Black middle class drives economy outpacing white people
NATIONAL: (By Joseph Thomson)– South Africa is going to have a new look in 2014 and further as black middle class has replaced white class in all sphere of life especially in terms of big driving force behind the economy.
Study revealed that out of middle class last year, 51 per cent were black, in comparison to 34 per cent white. While difference between black and white proportions was totally different in 2004 when white constitutes 52 per cent compared to 32 per cent black.
As per report available to The South Africa News, “Four Million and Rising”, revealed that the black middle class was rising steadily being a mounting consumer power by collectively spent 400 billion rand (€27.5 billion) in an economy.
Some years ago the African Development Bank assessed that Africa’s middle class stood at nearly 350 million in 2010, becoming to a third of the continent’s population. Bank study also defined that the middle class were those who spend daily from $2 to $20 (€1.40 to €14), in average.
Citi’s Africa economist, David Cowan named African middle class as wealthy elite in Africa and said that it was a strong consumer group, growing quite steadily,” with, ideally, $5,000-$7,000 of disposable income a year, which is $14-$19 a day.
Multinational companies have eyed on South Africa, observing a mouth-watering new market for mobile phones, cars, electronics, clothing and food, among other products.
According to another study, South Africa’s black middle classes had outpaced their white counterparts over the last 80 years.
Although the African National Congress-led government is massively alleged with failing to do up to mark but it is also reality that it was ANC who introduced such policies due to which millions of black South Africans have jumped into the middle-class category since apartheid breathed last in 1994.
A nonprofit organisation based at the University of Cape Town has estimated the black middle class rose from just under 1.7 million in 2004 to 4.2 million in 2012.
Posted by sanews
on January 6, 2014. Filed under Business,Latest News.
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