The inequality situation in South Africa is certainly serious.

Half of the population survives on about 9% of national income. The richest 10% of the population receives more than 40% of the national income.

At the same time, in almost all sectors, the largest 10% of firms produce more than 50% of output. This means a minority has the lion's share of the market and of revenue.

In his apostolic exhortation in 2013, The Joy of the Gospel, Pope Francis said: "While the earnings of a minority are growing exponentially, so too is the gap separating the majority from the prosperity enjoyed by those happy few."

The status quo must change. We should not concentrate the nation's wealth to "the happy few". If we do so we will be growing a monster that we cannot sustain. SA's fiscal policy already goes a long way towards redistribution of wealth through taxation.

But we must focus on reducing inequalities of economic opportunity and broaden the base of participants in the growth process to ensure that more people benefit.

Interestingly, in our case inequality rises simultaneously with improvements in infrastructure that are supposed to transform the economy and improve the lives of the marginalised.

This is caused by compounding defects. The entire economy sits on top of a structure that replicates inequality. The structure of our economy, our education system, deindustrialisation and dwindling skills base diminish any gains to be derived from fiscal policy.

Firstly, if education is so important for reducing inequality, why do so many South Africans remain under-educated even though we spend a significant part of our budget on education?

It is not only education that matters, but the conscious development of a family system that has knowledge at the centre of development. The convergence of character between the development of family values and education is important.

Second, industrialisation while expanding employment opportunities, will also boost incomes.

Food, for instance, makes up 36% of total consumption for lower-income groups, but only 7% of total consumption for the richest people. It has important consequences for the size of distribution of income.

We need to work on making the poor self-sufficient in the production of goods such as food, agriculture, furniture and clothing.

Third, on the transfer side we should investigate conditional cash transfers aimed at encouraging the acquisition of new skills.

Social grants narrow the income gap by providing income support for basic goods.But these cannot improve the loss of confidence, loss of good family relations and social exclusion that education and employment opportunities can help uplift. Given the scale of unemployment, linking some transfers to training will be helpful.

We all desire to have a more vibrant economy. We must upscale our focus on access to finance and quality reforms of state procurement to support the expansion of economic opportunity.

We need urgent reforms in key areas such as labour, land, and finance to enhance our developmental path. SA does not lack significant opportunities to expand the participation of marginalised communities in the economy.

We still have hundreds of hospitals, roads, dams and energy sources to build. We also have new emerging opportunities such as the oil and gas sector. These provide channels of development.

Those in positions of influence - in business, unions, churches and in government - must ensure that ordinary people share in the country's prosperity.

lSithebe is an independent economist and has been a senior economist for KPMG, Standard Bank & Applied Development Research Solutions