The creation and sustainability of the black middle class in the Western Cape

Abstract

In order to understand the phenomenon of the rising black middle class, Bruger et aI., (2004:134) concluded in their study of the black middle class that, it was the asset deficit which was evident in the African population that accounts for the difference in the consumption behaviour of the' black middle class from their counterparts in other races. Asset deficit is described as the accumulation of luxury goods that include expensive automobiles and property. When the acquisition of such assets is gained through credit, as is the case with the credit worthy middle class, the individual debt of these individuals rises as the acquisition of such assets continue.

The purpose of this study was to investigate the creation and sustainability of the black middle class that anchored in political stability encourages social contentment and economic development. The findings of this process offered an opportunity for the state, banks and corporate organisations to review its policy priorities in order to make savings, investment and 'special structure' support networks a priority when dealing with sustainability matters for the black middle class.

It is therefore, important that the recommendations provided in the study will sustain the black middle class, which would maintain social peace by indicating economic progress that has only now, since democracy, been available to Africans through the expansion of the black middle class.

The thesis explains the challenges, which this class faces in its sustainability that will foster a deeper appreciation of the most effective ways to alleviate poverty and to economically enfranchise Africans. These had been the original objectives behind the government's programmes and initiatives.