Can you elaborate? When I visited South Africa, a few white people used it to refer to the non-whites. I do not know if they were just trying to be descriptive or discriminatory. Perhaps it didn't mean what I thought it meant.
"Coloured" refers to (and is used self-descriptively by) a subset of people of mixed race of generally one or more of usually British and Dutch ancestry on the "White" side, and generally one or more of various Bantu groups (mostly Xhosa, Zulu, some Ndebele, &c.) or Khoisan ancestry, and sometimes also of Malaysian or other South-East Asian ancestry (from ex-Dutch colonies).
What? 'Coloured' people also refers to a very specific subset of South Africans It doesn't mean what you think it does here.