Despite more than 20 years of democracy in SouthAfrica, disparities in income distribution are extreme. More than a third of South African population live in poverty; with a monthly income below ZAR 380, which is less than the World Bank’s stipulated USD 1.90 a day poverty line. These individuals spend more than half of their income on basic needs. On the other hand, half of the population live in state of susceptibility to poverty, with a monthly income below ZAR 1 600. A quarter of the population can be considered middle class, with income ranging between ZAR 2 000 and ZAR 4 200, while only 10 percent have a monthly income that is more than ZAR 11 560 and smaller proportion of the population can be considered elite. This disparity creates a gulf of two economies in one country, where top earners earn comparably to earners in developed countries