/ 3 May 2013

March of the black middle class has promising spin-offs

The perception that investing in Africa is a risky endeavour remains the biggest challenge.
The perception that investing in Africa is a risky endeavour remains the biggest challenge.

Having a pocket estimated to be about R400-billion deep, the black middle class has made its mark on a number of sectors such as retail, vehicle sales, affordable housing and education.

Although it has been growing steadily for 10 years, the black middle class received a major boost over the past few years with the government doubling its wage bill in an attempt to cushion the impact of the economic recession.

The University of Cape Town's Institute of Strategic Marketing, in a report titled "Four Million and Rising", found that not only is the black middle class supporting retail growth in South Africa, it is also investing in housing and education.

"That this market continues to grow and prosper is crucial to the health and future of the economy," the institute said.