The buying power of SA’s LGBTI+ community tops quarter of a trillion rand, a new report shows, revealing the annual economic influence of the minority group as consumers, employees and business leaders.
The 72-page report titled Size Matters and published by the Other Foundation, quantifies the size of the LGBTI market for the first time since the 2017 estimate that pegged the value of the market at R53bn to R204bn. It polled 400 respondents, ensuring a margin of error of 4.9% and estimating the population size of the community at between 1.65% and 6%.
The survey found that 90% of the respondents were engaged in income-generating activities, with three quarters employed and the remainder as active entrepreneurs. About 44% hold managerial positions, and nearly one-third have savings exceeding R100,000. It also found that just more than 61% of the LGBTI+ individuals were socially conscious consumers, preferring businesses that demonstrate LGBTI+ inclusion.
The report has the potential to provide valuable insights for businesses to tap into the growing power of the “pink rand” and align with their broader social justice goals equality and inclusion.
“Our community contributes at least R250bn to the national economy every year. This not just a number, it represents the power of our diversity in action,” said Neville Gabriel, CEO of the Other Foundation.
“Despite the massive barriers that many still face, from subtle bias to overt discrimination, and the heavy burdens of social responsibility that many have to carry, LGBTI people are our, earning, and moving the economy in ways that deserve to be recognised.”
The survey found that 25% of respondents believed that they did not benefit from equal career opportunities compared to their non-LGBTI+ co-workers as progressive laws that prohibit discrimination based on sexual orientation collide with social attitudes, with stigmas persisting, especially in rural and destitute areas.
The report is part of larger global movement recognising the economic and social contributions of the LGBTI+ community. The global annual spending power of the LGBTQ+ consumer segment is estimated at $4.7-trillion, according to LGBTQ+ Capital, an investment firm focused on the economic potential and financial inclusion of the LGBTQ+ community.
Gabriel, in a foreword to the report, called for inclusive policies and targeted support to unlock the full potential of the LGBTI+ community, saying inclusion isn’t only a moral imperative but also smart business.
“We hope that the findings shared in this report will initiate conversations across boardrooms, government halls, and civil society platforms and inspire bold action to support greater economic participation by the LGBTI+ people — because the LGBTI+ market matters for doing good business,” Gabriel said.
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