Measuring stimulus effects on the South African economy

Does the use of stimulus programs and social grants by beneficiaries have an impact on the South African economy? Conducted by Infusion Knowledge as part of the Extension of the EU-AFD Research Facility on Inequalities, this research project examined the purchasing habits of stimulus beneficiaries and analyzed how the new "post-stimulus" environment impacts the trade and decision-making of commercial entities and some of their customers.

Context

This paper aimed to contribute to the body of knowledge on the impact of social protection and employment stimulus measures on the formal and informal economies.

In July 2019, Infusion Knowledge Hub conducted a study on opportunities for wholesale in Stock Road in Philippi in the Western Cape Province on behalf of a large South African supermarket chain. The purpose of the study was to understand the trading environment in the informal and small business market to elicit a value-added cash and carry shopping proposition (Vawda, Prinsloo and Prinsloo, 2019).

In June 2022, as part of a research program launched by the Presidency of South Africa and Agence Française de Développement, funded by the European Union, Infusion Knowledge Hub replicated the study to determine whether there are shifts in purchasing behaviour amongst the informal and small traders that participated in the 2019 research. In doing so, the study aimed to provide granular data on shifts in the informal and small traders’ operating environment around Stock Road in Philippi between July 2019 and June 2022. In addition, the research investigated the spending patterns of 30 Social Relief Distress (SRD) grant recipients and 31 Basic Education Employment Initiative (BEEI) participants.

This project is part of the Extension of the EU-AFD Research Facility on Inequalities (RFI). Coordinated by AFD and financed by the European Commission, the Extension of the RFI will contribute to the development of public policies aimed at reducing inequalities in four countries: South Africa, Mexico, Colombia and Indonesia over the period 2021-2025.

Goals

Two studies analysing the local effects of the South African Presidential Employment Stimulus Initiative (PES) and the national social grants programme were produced:

One study, presented in note form, that builds on Infusion's long-standing relationship with Shoprite to allow SALDRU to use Shoprite's customer data to explore the shopping habits of stimulus beneficiaries. The focus was on unpacking purchasing data related to beneficiaries who receive the Distressed Social Relief Grant and those who are part of the school assistants programme managed by the Department of Basic Education (DBE).
A research paper that details through descriptive and inferential statistical analysis the transfer to a mobile application, called NECTA, of a landmark study by Infusion and Shoprite conducted among informal vendors and "Spaza" stores in Philippi. This data provides an overview of what has been happening in these businesses since July 2019 (the date of the initial project), as well as an opportunity to see how the new "post-stimulus" environment is impacting the trade and decision-making of these business entities as well as some of their customers.

Method

Results

You will find below the research paper related to this project :

Measuring stimulus effects around Stock Road in Philippi on the Western Cape.

Teachings

Download the project sheet

01/01/2022

Project start date

30/12/2023

Project end date

Fighting Inequalities,

Employment