Why 'Anglo licks the ANC's boots': Globalization and state-capital relations in South Africa

African Affairs

Volumn 107, Issue 428, 2008, Pages 333-360

  Iheduru, Okechukwu C ^a  

^a ARIZONA STATE UNIVERSITY   (United States)

Author keywords

[No Author keywords available]

Indexed keywords

BLACK POPULATION; CAPITAL FLOW; CAPITAL MARKET; EMPOWERMENT; EQUITY; FOREIGN DIRECT INVESTMENT; GLOBALIZATION;

AFRICA; SOUTH AFRICA; SOUTHERN AFRICA; SUB-SAHARAN AFRICA;

EID: 46249114896     PISSN: 00019909     EISSN: 14682621     Source Type: Journal    
DOI: 10.1093/afraf/adn037     Document Type: Article

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53. Spieß, ' "Betwixt and between" ', p. 140.
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65. Ben Fine and Zav Rustomjee, South Africa's Political Economy: From minerals-energy complex to industrialization? (Christopher Hurst, London, 1996).
66. See Antoinette Handley. 'Business, government and economic policymaking in the new South Africa, 1990-2000'. Journal of Modern African Studies 43. 2 (June 2005). pp. 211-39.
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68. and Scott D. Taylor, Business and the State in Southern Africa: The Politics of economic reform (Lynne Rienner, Boulder, CO, 2007).
69. Ralph Haman, Sanjeev Khaaram, and Shannon Rohan, 'South Africa's charter approach to post-apartheid economic transformation: Collaborative governance or hardball bargaining?', Journal of Southern African Studies 34, 1 (March 2008), pp. 21-37.
70. While these authors focus on sector charters in mining and finance, they analyse government-business relations 'in terms of collaborative, governance'.
71. See Iheduru, 'Black economic power'. pp. 6-8.
72. Heribert Adam. Fredrik van Zv1 Slabbert and Kogila Moodley. Comrades in Business: Post-liberation politics in South Africa (TafelberL, Press, Cane Town, 1997). Roger Southall, 'The ANC and black capitalism in South Africa'. Review of African Political Economy 31. 100 (2004), no. 313-28,
73. Lawrence Schlemmer, 'Lost in transformation? South Africa's emerging African middle class' (Occasional Paper for the Centre for Development and Enterprise, Johannesburg, No. 8, CDE Focus, August 2005.).
74. See South Alfrica's Economic Transformation: A strategy for broad-based black economic empowerment (Department of Trade and Industry, Pretoria, 2004).
75. Others, however, admire and celebrate their accomolishments. See Chia-Chao Wu, Sherilee Bridae. Sylvia Clow-Wilson and Vuyo Jack, Trailblazers: Recognizing South Africa's black pioneers and prodizies (Double Storev Publishers, Johannesburg, 2007).
76. Draft Codes of Good Practice on Black Economic Empowerment (Department of Trade and Industry, Pretoria, 2004).
77. Barrie Terblanche, 'ABC of BEE for small business', Mail & Guardianonline 9 October 2006. (3 November 2006).
78. See also Janisch. Keep in Step and Duma Gqubule, Making Mistakes, Righting Wrongs: Insights into black economic empowerment (Jonathan Ball Publishers, Cam Town, 2006), who analyse the practical implications of the Act and Codes for specific business units.
79. It is estimated that between 100,000 and 600,000 South African businesses will require 'verification certificates' within 12 months of the entry into force of each sectoral charter, at the cost of R5,000 a certificate, this could amount to R1.5 billion a year. assuming that 50 oercent of these businesses comply (Economist, 8 April 2006).
80. Recent laudable attempts at sectoral analysis include Grace Mohamed and Robert Simon, 'Weak links in the BEE chain? Procurement, skills and employment in the metals and engineering industries', Journal of Contemporary African Studies 26, 1 (January 2008), pp. 27-50;
81. Robert B. Horwitz, W. Currie, et al., 'Another instance where privatization trumped liberalization: The politics of telecommunications reform in South Africa - a ten-year retrospective', Telecommunications Policy 31, 8-9 (September/October 2007, pp. 445-62
82. Stefano Ponte and Lance van Sittert, 'The chimera of redistribution in post-apartheid South Africa: "Black economic empowerment" (BEE in industrial fisheries', African Affairs 106, 424 (July 2007), pp. 437-62;
83. Gavin Williams, 'Black economic empowerment in the South African wine industry', Journal of Agrarian Change 5, 4 (October 2005), pp. 476-504;
