Racial capitalism, ruling elite business entanglement and the impasse of black economic empowerment policy in South Africa

Abstract

The high rate of inequality in South Africa is rooted in colonial dispossession and racial exploitation, and still runs primarily along the racial divide. Policy initiatives taken to redress past economic injustices through the black economic empowerment (BEE) have failed to bring economic transformation. Using the twin lenses of epistemic violence and racial capitalism, this study analyses how entangled interests aimed to co-opt the ruling party elite by the apartheid-era business elite led to the BEE impasse. The pervasiveness of cultural alienation in BEE failure suggests that a shift to restorative justice is necessary to break from the impasse.

Appraising Executive Compensation ESG-Based Indicators Using Analytical Hierarchical Process and Delphi Techniques

“…Geza et al (2022) lamented the higher unemployment among the youths in South Africa, which they suggest companies can contribute to resolving. On the other hand, the dominance of white males in both the boards of listed companies as well as in private companies generally has been highlighted as something that needs to be changed (Adelekan and Bussin 2018;Habiyaremye 2022). The findings of this study are beneficial to the remuneration committees, executive compensation consultants and policymakers as they provide insights in what pillars of the ESG model and which indicators within each pillar should be prioritised in designing the executive compensation plans.…”

“…When considering the social pillar, South Africa is among the most unequal societies in the world, with a Gini-coefficient above 0.6 (Rathbone 2022). Habiyaremye (2022) postulated that the level of inequality is partly ascribed to the past injustices of colonialism and apartheid, where the majority of people, particularly Blacks, were excluded from participating in the mainstream economy. As a result, unemployment, poverty and inequality are the social ills largely seen in the Black majority.…”

“…As a result, unemployment, poverty and inequality are the social ills largely seen in the Black majority. The corporate sector still reflects this painful past, with the ownership and management still in the hands of the White minorities (Gyapong and Afrifa 2019;Habiyaremye 2022). In this regard, diversity, inclusivity, equity, and supporting the marginalised and previously disadvantaged people by prioritizing them in procurement and employment are social and governance issues that the corporate sector is expected to contribute to as part of corporate citizenship.…”

Class Capitalism in a Post-Liberation State: Democratic South Africa’s Black Diamonds

“…In today's South Africa this elite income network transpired into a small multiracial network, which has gained access and entry into the economy, and this has led to greater accumulation and wealth for this income group (Marais 2001, Devey and Møller 2002, Habiyaremye 2022. Coincidentally it is this small, privileged group that has become powerful and those excluded remain marginalised and the redistribution of power provides a sturdy system (Basset 2008: 185, Bhorat et al 2020.…”