This project, in partnership with South African NGO The Black Sash, implements interventions to ameliorate indebtedness, building on work that formed the basis of a REF 2021 impact case study. Welfare beneficiaries are targeted by lenders who use state grants as security for high-interest loans that are automatically repaid. Post-Covid, with welfare payments even more widely distributed than previously but with scarce institutionalised advice; with pay points decommissioned and with retailers used, instead, to distribute payments, the need for robust intervention has intensified. It is imperative—as noted in similar settings like Brazil—to combat the ‘collateralization of social policy’ (Lavinas 2018) while keeping open the possibility of borrowing at reasonable rates. Previous collaboration produced a research report; new collaborations with government, other NGOs, and the Stellenbosch University Law Clinic (USLC) will produce a revised handbook for paralegals.
Lead applicant: Professor Deborah James
Department/Centre/Institute: Department of Anthropology
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Tackling reckless lending and indebtedness in South Africa