Authors - Benita G Zulch, Mafhungo Musefuwa, Joseph Awoamim Yacim Abstract - This study aims to evaluate the socio-economic challenges that affect the inhabitants of the informal settlements in Msholozi, Mbombela, South Africa. Although many studies have been done about the challenges of Informal settlements across the world, one thing is common all informal settlements pose features that might be different due to the location. The age-long apartheid legacy that greatly influences the social and economic life of the people relative to their settlement patterns in South Africa was the main motivation for this study. To gather relevant information needed to achieve the objective of this study, household heads in Msholozi were interviewed. Findings reveal that lack of employment and poor remuneration for those with employment was paramount among the economic challenges; while the social challenges included poor facilities in school, health centre, and shopping centre among others. Interestingly, the residents of Msholozi are satisfied with their living environment. The study, however, recommends that government should be proactive in meeting the housing needs of its citizens as enshrined in the constitution to curb the proliferation of informal settlements in South Africa.