South Africa’s black middle class, sometimes referred to as Black Diamonds, has grown by an astonishing 30% in just over a year, according to a study conducted by the University of Cape Town/Unilever Institute of Strategic Marketing and TNS Research Surveys.
Containing extensive qualitative research, the new study Black Diamond 2007: On the Move, is based on a sample of 4Â 500 people and follows two previous studies by the research partners. Its findings show that Black Diamonds now comprise an estimated 2,6-million South Africans compared with two million in 2005.
Professor John Simpson, director of the UCT/Unilever Institute and Neil Higgs, director of Innovation and Development at TNS Research Surveys, said the survey revealed unprecedented movement in South Africa’s single most important market. The new statistics showed that there was not only growth from new entrants into this segment, but also from within its ranks as people move up the ladder and established themselves in the middle class.
The sector’s combined annual spending power had shown strong growth since the last study conducted over a year ago — from R130-billion at the end of 2005 to R180-billion at the beginning of 2007.
“Perhaps the most important figure here is that 12% of South Africa’s black population — that is Black Diamonds — account for over half [54%] of all black buying power. This compares with 10% accounting for 43% of black buying power 15 months ago,” says Simpson.
In studies conducted at the end of 2005, researchers found many respondents in townships expressed the desire to eventually move to the suburbs.
“This prediction has proved correct, with the number of Black Diamond families living in suburbs in South Africa’s metropolitan areas growing from 23% to 47% in the past 15 months,” explains Higgs.
TNS Research Surveys’ Nomsa Khanyile says many respondents claimed their hearts were still in the townships, but cited pragmatic reasons for making the move to the suburbs.
“As well as making a sound property investment, their reasons include tighter security and better-resourced schools for their children. Some also reported feeling societal pressure to move to the suburbs as it represented a visible mark of success.”
“At the end of 2005, we estimated that 23% (0,45-million) lived in the suburbs and 77% (1,55-million) lived in the townships. The latest estimates reveal 1,2-million Black Diamond adults in the suburbs (47%) and 1,4-million in the townships (53%),” said Khanyile.
Simpson said the migration didn’t mean that Black Diamonds were turning their backs on townships: “Our study shows that a high percentage of Black Diamonds who have moved to the suburbs return to townships on a regular basis. Even though they live in the suburbs there remains a strong desire, right across the board, to maintain their township connections.” ‒ I-Net Bridge