More than two decades ago the South African government put in place a policy designed to redress racial imbalances in the country’s economy. But, as I suggest in a recent paper, the policy – known as broad-based black economic empowerment) – has been hijacked and repurposed by individuals and factions within the ruling African National Congress (ANC) for the purpose of corruption and self-enrichment. 

This was particularly noticeable during the COVID pandemic. The government’s Special Investigating Unit found that corruption or fraud accounted for 66% of all national funding set aside for the procurement of personal protective equipment. 

I argue that the empowerment policy has been corrupted by officials appointed by the ANC and has been used to perpetrate economic crimes. I contend that the policy, as an ideological vehicle, was repurposed for self-enrichment. 

I argue that the repurposed policy benefits only a tiny group, amid widespread unemployment, economic stagnation and poverty.

The policy: how it was envisaged

The original intention of the black economic empowerment policy to transform the South African economy by enhancing the participation of black people. The aim was to erase systemic racist inequities that had built up over centuries.

The hijacking

In my paper I show how vested interests in the South African government used the COVID-19 pandemic as a form of disaster capitalism. This is a term coined by the Canadian social and political activist Naomi Klein. By latching onto natural disasters, such as COVID-19, rich industrialists “remake” the scene, resulting in great profits for themselves. Klein explains:

Perfect storm

Economic redress is clearly justified in view of South Africa’s failed project of economic redistribution – one of the ANC’s election promises in 1994. But the vast majority of South Africans of all races are excluded from the benefits as corruption has taken hold.