| Summary: | Income generating projects play a significant role in the lives of rural people and make a significant contribution to rural development in South Africa. Although, income generating projects play a major contribution to rural development, problems of funding for such projects and the high levels of unskilled personnel to run those projects is still a challenge in most, if not all rural areas of South Africa. With the government failing to meet employment demands of most unskilled people and with most vacancies demanding work experiences of up to 10 years, most people especially the youth have found themselves unqualified for such vacancies hence they have resorted to projects in their communities in way boosting family incomes and at the same time alleviating poverty. Therefore this study has undertaken with the objectives of assessing income generating projects in relation to its contribution to rural development in the study area. The sustainable livelihoods and basic needs approaches were used to assess the contribution of income generating projects in poverty alleviation in rural areas. Such approaches to rural development can help in reducing the poverty gap that exists in society and at the same time help achieve sustainable rural development. Findings show that there are a number of challenges and constraints that are experienced by the Amahlathi community, like poverty in the form of poor water and sanitation services, education and health services and landlessness. Moreover, serious service delivery protests are a daily occurrence, corruption at local government level have all hindered the successful support of the government needed to boost these rural income generating projects. To have a successful rural development, there is need for the government to support these projects in the form of skills training programmes or finance. The study recommends that a serious state intervention should occur coupled with the visitation and revitalization of the RDP programme correct its mistakes.
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