The changing face and strategies of big business in South Africa: more than a decade of political democracy
The changing face and strategies of big business in South Africa: more than a decade of political democracy
Chabane N., Goldstein A., Roberts S.Industrial& Corporate Change June 2006, Vol. 15 No. 3, Start page: 549, No. of pages: 29
Purpose – to analyze developments in South Africa’s business environment, corporate strategies and firm ownership since 1994. Design/methodology/approach – states that 1994 was the year in which the first democratic elections were held, traces the founding and histories of major companies, and describes business in the pre-1994 period has highly concentrated, linked to the mining of precious metals and diamonds, and closely associated with the National Party and government. Records the intentions of the African National Congress (ANC) regarding nationalization and dismantling of conglomerates, but notes that how this was to be achieved was not articulated. Looks at the activities of six conglomerates, documents extensive merger and acquisition activity, purchasing of foreign companies and vertical integration of domestic chains, explores the effects of relaxation of tariff and exchange controls, privatization, and legislation supporting black economic empowerment(BEE), but maintains that, despite changes in the top 100 companies, and increased foreign ownership, the principal characteristic is continuity, with only minimal changes in the largest industrials. Focuses on two conglomerates,i.e. the Anglo-American Corporation and Remgro, underlines the power of both Anglo and the owning Oppenheimer family, and details changes in its structure and chief executives, overseas acquisitions, and recent state opposition to a mining acquisition. Explains that Rembrandt is the most successful Afrikaner business, noting that the company has given more support to BEE than Anglo. Concludes that major conglomerates are even more entrenched, conceding that governance standards have improved. Originality/value – exposes the ineffectiveness of BEE.ISSN: 0960-6491Reference: 35AR555
Keywords: Conglomerates, Corporate strategy, Government policy, Mining industry, National economy, South Africa
