Register now for Fin24 Dashboard and get access to portfolios, watchlists, financial comparison tools, and a whole lot more to help you achieve your financial goals.

Data provided by McGregor BFA
All data is delayed
Loading...
Where am I? Home
 
Prices are delayed by 15min.
Join the Fin24.com conversation about JSE-listed stock by using every time you tweet.

Not all fun for 'black diamonds'

Aug 14 2007 12:00

Related Articles

Black middle class explodes

Hard to sell to 'black diamonds'

Black exodus to suburbs

 

Top Stories

Cell C move sparks price war

May 27 2012 11:21

There's a price war raging between South Africa's cellphone networks after Cell C lowered the rates of its prepaid calls by more than 34%.

Tupperware agents incensed by fakes

May 27 2012 11:49

The country's 200 000-odd Tupperware agents are angry about the counterfeit products being sold as the real McCoy.

Another golf estate victim

May 27 2012 13:09

The oversupply of golf estates has claimed another victim.

 
Share Share line Print
Cape Town - Mzamo Xala disavows the term "Black Diamond" conferred on members of South Africa's booming black middle class who now hold nearly a third of the country's buying power.

The expression implies superiority, he protested, which offends the collective-mindedness of his cultural background.

"It doesn't speak to where we come from in terms of that 'one for all'," Xala, brand manager for South Africa's Springbok rugby team, told AFP at his office recently.

"Black Diamonds" are categorised as black South Africans, wealthy or salaried in "suitable" occupations, who earn at least R7 000 a month, are well educated and credit-worthy, and own or are acquiring homes, cars and household goods.

Xala has bought the flat he lives in and owns a car. He has moved out of the townships and lives in a largely white-populated Cape Town suburb.

He is single, 29, and childless, and spends about a fifth of his salary on less fortunate family members - some of them still township residents.

Group worth about R180bn

His lifestyle is a far cry from how he grew up, "like any normal black kid in a township", after which he studied marketing and business management on a bursary.

A report by the University of Cape Town's Unilever Institute said the number of "Black Diamonds" has grown by 30% in just over a year, to 2.6 million out of a total South African population of about 48 million.

The group is worth about R180bn, representing 28% of the total South Africans spend.

Nearly half live in suburbs previously inhabited only by whites, with 12 000 families or 50 000 individuals moving from the townships every month. Seventy percent reside in the financial hub province Gauteng.

Study leader John Simpson said "Black Diamonds" were sustaining the strong growth of the South African economy, which is averaging around 5% annually.

A key finding, he added, was that spending power had increased considerably among people already categorised as "Black Diamonds" since 2005.

Climbing the ladder quicker

"This shows they are climbing the corporate ladder quicker. It is not just about companies employing more people. This is not artificial, it is real," he said.

The growth in numbers was driven partly by the government's affirmative action policies, which hold companies to strict employment quotas that seek to make the workforce reflect South Africa's population, made up of 80% blacks and 51% women.

The "Black Diamonds" comprise civil servants, corporate employees and a "significant number" of entrepreneurs, said Simpson.

The newfound luxury of a middle-class lifestyle is not all fun and games, said Xala. The move from impoverished townships to the suburbs entails a major cultural adjustment for many "Black Diamonds", with less emphasis on a sharing culture and more on material welfare.

"There are big differences between where we have come from and where we are now.

"In the township, it is very exciting. There is a lot of social connection. There is a lot of intermingling with everybody on the street. It is really a nice vibe.

Not everyone benefiting

"In suburbs, the culture is very different. It is very much: get in to your house, stay in your house, get out. There is nothing happening on the streets. It is very ... structured, I would say.

It is for this reason that Xala often makes a visit on Sundays to Cape Town's Guguletu township, one of the country's oldest black townships that lies about 15 to 20 minutes' drive outside the city.

"People like to meet and greet even if they don't know you. I miss the accessibility of that kind of life," he said.

Many among those who have risen to the top, he added, felt a sense of collective guilt that the struggle against white minority domination had not benefited all equally since the end of apartheid 13 years ago.

Despite economic growth, South Africa is still hampered by high unemployment rates - a legacy of the apartheid era - that officially stand at 25% and unofficially at around 40%.

"The sacrifices were for everyone, yet the fruit of the sacrifices has not transpired to everyone," said Xala.

- AFP

 
 
Comment on this story
3 comments
Comments have been closed for this article.
Facebook's intrinsic value
May 23 2012 11:32

When it comes to judging a company’s worth, value investors like Warren Buffett look at intrinsic value. By that measure, Facebook’s shares are worth less than $10. A Reuters analyst breaks down the math. (Reuters)

Perfin

I arranged two workshops in Cape Town at the Cape Chamber of Commerce offices as well as two computer based workshops, one on Google Adwords and another on Joomla Administrator at the training centre in Somerset West. Emarketing Workshops - http://emarketingworkshops.co.za/next-workshops 1. Interne... Read their blog...

Recently updated
Podcasts
The Sishen saga

Legal expert Peter Leon on the increasingly complex legal wrangle over the Sishen Iron Ore mine. Time: 8:17 Listen Here...

Before you list

Is the clarion call of the JSE calling? Listen to Fin24’s expert panel discussion before you list your small business. Time: 17:29

Compare and Buy

Compare and apply for hundreds of financial products from many suppliers.

Credit cards Medical aid Current accounts Think Money

Money Clinic

Money Clinic Do you have a question about your finances? We'll get an expert opinion.
Click here...

Loading...