Over three decades since the end of apartheid, rising earnings among Black South Africans have substantially altered the racial composition of the country’s middle- and high-income groups, according to a detailed study analysing household survey data.
Bloomberg reported that the proportion of Black households earning more than 75,000 rand per month increased to 41 per cent in 2024, up from 29 per cent in 2012, while the share of White households in this bracket declined to 41 per cent from 61 per cent over the same period. This shift reflects broader changes in remuneration patterns and labour market access in the post-democratic era.
The analysis, conducted by the University of Cape Town’s Liberty Institute of Strategic Marketing in its report titled Social Class in South Africa, drew on data from Statistics South Africa‘s general household survey. Researchers segmented households into income bands aligned with government thresholds, including those for social grant eligibility, revealing that Black households now represent a larger portion of the working and middle classes compared to White households.
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The number of Black South Africans in middle- and upper-income brackets—defined as monthly earnings exceeding 22,000 rand—quadrupled to more than 7 million by 2024 from levels around 2012. Overall, the population in these higher brackets expanded to over 11 million from approximately 4 million during the period, indicating significant growth in the consumer base with greater purchasing power.
This convergence at the upper end highlights progress in reducing some economic disparities inherited from colonial and apartheid systems, where race and income were closely linked. The findings provide insights for policymakers and investors into evolving demographic and labour market trends, which could influence long-term growth prospects in an economy still marked by high inequality.
The study notes that while gains in higher income groups are evident, challenges persist at lower levels. Black South Africans continue to dominate the ranks of the poor and working poor, with their proportion in these categories increasing, underscoring that upper-tier advancements do not fully offset entrenched poverty.
The report emphasises that transformation in income distribution has occurred, though critics may argue the pace remains insufficient given historical inequalities. Factors such as improved access to education, employment opportunities in formal sectors, and affirmative policies have contributed to these shifts, even as structural barriers like unemployment—particularly among youth—and limited skills development constrain broader mobility.
In context, South Africa’s Gini coefficient for income inequality remains among the world’s highest, with labour market dynamics driving much of the disparity. Recent data from Statistics South Africa indicate persistent gaps, including average household incomes varying significantly by race and education levels, with tertiary-educated households earning substantially more.
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