Buying Patterns Reflect Our Economic History

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BYLINE: Sihaam Nieftagodien

and Servaas van der Berg

The African middle class, initially very small, has expanded tremendously since the political transition and has become a social force to be reckoned with.

The growing income of this group has made it increasingly visible and economically influential, as higher incomes allow higher spending.

As a result, the African middle class forms a growing part of the overall market. Speak to retailers or property agents, and they'll tell you that the presence of a growing African middle class is an important aspect of the economic boom we are experiencing.

By our estimates, the number of members of this class has increased threefold, from about 400 000 people to 1.2 million, taking an income of R40 000 per household member as the middle-class threshold.

In the past nine years, car ownership among Africans increased from about one in every 20 households (5.1%) to one in every six households (16.2%). In cities, almost a quarter of African households now own a car.

The researcher and political commentator Lawrence Schlemmer has found that though the African middle class is still relatively small, it has been growing spectacularly at over 20% per year over the past decade.

He also argues that it has a very important social role, for "Social organisation and a self-confident middle class are the underpinnings of the socioeconomic and political pluralism that gives society the flexibility to adapt to economic challenges."

But this middle class is "not yet consolidated and secure in terms of assets, status, and self-image", which leaves it …