Overall, the country “is in transition” and acceptance of varying sexualities is growing. (File photo/MG)
The size of South Africa’s LGBTI market — comprising lesbian, gay, bisexual, transgender and intersex people — contributes at least R250 billion to the economy every year, despite persistent barriers that exist for the community, according to a study commissioned by The Other Foundation.
This represents a 20% increase from the higher end of the 2017 estimate, according to the research, which used a triangulated methodology that considers macroeconomic indicators — nominal private consumption, employment rates and labour productivity — as well as quantitative data collected by market researcher Ipsos South Africa on the economic profile of 400 respondents.
“The purpose of this report is to support a call for change by offering new insights into the economic influence of LGBTI people in South Africa, including a definitive quantification of the LGBTI market,” said The Other Foundation’s chief executive, Neville Gabriel.
The majority of participants self-identified as men (56%), women (31%), gay (47%) and lesbian (19%) in terms of their gender and sexual orientation.
“This over-representation of men, and of binary and homosexual identities, reflects a common feature in LGBTI data collection, where historically visible identities continue to stand out,” the report says.
Ninety percent of the respondents are actively involved in income-earning activities, with 75% employed either part time or full time, showing strong workforce participation, despite the challenges.
The report says 15% of the respondents are active entrepreneurs, with over half leading businesses that have been operational for more than five years.
Despite facing systemic barriers, many LGBTI individuals are financially resilient, with
29% of those surveyed having savings of more than R100 000, while 70% provided financial support to others, demonstrating the community’s role as economic contributors, not only to their households, but also to the broader society.
A significant portion of LGBTI professionals hold leadership roles, with 44% occupying managerial positions and 36% overseeing teams of five or more, which the report said demonstrated “their influence and leadership in the workplace”.
Given the lack of comprehensive data on the economic factors pertaining to the LGBTI community in South Africa, the researchers used an estimation to make their calculations, said The Other Foundation’s research officer, Caio de Araújo.
“To estimate the value of the LGBTI market, we assumed the size of this demographic in South Africa to range from a lower bound figure of 1.65% and an upper bound of 6% of the general population, which is comparable to the existing data for other emerging markets, such as Brazil and Columbia. R250 billion sits at the mid-point of these calculations,” De Araújo said.
This is the first report in South Africa that focuses on economic opportunities for LGBTI people who have been “a missing, yet key, part” of the local market research landscape.
It builds on data published by The Other Foundation in 2017 that estimated the economic contribution of LGBTI people to be somewhere between R53 billion and R204 billion.
In its 2021 edition, the South African Workplace Equality Index revealed that participating companies averaged a score of 59% for LGBTI inclusion. While this marks an improvement from the 2019 average of 49%, it also indicates that many businesses still struggle to transform institutional cultures and create truly inclusive work environments for LGBTI professionals.
But, overall, the country “is in transition” and acceptance of varying sexualities is growing, De Araújo said.
A 2016 study found that acceptance of homosexuality and gender non-conformity was increasing among the more progressive segments of society, particularly among urban and younger demographics.
This article has been updated to reflect the correct amount of R250 billion in the headline, instead of R250 million, as was previously reported. The error is regretted.