Extreme inequality in the distribution of income exists among racial groups and households. Great poverty exists alongside extreme wealth. African households, households in rural areas, especially those headed by women in rural areas, are the most affected. Unequal income distribution has severely hampered development, particularly that of people in rural areas, who are generally poorer than their urban counterparts. In 1993 the average per capita income of rural Africans was only R151 per month, compared to metropolitan incomes of R335.
Rural households rely mainly on remittances and state social grants for income.
Remittances make up a tenth of household income and social grants account for about a quarter of household income in rural areas. South Africa is characterised by large-scale unemployment in the formal sector of the economy. The formal economy created an estimated 350000 employment opportunities between 1980 and 1991, while the extended labour force grew by 4,5 million people. Unemployment has been severe among women, especially those in rural areas, as well as among young people under the age of 24. Unemployment among people with disabilities is high.