The post-apartheid government received the burden of eradicating widespread poverty, inequality, and unemployment. Trends of poverty and inequality in South Africa could be traced as far as three centuries ago. We find that, due to apartheid, there has been a clear link between race and poverty, along with inequality in South Africa. Macro-economic indicators the Lorenz Curves and Gini Coefficients for different population groups in South Africa are reliable indications for displaying poverty and inequality. However, GDP per capita is unreliable, as it does not show the equitability of income distribution.
During Apartheid, the Group Areas Act caused racial segregation and was an important instrument that excluded non-whites from developing that restricted them from accumulating wealth. There were job reservation and security for whites, through white affirmative action, First Canrnegie Commission. There were various discrimination, whether it being extremely low wages, or not allowing black women to urban areas to find jobs and pay for their’ children’s education and food. The Native Land Act, 1913 limited land ownership to black people in SA to only 10%(Feinberg). Before apartheid, most land was controlled by the Dominant European Colonists’, these individuals were mainly white. When SA became industrialised, it was easy for land owners to raise capital to invest in the gold and diamond industry, as they could easily sell land or receive loan funds.
During apartheid,