Everyone's preferred phone-a-friend
22 October 2017 01:15 (South Africa)
Opinionista Fikile Mbalula

Dear Trevor, White Minority Capital is alive and well in South Africa

  • Fikile Mbalula
    Min-Fikile-Mbalula-profile-photo.jpg
    Fikile Mbalula

    Fikile Mbalula is the Minister of Police. See his Wikipedia profile

Manuel claims, “there is nothing like white minority capital”. Indeed many have said the same including the likes of liberal’s darling Moeletsi Mbeki. These statements lack vigorous intellectual thought. They are dishonest and reveal glaring dissonance among the super black elites and the masses.

Andre Odendaal, in his book, The Founders, wrote, “In 1910 a new white dominion was inaugurated as the Union of South Africa, which secured white interests including of those recently conquered, the Boers, at the expense of blacks, that formed the immediate cause of the formation of the ANC in 1912.” As Sol Plaatjie exclaimed, blacks woke up as pariahs in the land of their birth. Key phrases used by Odendaal are “white dominion” and “secured white interests”. “Dominion” is a noun describing monopoly, dominance or hegemony – “secure white interests” refers to monopolised (secure) white capital (interest). This is basic comprehension.

When the youth of the 1940s led by ANCYL’s Anton Lembede and the youth of 2010 said, “Youth action for economic freedom in our lifetime”, they were saying here stood white monopoly capital. AP Mda at the adoption of the ANC’s Programme of Action in 1949 described the South African economy as “a closed capital”.

The ANC devised the struggle for liberation into two phases, Duma Nokwe said, “First we should take over state power, stabilise it and then redistribute the wealth to our people”. Last week in Parliament I stated clearly that “we have no time to waste time” – be it over domestic violence against out women, radical economic transformation and the general socio-economic plight of our people.

Our call for Radical Economic Freedom is neither new nor nefarious. This call is also not being made lightly. We make it fully aware that white capital will do all it can to disrupt and fight back through an information war, recruiting our own, courts and other means.

When he called for “Radical Redistribution of Economic Power”, Dr Martin Luther King Jr knew the risks were high. He had long finished his “I have a dream” reconciliation policy and was then embarking, as we are, on the second phase of the civil rights movement when in Mississippi in February 1968, he said:

It didn’t cost the nation one penny to racially integrate lunch counters, it didn’t cost the nation one penny to guarantee the Negros a right to vote, but now we are dealing with issues that can not be solved without the nation spending billions of dollars and undergoing a radical redistribution of economic power.”

Therein lies the politics of our times in South Africa and broadly in the ANC.

In the heights of apartheid the ANC had a programme called “each one teach one”. This was in response to the education crisis which emanated from the racialised school curriculum and offered Africans’ existence to cheap labour for the increasingly wealthy white minority population. Many of us could not be adequately formally schooled, even in prison; I was able to gain from other prisoners in more ways then I could from formal bantu education.

Evidently class was dismissed too soon for some. Remedial class is particularly necessary for Trevor Manuel who firmly decided to abandon the poor masses for the minority’s trough. I am not sure when exactly Manuel switched, it is apparent this occurred while he served as finance minister. Indeed, he championed and caused to entrench a deep neoliberal sleeper cell amongst us. It was even hard to him to appropriate funds for HIV ARVs as 400,000 mainly Africans prematurely died, over 5-million infected, including children who later became orphans under his watch. No one asked for a consultative conference then.

Manuel claims, “there is nothing like white minority capital”. Indeed many have said the same including the likes of liberal’s darling Moeletsi Mbeki. These statements lack vigorous intellectual thought. They are dishonest and reveal glaring dissonance among the super black elites and the masses.

In the report on Strategy and Tactics at the 1969 Morogoro Conference, the ANC said; “to allow the existing economic forces to retain their interests intact is to feed the root of racial supremacy and does not represent even the shadow of liberation” – now that Manuel is in the same trough he is a denier of the existence of these economic forces the ANC identified.

The ANC has always made it plain that it fought white and imperial domination. This domination in the main presents itself culturally, politically and economically. If this does not exist, what then was Nelson Mandela speaking of in that infernal dock? Economic and political domination means someone does the dominating, the monopolising. When a minority is dominant it holds a monopoly.

