M.Com. (Economics) / Combating poverty is at the frontier of analyses in South Africa today. The study to combat poverty in South Africa is six-fold. After setting the nature of the study to be pursued in Chapter 1, the dissertation analyses the theories of poverty in Chapter 2. The record of poverty in South Africa is analysed in Chapter 3. Chapter 4 focuses on the methods to combat poverty in South Africa. Chapter 5 is a summary of the main findings of the study. A proposed structure plan to combat poverty in South Africa is investigated in Chapter 6. Chapter I analyses the problem and its setting. Reducing poverty is the fundamental objective of economic development. It is estimated that 18 million people in the RSA live in absolute poverty. They live in households with incomes below the minimum income level ofR695 per month at 1990 prices. Sustainable economic growth is needed in the RSA to combat this poverty. Chapter 2 discusses the theories of poverty. Theories of poverty are today in a state of crisis. The alternative model derived from radical and structuralist interpretations of poverty has also proved disappointing. Myrdal's theory argues that poverty is caused by the inequality problem which is closely related to unemployment and material poverty. The minority group theory explains that poverty is caused by the death of the chief wage-earner and chronic irregularities of work opportunities. The sub-culture theory explains poverty as a way of life.

The South African government implements numerous strategies with the aim of reducing poverty. The social grant system is one of these. Social grants are aimed at reducing poverty as well as income inequality. Considering the growing number of social grant beneficiaries, people often question whether these grants reduce poverty and, if they do, whether they are effective.This treatise investigates the impact of social grants in poverty reduction. In order to investigate this, the researcher used the Tshwane Metropolitan Municipality, Gauteng Province, as a study area. This study examines the different views of social grants beneficiaries, and the importance of prioritisation when using this unearned money. It alsoinvestigates the role played by the heads of household and shows how beneficiaries’ locations can influence the use of unearned income. Social grants dispense little money, but the researcher discovered that the responsibility of spending and allocating the money lies with the head of household. The descriptive statists show that social grants have created dependency and that families require exit strategies to stop depending entirely on these grants. Findings from the correlation matrix show both positive and negative correlations. Finally, the study has identified the need for an integrated strategy that will not only provide income, but that will also improve the lives of South Africans.

This study investigates the impact of the impact of Social Grants in poverty alleviation; a case in point is the Child Support Grants in Lusikisiki. Poverty is characterized by an increase in depravation, unemployment and inequality. Social Security has been introduced as a social safety net that reduces the severity of poverty. The study uncovers the significance of the Child Support Grant in sustaining families and meeting their basic human needs. The study further shows that the Child Support Grant is a reliable monthly cash injection that benefits the children and other people in the households. It gives hope, allows beneficiaries to make choices and enables them to take care of themselves and their families, therefore restores dignity. The additional support provided to the Child Support Grant recipients promotes human development and improves access to education and health. The Child Support Grant has a significant impact on poverty alleviation.

Income generating projects represent one strategy adopted by the Department of Economic Development to alleviate poverty. The purpose of this study is to investigate the contribution of an income-generation project in Ngwanya Village, Dutywa in the Eastern Cape Province of South Africa. A sample of fifteen respondents was drawn from one income-generating project funded by the Department of Economic Development. The sampling method used for this study was purposive sampling. Data for analysis and interpretation was gathered through semi-structured interviews. Relevant literature that focuses on income-generating projects for poverty alleviation has been reviewed. Following analysis of the data gathered and interpretation of the study, conclusions are arrived at and various recommendations made. The research findings indicate clearly that the strategies being used by the Department of Economic Development were not sufficiently effective to achieve the desired goals of poverty alleviation.

Masihlumisane (let’s grow together) is a community based project in a small rural community of Glenmore situated to the south of the Great Fish River Nature Reserve (GFRNR) and half way between Grahamstown and Peddie in the Eastern Cape Province of South Africa. This rural community was established as a resettlement center during pre-1994 South African government forced removals (Hallett, 1994). Glenmore is economically and socially impoverished as there are few businesses, little economic activity and minimal social tradition in the settlement (Murray, 1989). This village is characterised by an out migration of people of an economically active age, high unemployment amongst residents, dysfunctional families due to parents living elsewhere in order to earn a living, and a youthful population desperate to obtain skills and experiences that will benefit them when they leave Glenmore in the future.

The aim of this project was to determine the extent to which an agricultural project contributes to the alleviation of poverty in a community. This was done through a case study of one agricultural project based in Kidds Beach, in the Eastern Cape. The research was conducted utilizing the qualitative research method. The findings depicted that the standard of living for the community had altered due the employment opportunities afforded by the project. The findings also illustrated the project is the only one of its nature in the Eastern Cape and that similar projects are in the process of being established in communities in the Transkei. The cultivation of macadamia nuts is costly and the target market is concentrated largely in Europe. The success of the first crop and the dividends procured, the project has proven itself to be a sound method of community and rural development which can encourage investment from other parties.