84. and Andries du Toit, 'Deracializing exploitation? "Black economic empowerment" in the South African wine industry', Journal of Agrarian Change 8, 1 (January 2008), pp. 6-32.
85. Khehla Shubane and Colin Reddy, BEE Deals 2007: Empowerment and its critics (The BusinessMap Foundation, Johannesburg, 2007), p. 14.
86. Financial Mail (Johannesburg), 19 January 2007.
87. Shuhane and Reddy, BEE Deals 2007, p. 14.
88. City Press Business (Johannesburg), 4 November 2006.
89. See 'The good ... BEE deals put the buzz back into acquisitions market', The Times (Johannesburg), 18 May 2008; http://www.thetimes.co.za/ PrintArticle.aspx?ID=768094 (21 May 2008).
90. McGregor, Who Owns Who, p. 87.
91. Moeletsi Mbeki, 'How SA kissed genuine redistribution goodbye'. Sunday Times, 4 March 2007, (6 March 2007).
92. Bill Freund, 'South Africa: The end of apartheid and the emeraence of the "BEE elite"', Review of African Political Economy 34, 114 (December 2007) also doubts that this elite has the sense of direction to pursue an industrializing economic agenda; neither are their instincts necessarily democratic.
93. Patrick Waduka, 'Empowerment cost top companies R40 billion in 2002'. Business Day, 6 August 2004.
94. Andrew McNulty, 'Mind over money: SASOL must ease the tension', Financial Mail, 10 December 2004;
95. Sven Lünche and Caroline Southey, 'Sasol frontal wars: Cox delivers solid financial results, but that's not enough in SA today', Financial Mail, 1 April 2005.
96. Michael Spicer, 'Corporate responsibility: Times they are a-changin' for business', Business Day, 8 March 2006.
97. See also Building the Nation: A business contribution (Business Leadership South Africa, Parktown, 2007.), which articulates and affirms this business-government corporatist order. Business Leadership South Africa (formerly South African Foundation) is an association of South Africa's 60 largest corporations and TNCs with significant presence in the country, founded in 1959: Spicer, a former executive director of Anglo American, is currently its chief executive officer.
98. The Brenthurst Initiative, South Africa: Our nation delivers (The Brenthurst Initiative, Johannesburg, 2003).
99. Bill Spindle, 'South Africa: Black investment gets renewed push', Wall Street Journal, 18 November 2005, pp. A1, A8.
100. Patrick Waduka, 'Business battles for ear of the president'. Business Day. 10 August 2004 at (9 September 2004).
101. Phumzile Mlambo-Ngcuka, 'On course for accelerated and shared growth', Foreign Affairs 86, 1 (January/February 2007), p. 56.
102. Grant Thornton, International Business Owners Survey 2006. (27 March 2007).
103. Iheduru, 'Black economic power'. pp. 10-12
104. SAPIA Annual Report 2006 (South African Petroleum Industry Association, Cape Town, 2006). pp. 26-9, 34-46.
105. The lucrative, protected, and heavily subsidized market continues to attract new entrants. For instance, Supergroup Commercial Vehicles, Isuzu Truck SA, Volkswagen Commercial Vehicles SA, and China Auto Manufacturers joined NAAMSA between 2006 and 2007. Renault of France will start building cars in South Africa in 2009, putting more pressure on an already overcrowded market. See 2007 NAAMSA Annual Report (National Association of Automobile Manufacturers of South Africa, Cane Town, 2007).
106. Maylene Damoense and Alan Simon, 'An analysis of the impact of the first phase of South Africa's motor industry development programme (MIDP), 1995-2000', Development Southern Africa 21, 2 (Jue 2004), pp. 251-69.
107. See Martin Kaggwa, Anastassions Pouris, and Jasper L. Steyn. 'South African government's support of the automotive industry: Prospects of the productive asset allowance', Development Southern Africa 24 5 (December 2007), pp. 681-91.
108. William Gumede. 'Top-flight advisors to raise SA's investment rating', Financial Mail, 11 February 2000.
109. Mail & Guardianonline, 24 August 2006.
110. See 'Govt rescue plan for Eskom to cost R60bn'. Mail & Guardianonline 20 February 2008; www.mg.co.za (23 February 2008).
111. See Lipton, Capitalism and Apartheid; and Duncan Innes, Anglo American and the Rise of Modern South Africa (Ravan Press, Johannesburg, 1985).
112. Charlotte Matthews, 'Mega-thinking: Anglo blazes a trail for BEE deals', Business Day, 25 October 2005.
113. Michael Spicer, interview. Johannesburg, 22 March 2001.
