Young women rise from poverty
23 May 2005
More than three million working class South Africans have escaped poverty since 1998, joining the ranks of the lower middle class. Of these, about 1.6 million are women and some 1.3 million men.
New research by the South African Advertising Research Foundation (Saarf) reveals that the number of people in the living standard categories LSM5 and LSM6 have grown by three million - most of them young women.
The living standards measure, or LSM, ranks the country's population from poorest (LSM1) to richest (LSM10). Those grouped in LSM1 are rural people with an income of under R1 000 a month. Urban dwellers with a good education and an income of some R19 000 a month fall into the highest category, LSM10.
But the fastest-growing groups in South Africa are LSM5 and 6. Telephone operators, shop cashiers, semi-skilled workers, security guards, junior police officers and students, they are urban, have a high school education and earn between R2 500 and
R4 000 a month.
And according to Saarf, they are booming. The three million additional people in LSM5 and 6 have given the groups a collective buying power of R160-billion a year.
The 'bappie' boom
Together making up over 27% of the country's population, the rise of the lower middle classes has led the Sunday Times to coin the acronym "bappies" - booming, aspirational and previously poor.
This distinguishes them from South African "buppies" (black upwardly mobile professionals), the black elite that emerged in the 1990s.
The bappy boom has been described as the country's biggest economic wave yet.
Bappies are mostly black, young and female. Saarf research reveals that single women have their biggest presence - 1.09 million - in the LSM5 group.
LSM5s, at 13.1% of South Africa's population, are urban and aged 25 to 49. They are educated up to matric and earn about R2 500 a month. They listen to urban radio stations,
watch state TV and read weekly newspapers and magazines.
LSM5s have electricity, running water and a flush toilet, and own TV sets, music equipment, a stove and a fridge. Some of the Saarf survey responses on their activities were that they had "started exercising", "painted the house" and "bought tapes and lottery tickets".
At 14% of South Africa's population, those in LSM6 are 25 to 49 years old, have a matric or higher education and earn about R4 000 a month. They listen to the radio, watch TV, read magazines and newspapers and go to the movies.
The LSM6 group has the highest level of urban flat living. Almost all of them own a TV, fridge, entertainment centre and cellphone. Many have washing machines and freezers. They have electricity, hot running water and a flush toilet.
According to Saarf, 1.4 million South African adults have migrated from poverty into LSM5 since 1998, while 1.6 million have moved into LSM6.
And in the 10 years since the
country's first democratic elections in 1994, the largest exodus has been from LSM1 - the poorest of the poor - and LSM2. The groups showing the greatest increase in numbers have been LSM6, followed by LSM4 and LSM5.
Why the bappie boom?
The LSM5s and LSM6s have managed to rise above the poverty line - broadly drawn at LSM4 and below - with the help of South Africa's booming economy, low inflation and new tax and subsidy breaks.
"It is no accident that this phenomenal growth has come about," the Sunday Times wrote in its 14 May leader article. "It is the direct result of the pursuit of sound economic and fiscal policies by the government, which have produced a low-inflation environment in which new opportunities have opened up to those on the lower rungs of employment.
"Spending on social welfare and infrastructure have contributed to an environment of greater mobility for those who might previously have found themselves in a poverty
trap."
While the rise of the black elite has allowed money and opportunities to "trickle down", service delivery and much higher child and pension grants have allowed prosperity to "trickle up".
According to Saarf, there have been huge gains in service delivery in the 10 years since South Africa's first democratic elections. In 1994 only 64% of the population had their own home; by 2004 this was 78%. Those with electricity increased from 58% to 85%. Access to running water jumped from 68% in 1994 to 75% in 2004.
The country's economic gains have been reflected in ownership of basic household goods. In 1994 only 48% of South Africans had a fridge; by 2004 it was 66%. TV ownership rose from 39% to 58%, microwaves from 18% to 32%, music centres from 39% to 58% and stoves from 41% to 51%.
The gains have been shown in education as well. In 1994 only 14% of South Africans had a matric and 8% a post-matric education. By 2004 a quarter of the country - 25% - had
earned their matric, and 9% education beyond matric. In the space of 10 years, functional literacy rose from 66% to 80% of the population.
The credit break
The Saarf research also reveals that bappies' buying habits are becoming similar to those of the middle classes, with increased spending on education, security and status items.
A survey by Legit, a clothing brand aimed at those in the lower middle classes, revealed that their younger female customers spent up to 43% of their income on clothes.
Professor Johan Martins, head of Unisa's Bureau for Market Research, told the Sunday Times that the LSM5 group alone had increased its spending power to more than R70-billion a year - making up almost 40% of the entire bottom half of the economy.
The increased spending is partly a result of a new willingness by banks and retailers to grant credit to lower income groups.
Lincoln Mali of Standard Bank said that for the first
time, loan facilities were now being granted to the three million lower-income customers who earn R2 000 to R3 500 a month.
"We didn't understand this market before; we considered it high-risk," Mali told the paper. "But, right now, our loan-default rate is lower than at any time in history. Consumer confidence is at its highest mark."
SouthAfrica.info reporter
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