With calls for increasing accountability in sport programmes, it is critical for researchers to rigorously examine how sport can contribute to the development of young people. The present study was designed as an attempt to understand the nature of sport and sport-based youth development in the community of the Kayamandi Township in South Africa. Three topics related to sport-based youth development in a South African Xhosa township were examined: (a) required competencies for young people to develop in order to have a happy and productive life; (b) competencies acquired by young people through sport participation; and (c) transferable competencies from the sport domain into the everyday lives of young people. A phenomenological methodology was used by gathering participants’ perceptions and meanings through semi-structured interviews. Individual interviews were conducted with 10 coaches, 11 community members, and 19 athletes, with the data analysed through independent comprehensive inductive content analysis with constant comparison and critical reflection. The results of this investigation identified specific competencies developed through sport and transferred out of the sport domain, including the southern African philosophy of ubuntu (e.g., respect and caring for others), self-concept, self-discipline, and group skills. These competencies may help young people prepare to overcome the challenges of growing up in this community. The community-driven nature of the study allowed culturally relevant topics to emerge from the data, thus highlighting the need for community-driven research and programmes with widespread community involvement.