‘Settlers and comrades’. The variety of capitalism in South Africa, 1910–2016

The complexities of business in Africa are illustrated through the case study of economic and business development of the different countries. By the time decolonisation brushed across Africa from the late 1950s, South Africa enjoyed political independence under white rule, controlling a viable economy based on mineral and industrial capitalism. This article shows the change in a powerful state-capitalist nexus from mining to the industry to ethnic or race-based ‘empowerment’. Contesting nationalisms between Afrikaners and loyal British imperial sympathisers, constituted the rationale for inward-looking economic policies for national economic development. The formation of unstable coalitions for market co-ordination managed market distortion to faci­litate the development of the leading modern industrial economy in Africa, while the rest of independent Africa experimented with central planning, socialism and state-capitalism. This study illustrates the peculiarity of capitalist development in Africa, specifically South Africa, considering the particular institutional contexts and broad business environment in which business acts strategically. South African business proactively engaged in a dynamic state/business relationship from national capitalism under minority rule, to an unstable balance of majority black capitalism, socialist worker welfare capitalism and tribal communalism. The manifestation of an unstable but unique state-business nexus involving market and non-market elements, adds innovation to the VoC framework.