Abstract
This article explores how social grants can be repositioned as drivers of community economic development (CED) in rural South Africa. The study aimed to examine the role of grants in shaping local economic activity, assess patterns of economic leakage, and identify strategies to retain and leverage grant flows for sustainable livelihoods. The guiding research question was: How can social grants be harnessed to promote community-level economic development in under-resourced rural settings? Using a participatory case study design, the research employed tools such as the “leaky bucket” method to map local spending flows. Findings reveal that although social grants provide vital income support, most of this income rapidly exits local economies as a result of weak enterprise ecosystems and limited local production. However, the study also uncovered strong social capital, cultural practices such as letsema, and informal financial systems like stokvels that offer pathways for locally driven development. The study contributes to social work theory by advancing a decolonised, asset-based approach within the social development paradigm. It repositions local social work practice as a facilitator of economic agency, intersectoral
collaboration and collective action. Internationally, the study aligns with emerging trends that connect social transfers to local economic resilience, especially in the Global South.