114. Alec Russell, 'A busy BEE on SA empowerment front', Financial Times (London), 1 October 2007.
115. See also Gareth Tredway, 'Anglo goes BEE under pressure', 1-Net Bridge, 12 February 2007 and 'Anglo CE, govt discus "stand-off"', 1-Net Bridge, 29 January 2007.
116. Spindle, 'Black investment gets renewed push'.
117. Ben-Porat, 'Business and peace,' p. 43.
118. Robert Gilmour, 'Food retailers: Appetite for more'. Financial Mail 1 September 2005;
119. and Sasha PlantNna. 'Case study 2: The retail industry: no large deals yet'. Financial Mail 16 November 2007. (15 November 2007).
120. See Mail&Guardianonline, 21 May 2007.
121. Carol BissekeS, 'Case study 2: Clothing industry: set back - again', Financial Mail, 27 July 2007, (27 July 2007).
122. Brendan Ryan. 'Mining - crunch time for new law'. Financial Mail Top Companies 2007, June 2007. .
123. Linda Ensor, 'New-look Royalties Bill slashes tax on miners', Business Day, 12 October 2006.
124. Shubane and Reddy, BEE Deals 2007, p. 14.
125. Alec Russell, 'De Beers strips conflict from S. African diamond trade', Financial Times, 19 February 2007;
126. Tom Nevin, '"Sensible deal" gives blacks slice of De Beers', African Business 315 (December 2005), pp. 50-1.
127. Business Day, 15 March 2007.
128. See Shinhua Liu, 'International cross-listing and stock pricing efficiency: An empirical study', Emerging Markets Review 8, 4 (December 2007), pp. 251-63;
129. Antoine van Agtmael, The Emerging Markets Century: How a new breed of world-class companies is overtaking the world (Free Press, New York, 2007).
130. See Michael A. Hitt, Laszlo Tihanyi, Toyah Miller, and Brian Connelly, 'International diversification: Antecedents, outcomes, and moderators', Journal of Management 32, 6 (December 2006), pp. 831-67.
131. See Caroline Southey. 'South Africa exempts foreign groups on black empowerment', Financial Times (London), 15 December 2006.
132. For a regional application, see Raph Hamann, Daisy Kambalame, Sean DeCleene and Nkosithabile Ndlovu, 'Towards collective business action and cross-sector collaboration in responsible competitiveness clusters in southern Africa', Development Southern Africa 25, 1 (March 2008), pp. 99-118.
133. I am grateful to one of the anonymous reviewers for pointing this out as an area worthy of future research.
134. See Deborah Solomon. 'Foreian investors face new hurdles across the globe'. Wall Street Journal, 6 July 2007.
135. Dani Rodrik, Making Openness Work: The new global economy and developing countries (Overseas Development Council, Washington, DC, 1999).
136. Rob Rose 'Empowered firms do better, says study'. Business Day, 8 November 2006 (http://www.businessday.co.za/Articles/ TarkArticle.aspx?ID=2354100 (27 March 2007).
137. Several recent works have documented the rapid rise in the number of black middle class in terms of income, purchasing power, asset ownership, as well as employment in the supervisory, managerial, technical, scientific, and artistic field. See Iheduru, 'Black economic power'. pp. 15-19;
138. Roger Southall, 'The ANC and black capitalism in South Africa'; Carol Bisseker, 'Black middle class: A second consumer revolution envisaged as black middle class comes of age'. Financial Mail 21 April 2006;
139. Kgomotso Nyanto, 'South Africa: The coming of the black middle class', New African (April 2006), pp. 28-9;
140. Khehla Shubane and Colin Reddy, BEE and the Black Middle Class (The Business Map Foundation, Johannesburg, 2007). 106.
141. Jim Sutcliffe, 'BEE fuelling economic revolution'. 29 May 2006, (http://www.southafrica.info.com); (27 November 2006).
142. See Stefan Andreasson, 'The African National Congress: "predatory liberalism", black empowerment and intra-alliance tensions in post-apartheid South Africa', Democratization 13, 2 (April 2006), pp. 303-22;
143. and Jo Beall, Stephen Gelb, and Shireen Hassim, 'Fragile stability: state and society in democratic South Africa', Journal of Southern African Studies 31, 4 (December 2005). pp. 681-700.
144. See Carol Paton. 'Policy under Zuma: Trouble ahead', Financial Mail 30 November 2007;
145. 'The lunacy of a Zuma presidency', Financial Mail (Editorial Opinion), 7 March 2008, (11 March 2008).
146. See Barry Bearak and Celia A. Dugger, 'South Africans take out rage on immigrants', New York Times, 20 May 2008.