The study investigates whether government-sponsored community development projects in the township of Mdantsane, Buffalo City Metropolitan Municipality, South Africa, have achieved the intended goal of alleviating poverty among the beneficiaries. The specific outcomes of poverty alleviation are: improved income, acquisition of new skills, reduced dependence on welfare grants. Four urban farming projects were selected, namely: Buffalo City Organic Producers, Sakhisizwe Nursery, Lusindiso Farmer’s Trading Co-operative and Mbombela Co-operative. Focus group discussions and a mini survey were conducted with project beneficiaries, while relevant government officials were interviewed. Conceptual insights were drawn from community development theory. The findings showed that the broader context within which the projects occurred was characterised by a pro-poor social policy, relative availability of resources with which to translate it into action, and a measure of entrepreneurial potential amongst community members. However, while one of the projects showed some promise (in the sense that beneficiaries acquired new skills and had a generally positive attitude despite not enjoying any improved income status), all the others appeared doomed and trapped in dynamics such as: excessive government control of the management of the initiatives, ineffective project monitoring, and the mischaracterisation of the initiatives by both the government and the beneficiaries. A distorted sense of ownership and perverse community participation seemed to prevail, which in turn robbed the initiatives of their poverty alleviation potential. The study thus concluded that specific benefactor-beneficiary dynamics are crucial for the success of a given anti-poverty intervention. A robust pro-poor social policy, availability of resources with which to translate it into action, and local entrepreneurial potential do not in themselves bring about success; they must operate in a certain way and be undergirded by certain principles for them to become a powerful mechanism for alleviating poverty. It is against this background that the researcher offers some recommendations.