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

This research paper by the South African Institute of International Affairs (SAIIA) examines the relationship between the South African government and the private sector regarding economic activity and development in Southern Africa. It argues that while both parties share an interest in regional stability and growth, their efforts are hindered by a domestic legacy of mistrust and ideological differences. The author explores the role of 'economic diplomacy' and the proposal for a business code of conduct to align corporate behavior with national developmental goals.

• South African economic growth has a significant positive impact on the broader region; a 2005 IMF study 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 led to negative perceptions and unintended consequences, including accusations of 'neo-imperialism', the crowding out of local businesses, and claims of managerial arrogance and chauvinism in employment practices.
• The relationship between the South African government and the business sector is strained by a deep domestic legacy of mistrust, rooted in the apartheid era and exacerbated by ideological differences, particularly since the ANC's 2007 Polokwane conference.
• Under the Zuma administration, 'economic diplomacy'—the use of policy and strategy to facilitate strategic objectives in Africa and globally—has become a priority. This includes promoting regional integration, engaging with NEPAD projects, and managing the Southern African Customs Union.
• The ANC has called for the creation of a 'Business Code of Conduct in the Continent' to address issues such as corruption, child labour, and poor labour practices. However, business leaders fear such a code could create an uneven playing field, as they already adhere to standards like the UN Global Compact and the King III Code of Corporate Governance, while new entrants (such as some Chinese companies) may not.
• 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} }