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BLACK DIAMONDS Research into South Africa’s black middle class seems to back up anecdotal evidence and criticism from trade union Cosatu and others that the rich are benefiting at the expense of the poor.

According to figures from the University of Cape Town’s Unilever Institute of Strategic Marketing and TNS Research Surveys, not only are the poor lagging those in the high-income groups, but they were worse off in absolute terms in the first quarter of this year than they were a little more than a year earlier.

The figures show that estimated annual buying power of all black people rose from R300 billion in the last quarter of 2005 to R335 billion. But the buying power of the “black diamonds” was up from R130 billion to only R180 billion. This means the rest of the black population were poorer by R15 billion.

Of course, there are different ways of interpreting the figure.

Brait economist Colen Garrow has pointed out that figures from the SA Advertising Research Foundation show that between 2003 and 2005, about 975 000 consumers moved from living standards measure (LSM) 4 to LSM 7. And 147 000 moved from LSM 8 to LSM 10 – the home of the black diamonds.

If the trend is continuing, the explanation for the Unilever figures may lie in a population shift up the income scale rather than a redistribution of wealth.

The Black Diamond 2007 report is based on a sample of 4 500 people. It shows that an estimated 2.6 million people can now be classified as black diamonds, as opposed to 2 million in 2005.

John Simpson, the director of the Unilever Institute, says black diamonds account for 54 percent of all black buying power. “This compares with 10 percent accounting for 43 percent 15 months ago.”

TNS Research Surveys’ Nomsa Khanyile, says 1.2 million black diamond adults live in the suburbs (up from 0.45 million in 2005), while 1.4 million (down from 1.55 million) live in the townships.

But this doesn’t mean they are turning their backs on the townships, says Simpson. “Even though they live in the suburbs, there remains a strong desire, right across the board, to maintain their township connections.”