A fundamental accelerator of black economic emancipation and transformation must be the deliberate use of black consumption power to effect political and economic change.
In any country where there is a vibrant middle class with significant spending power, economic growth follows as a matter of course. The developing world progressed economically by having a large consumer base which led to widespread industrial development as entrepreneurs established companies to meet the growing demand of goods and services.
It is my considered view that Africans have failed in general to harness their formidable spending power to direct economic and political change. Africans have failed to manufacture their own goods and services and have rather chosen to voluntary hand over and transfer their consumption power to the benefit of white capital and developed economies. The reasons for lack of development in Africa's industrial base are of course numerous and political. Here I want to focus on consumption as an accelerator of economic development and emancipation.
In my books, we are victims of our own foolishness, voracity and conceit. I remember very well during apartheid times when blacks would boycott a shop or brand because those who owned the shop or brand were not acting in the interests of the common good. This power seems to have been all forgotten and it seems now "more productive" for the masses to protest, burn tires and trash things in order to get attention. What a shame because we continue to look for solutions elsewhere while in our hands and purses we have all we need.
In a conversation I held the other day, it was quite evident to me that somehow we have lost the will to influence change and have left it to the politicians to slug it out while we watch. We seem to have unfounded expectations that on day things will be alright and someone out there will solve our economic problems for us.
In my opinion, there is no power as effective, immediate and grand as purchasing power and yet we spend much of it on the so called designer labels and flashy SUV's so that others may see how we have actually abused our precious purchasing power. Let me give you a simple example, 45% of the South African population resides in the townships, the spend in Soweto alone per annum is estimated to be around R45 billion. According to a study by the University of Cape Town's Unilever Institute of Strategic Marketing in 2007, black spend then, was estimated at R335 billion compared to R235 billion of whites per annum. You can use your imagination to estimate what those numbers look like now, it's a ginormous amount. I imagine that the number is now above R400billion per annum and it is probable that 99% of it is not spent with other black businesses in the black communities. No wonder why shopping malls and the established brands have now moved into the townships -the cheese has moved into black neighborhoods and informed whites are now focusing on network marketing and buying direct using the internet because they are tired of enriching the retailers.
The fundamental difference in community standards of living between blacks and Indians for example is that the latter spend a good proportion of their money within their own communities. The same applies to the Jewish communities where it is estimated that a rand circulates at least 10 times within that community before it goes back to the bank which they probably own.
Do you know why us blacks don't do the same? It is because we have a spirit of poverty as opposed to abundance. We also don't believe in ourselves and are soon to pull each other down. A colleague of mine told me that he cannot get contracts from his friend because they would rather enrich a white man than make another black man who they know rich. Now I believe that, just try and call your black buddies or peers who are now CEO's or managers and try and do business with them.
The power we have as blacks to influence and change our economic circumstances lies in our hands but unfortunately we have become so obsessed with imported brands and technology. How can we expect others to empower us economically when we cannot even use the little that we have to make the difference that we want to see?
My message is clear; stop whining, stop blaming the system and do what you can do from where you are with the little that you have to make that difference: support your folk and put you money where your mouth is. It's time for black on black empowerment.
Vince Musewe is an economist and you may contact him on [email protected]
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