Ten Propositions about Black Economic Empowerment in South Africa

Abstract

Black Economic Empowerment (BEE) has become one of the most high profile strategies of African National Congress (ANC) government. Yet BEE has also become highly controversial, critics arguing variously that it serves as a block to foreign investment, encourages a re-racialisation of the political economy, and promotes the growth of a small but remarkably wealthy politicallyconnected ‘empowerment’ elite. There is considerable substance to such analyses. However, they miss the point that BEE policies constitute a logical unfolding of strategy which is dictated by the ANC's own history, the nature of the democratic settlement of 1994 and the structure of the white-dominated economy. This paper seeks to unravel that logic through the pursuit of ten propositions. An overall conclusion is that while there is a strong case for arguing that BEE (or some similar programme to correct racial imbalances) is a political necessity, the ANC needs to do more to combine its empowerment strategies with delivery of ‘a better life for all’.

Commercial Agriculture inSouthAfrica since 1994: ‘Natural, Simply Capitalism’

“…The first three deals were in the Western Cape wine industry, and among an earlier wave of acquisitions by BEE investment companies that sprang up after 1994, typically closely linked with senior ANC politicians, their relatives and other associates (see, inter alios , Freund ; Southall ; Marais ). They were also a result of politically extremely complicated, murky and compromised processes of restructuring/‘reform’ of the wine industry (Williams ; du Toit et al.…”

Seducing the people: Populism and the challenge to democracy in South Africa

“…His style of politics and the content of his message appear to have reawakened the perhaps mistaken belief on the part of the masses that they have an ongoing role to play in the democratic politics of their country, voicing their grievances, protesting and demanding to be heard. The pressure is on for Zuma to come good on his promises to fight poverty and make a difference in the lives of those who have felt cheated by the post-1994 dispensation which appeared to benefit a few through black economic empowerment deals while overall levels of inequality widened (Southall 2006). The tensions will not be easily resolved.…”

NGOs, the State, and Development in Africa

“…The ruling ANC installed various programs designed to give preferential treatment to firms headed by black business people in order to establish a black presence in the heart of the economy. The result was, as Southall (2007) put it, "deployment of party stalwarts into . .…”