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- Business
- IOL News
How ANC's collusion with big businesses undermines transformation
Nco Dube a political economist, businessman, and social commentator. Image: Supplied South Africa's post-apartheid journey has been marked by a bold constitutional promise: to dismantle the economic structures of racial privilege and build a society where the black majority can share in the country's wealth and opportunities. Central to this promise are the empowerment laws, Black Economic Empowerment (BEE) and Affirmative Action (AA), crafted to drive economic inclusion and redress decades of exclusion. Yet, nearly three decades on, the slow pace of transformation and the growing backlash against these laws reveal a darker reality: a coordinated agenda, both local and global, to halt transformation, preserve white privilege, and enrich a narrow elite. At the heart of this crisis lies a deeply troubling collusion between big business and ANC elites. A symbiotic relationship that has subverted the original intent of empowerment laws, turning them into tools for elite enrichment rather than broad-based economic justice. The Promise and the Betrayal of Empowerment When the ANC was unbanned in 1990 and South Africa embarked on its democratic journey, the vision was clear: to dismantle apartheid's economic legacy and create a more equitable society. BEE and AA laws were designed to open doors for black South Africans through ownership, management, employment equity, and skills development. There have been pockets of progress. Black ownership and representation in certain sectors have increased, and a black middle class has emerged. Some black entrepreneurs have thrived, and certain companies have made genuine strides in employment equity. But for the ordinary black South African, the man on the street, these gains have often been invisible or out of reach. Poverty, unemployment, and inequality remain entrenched, and the benefits of transformation have been captured by a small, politically connected elite. This failure is no accident. It is the product of systemic corruption, incompetence, and a political will that has been fatally compromised by the very leaders entrusted with delivering transformation. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The Symbiotic Relationship Between Big Business and ANC Elites Since the unbanning of the ANC, a problematic alliance has formed between big business and ANC political elites. White monopoly capital, anxious to protect its interests in the new dispensation, extended lucrative BEE deals to ANC insiders. This was not broad-based empowerment, it was a transactional pact: business secured access to government contracts, regulatory favour, and influence, while ANC elites gained wealth and power. This arrangement has had devastating consequences for genuine transformation: Elite Enrichment Through Selective BEE Deals: Instead of empowering the masses, many BEE deals were structured to benefit a narrow group of ANC-connected individuals. Shares, directorships, and business opportunities were handed to political insiders, creating a black elite that often mirrored the exclusivity of the apartheid-era white elite. The majority of black South Africans saw little direct benefit from these deals. Empirical evidence shows that many beneficiaries of these deals were ANC apparatchiks, with the majority of black South Africans seeing little direct benefit. Board Appointments and Political Influence: At least 56 ANC politicians have held directorships in major JSE-listed companies, blurring the lines between political power and corporate governance. This overlap ensured that business interests were protected and that policies favoured entrenched elites rather than broad economic inclusion. Research shows a significant overlap between ANC politicians and the boards of major JSE-listed companies. Many of them holding multiple directorships across a wide array of companies. This integration allowed big business to secure their interests by aligning with politically influential individuals, ensuring favourable treatment and policy influence, rather than driving genuine transformation. Fronting and Window-Dressing: Many companies engaged in fronting, appointing black individuals to nominal positions to meet BEE requirements without transferring real control or economic benefit. This practice allowed companies to access government contracts and benefits fraudulently, undermining the integrity of empowerment laws. While real control and benefits remain with the original (often white) owners. Examples include listing low-level black employees as company directors without their knowledge or creating side agreements that strip black shareholders of real power. State Capture and Policy Manipulation: The alliance between business and ANC elites facilitated state capture, where government resources and policy were manipulated to serve private interests. The mutually beneficial relationship between business and ANC elites has led to 'state capture,' where business interests influence legislation and procurement processes for their own benefit, often at the expense of the broader public. This has included shaping policies to favour certain companies, securing lucrative government contracts, and manipulating regulatory frameworks to protect established interests. The Bosasa scandal, for example, involved manufacturing BEE credentials and funnelling money to the ANC through corrupt tender processes, with cash bribes and fraudulent invoicing used to secure government business and support election campaigns. This collusion has transformed empowerment laws from instruments of justice into mechanisms for elite enrichment and preservation of privilege. The focus on enriching a politically connected elite, rather than fostering broad-based participation and economic inclusion, has led to widespread public disillusionment and persistent inequality. The original vision of BEE as a tool for mass empowerment