Working for Development in Southern Africa: Bridging the Gap Between Government and Business

The document examines the tensions and opportunities in the relationship between the South African government and its business sector regarding activities in Southern Africa. It highlights a domestic legacy of mistrust rooted in apartheid and ideological differences, which hinders coordinated economic diplomacy. While South African corporate expansion supports regional growth, it has also led to perceptions of 'neo-imperialism'. The paper discusses the ANC's call for a business code of conduct and recommends a 'perceptions audit', improved diplomatic skills, and increased dialogue between business and parliament to align national economic interests with regional development goals.

• South African economic growth has a significant positive impact on the broader region; an IMF study from 2005 found that every one percentage point of annual growth in South Africa results in a growth increase of between 0.5 and 0.75 percentage points in sub-Saharan Africa.
• The expansion of South African corporate activity in the region has caused negative unintended consequences, including accusations of corporate arrogance, the crowding out of local businesses, and perceptions of 'neo-imperialism'.
• The relationship between the South African government and the business sector is strained by a deep domestic legacy of mistrust and ideological fissures, partly stemming from the apartheid era and more recent political shifts since the ANC's 2007 Polokwane conference.
• The Zuma administration has prioritised economic diplomacy to facilitate strategic objectives in Africa, but the author notes that South African diplomatic personnel require significant upskilling in trade, investment, and economic matters to be effective.
• The ANC has called for a 'Business Code of Conduct in the Continent' to address issues such as corruption, child labour, and poor labour practices, though business leaders fear this could create an uneven playing field compared to new entrants, such as Chinese companies, who face less scrutiny.
• There is a significant communication gap between the South African corporate sector and parliament, with few MPs having private sector experience and business entities rarely engaging in structured dialogue with parliament on foreign policy or regional integration.

APA

Hughes, T. (2011). Working for Development in Southern Africa: Bridging the Gap Between Government and Business. South African Institute of International Affairs. https://saiia.org.za/wp-content/uploads/2012/01/Occasional-Paper-104.pdf

Chicago

Hughes, Tim. Working for Development in Southern Africa: Bridging the Gap Between Government and Business. South African Institute of International Affairs, 2011. https://saiia.org.za/wp-content/uploads/2012/01/Occasional-Paper-104.pdf.

Wikipedia

{{cite report |last1=Hughes |first1=Tim |title=Working for Development in Southern Africa: Bridging the Gap Between Government and Business |publisher=South African Institute of International Affairs |date=December 2011 |url=https://saiia.org.za/wp-content/uploads/2012/01/Occasional-Paper-104.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{hughes2011working, author = {Hughes, Tim}, title = {{Working for Development in Southern Africa: Bridging the Gap Between Government and Business}}, institution = {South African Institute of International Affairs}, year = {2011}, month = dec, url = {https://saiia.org.za/wp-content/uploads/2012/01/Occasional-Paper-104.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }