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The thesis looks at the situation of poverty and unemployment in a South African Township. The study employed household indicators to map an economic profile of the area. Poverty and unemployment are defined and then measured for the township. The HSL which is defined as an estimate of the theoretical income needed by an individual household to maintain a defined minimum level of health and decency in the short term, was used as a measure of poverty in the area. The main aim was to analyse the economic sustainability of the area. The economic sustainability of the township was determined by the income generating activities in the area, household income derived from various sources, projects proposed by the LED strategy, and the impact these may have on poverty and unemployment in the area. The premise is that in a sustainable economy, poverty and unemployment is reduced over time. The thesis proposes the adoption of an import substitution initiative by producing goods for local consumption as a way of helping in reducing poverty and unemployment for the area, thus improving the economic sustainability of the area.