has been subverted by collusion between big business and ANC elites, resulting in a narrow base of beneficiaries and limited progress for the majority. The Global Rightward Shift and the Anti-Transformation Agenda Adding fuel to the fire is the global political climate. The rise of right-wing populism in the United States and elsewhere has emboldened anti-transformation forces in South Africa. Figures like Donald Trump and Elon Musk have amplified narratives of white victimhood, including the false and dangerous 'white genocide' myth targeting South Africa. White interest groups such as the Democratic Alliance (DA), Solidarity, and Afriforum have seized this moment to push back against transformation. They cloak their agendas in rhetoric about 'meritocracy' and 'non-racialism,' but their true aim is to preserve apartheid-era privileges and slow the pace of change. Meanwhile, as the ANC faces potential electoral decline, white monopoly capital is already seeking new political partners to maintain its influence, regardless of who governs. The anti-transformation agenda is thus both a local and international phenomenon, threatening to roll back the hard-won gains of the past three decades. Successes, Failures, and the Road Ahead It is important to acknowledge the successes. There are black entrepreneurs, professionals, and leaders who have leveraged empowerment laws to build businesses and create jobs. Some sectors have made genuine progress in diversifying ownership and management. But these successes are exceptions, not the rule. The systemic failures of corruption, elite capture, fronting, and state capture have undermined the transformative potential of empowerment laws. The struggle over South Africa's empowerment laws is a struggle for the soul of the nation. Will the country continue down a path where transformation is hollowed out by corruption and elite collusion, or will it reclaim the constitutional imperative to build an inclusive economy for all its people? The stakes could not be higher.
IOL News
24-06-2025
- Politics
- IOL News
Reclaiming the true meaning of South Africa's public holidays
Nco Dube a political economist, businessman, and social commentator. Image: Supplied South Africa's public holidays are more than just days off work or school; they are markers of our nation's complex and often painful history. Since 1994, many holidays have been renamed as part of the country's reconciliation process, with the intent to foster unity and inclusivity. However, this well-meaning approach has, in some cases, diluted the original significance of these days, a significance deeply rooted in the struggles, identities, and histories of specific communities. It is time to critically reconsider whether some of these holidays should revert to their original names and meanings, not to sow division but to honour the full truth of our past. Beyond Heritage Day: A Broader Reflection on Renamed Holidays Heritage Day's transformation from Shaka Day into a celebration of diverse cultures is a prime example. While embracing South Africa's cultural plurality is important, restoring Heritage Day's focus on traditional leadership and heroic figures such as Shaka, Sekhukhune, Modjadji, and other warrior kings from various tribes would reaffirm the historical pride and resistance of black South Africans. These leaders symbolise resilience and identity that were systematically undermined during colonialism and apartheid. But the argument extends far beyond Heritage Day alone. Consider the renaming of Sharpeville Day to Human Rights Day, or Soweto Day to Youth Day. The original names directly referenced specific, pivotal events in the anti-apartheid struggle, events that shaped the national consciousness and the fight for freedom. By broadening these commemorations, the sharp, focused remembrance of those sacrifices risks being lost. Similarly, the Day of Reconciliation, formerly Dingane's Day or Day of the Vow, seeks to balance conflicting histories but sometimes glosses over the brutal realities of colonial conquest and apartheid oppression. The Unequal Burden of Reconciliation A critical, often overlooked dimension of this debate is the emotional and historical burden placed on black South Africans. Many feel that in the name of reconciliation, they were expected to make disproportionate concessions, offering forgiveness and embracing a narrative of unity, while those who once oppressed them have largely been spared from confronting the full weight of their actions. The renaming and reframing of holidays can serve as a form of historical cushioning for former oppressors, allowing them to avoid facing uncomfortable truths about their role in systemic subjugation. This dynamic creates an imbalance: black communities, who endured generations of oppression, are called upon to move forward and unify, yet the former oppressors are often shielded from the discomfort of genuine reckoning. The broad, sanitised names of holidays sometimes enable a collective forgetting or minimising of apartheid's harsh realities, undermining the very justice and acknowledgement that true reconciliation requires. Honouring History Through Honest Commemoration Restoring original holiday names and meanings is not about nostalgia or exclusion; it is about truth-telling and respect. It is about ensuring that the sacrifices of those who fought against oppression are remembered with the specificity and gravity they deserve. It is about acknowledging the distinct histories of South Africa's diverse peoples without erasing or diluting them in the name of unity. For example, reclaiming the Dingane's Day (Day of the Vow) original context alongside its current role as Day of Reconciliation would allow South Africans to engage honestly with the complex history of the Voortrekkers and Zulu peoples, recognising both conflict and the ongoing journey toward unity. Similarly, reviving Sharpeville Day as a stark reminder of police brutality and resistance would deepen the meaning of Human Rights Day.
