This report showed that there are mix views on whether poverty has increased or decreased in post-apartheid South Africa. What is clear though is that poverty is still at unacceptably high levels and that inequality has emerged as another major challenge that government must address. Moreover, poverty and inequality has major impact on the livelihoods of South Africans. The South African government should be acknowledged for credible legislative developments and policy frameworks to address poverty and inequality (National Planning commission 2011). However, there is consensus among scholars and policy-makers that current levels of inequality and poverty hamper economic growth as well as corrode the social fabric of a country. In the context of high and persisting poverty in the country, there is a need for a more detailed study and analysis of the livelihoods of ordinary South Africans. The overall aim of the present study is to use a livelihoods approach to obtain a more comprehensive understanding of how poverty impacts on the livelihoods of ordinary people in South Africa.