Senekal last week had nothing to do with solutions. It was all about politicians’ testosterone. It was all about politicians’ egos. What useful idea came out of all that heat and noise generated by all those politicians in Senekal last week? There is nothing. Nothing that makes SA a better place. Nothing that leads us to a better understanding of race relations in SA after 1994. Nothing that is a solution to farm murders – many of whose victims are poorly paid, desperate black people – or a solution to the incredibly horrendous murder and crime problem in this country.
The money and ingenuity looking for a long term home – i.e. capital that is prepared to set up bricks and mortar and businesses with global reputations to uphold – is going to be particularly cautious about deals like this one because: It exposes Black Economic Empowerment to be nothing more than a mechanism to bribe the political class – rather than what it was promised to be: a mechanism to spread the benefits of capitalism to the previously denied and disadvantaged; It acts as a massive drain on the productive employment of capital i.e. it adds so much extra costs to the normal costs of conducting whatever business you are in that the benefits of being in South Africa, as opposed to anywhere else, disappear; The kind of “money and ingenuity” that you get when your market presents such long term risks are short term specialists – the ones who make a living out of basket cases and are used to dealing with them – with their bribes and coups and political meddling. – Nic Borain on the ArcelorMittal /Imperial Crown Trading dealBACK TO TOP