The New Randlords: South Africa Is Booming. the Economy Is Enjoying Its Biggest Surge since the Second World War-And for Once It Is Not Just Whites Who Are Prospering. Alec Russell Reports on the Rise of the New Black Super-Rich

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United States of America Boulevard: there was a time when no self-respecting black-township resident would have wanted an address so redolent of US imperialism. Just a decade or so ago, Fidel Castro and Che Guevara were township street names of choice. One might have thought that Hugo Chavez would now be keeping South African sign-makers busy. No chance, or at least not in Cosmo City, a flashy new housing estate on the outskirts of Johannesburg. Here the US of A Boulevard is among the most sought-after addresses--as is Las Vegas Crescent--because it is here that members of the new, black middle class are flocking in droves, in search of mock-Tuscan villas and a share of the consumerist new South African dream.

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When Nelson Mandela was released from prison in 1990, his first speech brimmed with vintage redistribution rhetoric. To be fair on the "old man", it had been forced upon him by anti-apartheid radicals, who feared he had gone soft behind bars, but not surprisingly the markets dived. Since then, however--indeed, since the very next morning--the economic policies of the African National Congress have moved to the right. Now, as South Africa celebrates the anniversary of Mandela's inauguration on 10 May, bigwigs in the ruling party are embracing capitalism with such relish that President Thabo Mbeki, the very man who unleashed this capitalist fervour, is expressing unease over some of his old comrades' pursuit of bling, and the long-quiescent unions are muttering that it is time to take "back" the party.

"This is banker heaven," one American banking executive told me recently, shortly after my return after nearly a decade away. He did not need to explain. All around us in a trendy Johannesburg mall were members of the "Black Economic Empowerment" (BEE) crowd, many no doubt celebrating deals to secure equity from historically white-run firms, a key part of the government's policy to level the economic playing field. I found the scene all the more riveting given that I had last visited that mall in 1993 when, as a newly arrived foreign correspondent come to cover the bloodbath threatening the transfer of power, I had been the only customer in an Italian restaurant. The proprietor was convinced that South Africa was heading for the abyss, and sold up. How wrong she was (on both counts).

Buoyed by the surge in global commodities prices, and steered by Mbeki's prudent fiscal policies, South Africa's economy is enjoying its most concerted spurt since the Second World War and Johannesburg is booming. For the past two years the economy has grown at about 5 per cent. This is not as high as it needs to be if unemployment is to come down, but to have ventured such a prediction at the start of my first stint would have led to widespread rolling of eyes. Yet now, consumer confidence is at a 25-year high; the Johannesburg Stock Exchange's top 40 index has gone up nearly 250 per cent in the past three years; house prices are up more than 125 per cent since 2003; new car sales soared by nearly 16 per cent to an astonishing 714,000 last year.

And for once in South Africa's history, it is not just white people who are prospering. Leaf through the pages of City Press, a Sunday newspaper aimed squarely at black South Africans. I remember it for its doughty political coverage, but not much else. Now it has a glitzy motoring section. "Two BMW 3-Series for the price of one ", ran a typical headline two weeks ago. Beneath it was a story headlined: "Mercedes-Benz B200 pricey but quite nice". According to figures quoted by the business magazine Finance Week, the number of "super-rich" (those earning more than four million rand--[pounds sterling]285,000--a year) has risen by 50 per cent in the past five years. While blacks, Asians and people of mixed race accounted for less than 25 per cent of this category in 2001, they now account for 34 per cent; that figure is expected to rise to over 40 per cent by 2011. …