Social capital versus social pressure: An exploration of how black tax shapes peer relationships, family dynamics, and personal identity
Phoke Alpha Rakgwata · Rendani Tshifhumulo ORCID ↗
International Journal of Business Ecosystem & Strategy · 2026 · Vol. 8 / Issue 2 · 258-267
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Observed 21 Oct 2026, 00:14 UTC
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Abstract
This article examines the impact of Black Tax on peer relationships, family dynamics, and personal identity among young Black professionals in the Mopani West Education District, Limpopo, South Africa. Black Tax refers to the monetary and social contributions made by first-generation earners to sustain extended family members, a practice shaped by historical dispossession and systemic racial inequality. The study is framed within Social Capital Theory and Structural Functionalism, employing a qualitative phenomenological design. Data were collected through semi-structured in-depth interviews with five purposively selected participants and analysed using Braun and Clarke's (2021) six-step thematic analysis framework. The findings reveal five interrelated themes: conceptual understanding of Black Tax, proportional financial experiences, psychological effects, the role of family background in shaping financial responsibility, and the tension between family support and personal growth. The study demonstrates that Black Tax simultaneously functions as a source of social capital, reinforcing communal solidarity, Ubuntu values, and intergenerational support, and as a source of social pressure that constrains personal savings, investment, and psychological well-being. These findings contribute to a growing body of literature on informal financial obligations in post-apartheid South Africa and carry implications for policy interventions in financial literacy, mental health support, and intergenerational dialogue.
Keywords: {'name': 'Black Tax; Social Capital; Social Pressure; Family Dynamics; Peer Relationships; Psychological Well-being; Identity Formation; South Africa'}
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Phoke Alpha Rakgwata
University of Venda
Rendani Tshifhumulo
University of Venda
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