Perhaps Manuel is explaining why for two decades he just did not care for our people. He failed to internalise our African claims; our hopes on him were based on something he now says “does not exist”. It was hard to finance higher education for the poor during Manuel’s dominance, land redistribution became but a dream, now we know why. As land is the economy, we may now suppose, as Terror Lekota does, that he too thinks land dispossession did not exist. The truth becomes a monopoly possession of those who have monopoly cross-media ownership like Manuel’s new bosses, the Rothschild Group.

The indispensable political reports at Morogoro said; “... in our country – more than in any other part of the oppressed world – it is inconceivable for liberation to have meaning without a return of the wealth of the land to the people as a whole. It is therefore a fundamental feature of our strategy that victory must embrace more than formal political democracy.”

The economy of this country is white; this group of mainly Afrikaner men control almost all the levers of our economy. The State-Owned Enterprises (SoEs) exist to facilitate business for this group. Our SOEs are economy enablers, currently they are enabling, in the main, minority white-owned businesses who pay our people starvation wages.

The argument “‘but Eskom or Transnet are dominant” is misleading. Eskom powers up power guzzlers like Nampak and big mines that receive mammoth discounts on their power. South Africa is rated the world’s number one cheapest electricity for industrial use.

SAA, aside from management issues, is also an economy enabler. SAA transports businessmen to airports like Kimberley at a loss to it but a gain to businessmen. No commercial airline could ever do that.

The same argument is traced throughout the SoE chain, which is often mischaracterised as dominant, and therefore there is no white monopoly or minority capital.

Credible researchers have published that since 1994, only R350-billion worth of Black Empowerment deals have been concluded to date. Now, let’s evaluate exactly what the size of the South African economy is.

We often hear that because the JSE’s market capitalisation of R5-trillion is half globally owned we should not bother looking at who owns the South African domiciled half worth R2.5-trillion at least. This is the half we look at as a 100% and it is owned by white minority capital. Although the public sector pensions own part of these white-owned firms, it does not make this excess or wealth capital. If you own a house you live in with no other house, your house is not wealth, you cannot trade that house, should you do so, and you become homeless – likewise with pension products.

Of the R1-trillion in cash hoarded by corporates at white-owned banks, none of that cash is black-owned. Of the R5.8-trillion private property (excludes agrarian and commercial land) value in South Africa, blacks own township or RDP style properties.

Take the private investment funds industry whose customer base is largely white; this industry has a cash value of R4.5-trillion.

White monopoly capital’s strategy is to cause blacks to de-focus, break apart and fight over crumbs.

It could be hard to understand this if one’s household earnings are over R100-million annually, like the Ramos-Manuel clan.

The ANC supports foreign direct investment; this is good, but that foreigners own half of the JSE illustrates the risk the majority rule is under. We are living at the mercy of external forces that are reshaping our politics through capital accumulation because the majority of this country has no means to own this very half.

No other industrialised country has more than 40% of its stock market owned by foreigners but South Africa. This speaks to the politics of global domination OR Tambo spoke of.

Our currency is dependent on young people in suits in Wall Street who, with no feeling, strike keyboards betting against the rand to make profits or when banks managed by Manuel’s family illegally manipulate rand exchange trades.

We have said at the NEC of the ANC that the rand is peculiarly politicised; perhaps the most politicised currency in the world. Manuel did nothing about that and today we know why.

White domination exists. Economic domination of black people exists. This domination emanates from a racially monopolised economy, specifically monopolised land ownership. Any person who today says white monopoly capital does not exist should explain what was the meaning of Cecil John Rhodes’ 1894 Glen Grey Act, which grabbed the land belonging to Africans and the infamous 1913 Native Land Act which effectively monopolised 93% of land for white capital’s usage leaving just 7% of arable land to the 95% African majority at the time.

The future of the ANC relies on its understanding of the question of economic dispossession of the natives and the restoration of their full economic rights.

In October 2007 at the NAFCOC AGM, SACP Secretary General Dr Blade Nzimande stated, “…we must together wage a struggle to have economic policies that must break the hold of this White Monopoly Capital over our economy.” This I agree with.

As Friedrich Engels stated, “All history has been a history of class struggles between dominated classes at various stages of social development.” Our struggle has just begun. DM

Fikile Mbalula is an ANC NEC member.

  • Fikile Mbalula
    Min-Fikile-Mbalula-profile-photo.jpg
    Fikile Mbalula

    Fikile Mbalula is the Minister of Police. See his Wikipedia profile

Get overnight news and latest Daily Maverick articles






Do Not Miss