An agricultural project as implemented by the DRDLR is seen as a strategy and an attempt to alleviate unemployment at improving lifestyle and livelihoods on farms. This study attempts to explore the impact of agricultural projects on alleviating unemployment in the Cacadu District in Grahamstown. The research topic attempts to establish whether these unemployment alleviation projects had sufficient impact and contributed to socio-economic developments of the emerging farmer. A sample of the respondents involved in an agricultural project funded through Recapitalization programme by DRDLR participated in this study. A purposive sampling method was used for this study. Data collected was gathered through semi-structured questionnaires. Related literature that focuses on agricultural projects for alleviation of unemployment has been reviewed. Various recommendations based on findings of the study have also been made. Among findings that were made, it emerged that the Recapitalisation Programme has not made sufficient impact on the alleviation of unemployment. Findings if the study indicates that beneficiaries were not trained sufficiently with financial management skills which are key in equipping them to make substantial profits from their farm. The research findings indicated that the strategies that were used by the department through Recapitalisation were not effective enough to achieve the desired outcomes of alleviation of unemployment.

The central objective of the research study was to evaluate the role of Mnquma Local Municipality in poverty alleviation in Mbiza Administrative Area. The key debates after apartheid have been on the successes and shortcomings of the social and economic policies that were adopted. The ANC-led government decided to approach poverty reduction by closing the inequality gap between racial groups in South Africa. It planned to provide services that would improve the lives of the poor and also create employment to sustain development. To provide the necessary services, the Government formulated two broad, but linked macroeconomic policies namely: the RDP and GEAR. This indicated the importance with which the people’s welfare and growth are regarded by the South African government. This guided research report attempted to investigate and analyse the role played by Mnquma Local Municipality to alleviate poverty in the Mbiza Administrative Area. This report shows that poverty is still extreme. The Municipality has achieved limited success in alleviating poverty and prioritising skills development among the community. This research demonstrates the IDP and its mechanism process in trying to address poverty alleviation in the Municipality’s geographical area of responsibility. This report also reveals that much has to be done to improve the effectiveness of the IDP in enhancing and fulfilling its intended goals and objectives.

South Africa is a country faced with immense challenges, such as poverty, as a result of high levels of unemployment. Poverty reduction has become an international phenomenon in view of high levels of poverty in most under-developed and developing countries. From 1994, the South African Government implemented various income generating projects amongst other programs aimed at alleviating Poverty reduction initiatives in South Africa mostly come from government and civil society structures, or non – governmental organisations (NGO) with the aim of changing the living standards of the poor so that they can at least meet their basic needs, such as food, shelter and clothing. This study seeks to explore the impact of income generating projects funded by the Department of Economic Development in the Sisonke District at UMzimkhulu, focussing on the efforts the Paninkukhu co-operative. The study is important because of the high levels of poverty. South Africa (SA) is a country faced with the challenge of poverty as a result of the high levels of unemployment. The research method chosen for the study included a qualitative and quantitative research approach where data was collected through the use of interviews and a questionnaire. The findings of the study indicate a need to provide training to the project members on capacity building.

Africa while being underdeveloped in terms of industry and infrastructure has much rural land and therefore has significant potential to provide global food security. This study investigates agriculture as a contributor to economic development of Nkonkobe Local Municipality, Eastern Cape, South Africa. While the potential of agriculture, in Nkonkobe Local Municipality is high, this sector has not been fully developed to the benefit of the community and the municipality at large. The results of this study have pointed out that the Eastern Cape, Nkonkobe Local Municipality in particular is where communal farming is practiced on the largest scale and where further growth can take place. This study is informed by the goals of reconstruction and development, as expressed in the Government’s Reconstruction and Development Programme (1995) tabled to meet the basic needs of the people, develop its human resources and to build the local economy. This study aims to transform Nkonkobe Local Municipality into an economically developed area of Amathole District Municipality, by improving the area’s agricultural contribution to the Local Economic Development (LED) of the area. This study supports entrepreneurship and innovation, job creation, raising the quality of basic services to the poorest citizens of Nkonkobe Local Municipality, and increasing the distribution of agricultural land to small holders. This study promotes the development of agricultural sector, which will enable it to absorb more low skilled labour which will assist in poverty alleviation, and promote LED initiatives. This study also develops and promotes the sustainable contribution of agriculture to LED programmes, and improves the participation of local communities in these programmes. The study was conducted using qualitative research methodology. The findings of the study reveal that agricultural infrastructure in support of LED in Nkonkobe Local Municipality must be established and improved. Such infrastructure should include the reticulation of services, such as irrigation schemes, big dams, farming equipment, tractors, laboratories, cold storages and communication links. These services are currently inadequate in the area, and hamper development and progress that the area clearly has great potential to add in terms of global food security and poverty alleviation.