This paper provides a review of six key socio-economic challenges that face South Africa at the dawn of the 21st century. The paper is largely descriptive with its main purpose being to present the issues as objectively as possible with the focus being on how things have changed especially during the period of the first democratic government. No attempt is made here at providing policy prescriptions. Rather it is hoped that the information gathered can be the basis for informed discussion as well as providing the impetus for progress towards greater consensus in economic policy making.