Exay is an African term for friend but it refers precisely to "cape coloured" or biracial people; it's how they call themselves "buddy" or "brother." When used to refer to you by someone who isn't your buddy or brother, it can be an insult because the speaker is presuming familiarity that doesn't exist.
Hey exay/xa, you wanna get crunk on chibuku and chomba and then prang some wheels?
(Hello my friend, would you like to become highly intoxicated on cheap homemade beer and smoke too much hashish and then drive automobiles around until we crash them?)
XA is another way of writing exay.
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