M.Ed. / Poverty is a serious concern all over the world. This phenomenon hinders development, particularly in rural areas where the majority of families are living below the poverty line. In many rural communities the RDP programme did not reach the majority of people. The study is aimed at finding out the extent, perceived causes and consequences of poverty in Homu A and Homu C near Giyani. The families regarded as the more impoverished in the two villages were selected as participants of the study. One member from eight families in each village was interviewed in this qualitative study. The collection of data was made through survey interviews as suggested by Silverman (1993), observations, and the recording of artefacts on poverty. A literature review was conducted to construct a theoretical framework for the inquiry. The findings show that many people in these areas are extremely poor. They are physically, socially and psychologically affected by poverty. They are helpless because they believe there is nothing they can do to develop themselves and their villages. Their helplessness hampers development of these communities. The findings also indicate that there is a need for informal and non-formal programmes to educate and empower the community members to combat poverty. These programmes should be linked with income generating projects to equip the community members with skills needed for the economy.