Post-Apartheid South Africa and African Continental Integration: The Contribution of South African Multinational Corporations to Integration in Africa

ABSTRACT

This article argues that while South Africa’s post-apartheid foreign policy on Africa has largely emphasized state-led continental political and economic integration, the country’s Multinational Corporations (MNCs) have led in the practical articulation of integration as an integral part of their expansion strategies in search for increased market share and the establishment of new markets on the continent. It assesses the intersection between South Africa’s foreign policy on Africa’s integration and the role of the country’s MNCs. The article adopts a three-part juxtaposition approach to determine the convergence between South Africa’s foreign policy goal of continental integration with the case studies of expansion strategies pursued by two of the country’s MNCs namely, Standard Bank of South Africa Limited (Standard Bank) and Shoprite Holdings Limited (Shoprite). African Union member states should ensure that they design foreign policies that align the interests of MNCs with national and continental goals of integration.

KEYWORDS:

• African integration
• Intra-African trade
• African MNCs
• Standard Bank
• Shoprite

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 Beyond South Africa, Shoprite has expanded to Angola, Botswana, Democratic Republic of Congo, Ghana, Kenya, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Eswatini, Uganda and Zambia. Shoprite divested from Egypt in 2006, from Tanzania in 2014 and from Nigeria in 2021.

2 Beyond South Africa, Standard Bank has established operations in Angola, Botswana, Eswatini, Ethiopia, Ghana, Ivory Coast, Kenya, Lesotho, Malawi, Mauritius, Mozambique, Namibia, Nigeria, South Sudan, Tanzania, Uganda, Zambia and Zimbabwe.

3 Founded in 1910, the customs union consists Botswana, Lesotho, Namibia, South Africa and Eswatini.

4 SADC members are Angola, Botswana, Comoros, Democratic Republic of the Congo, Eswatini, Lesotho, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Seychelles, South Africa, Tanzania, Zambia and Zimbabwe.

5 SADC Protocol on Finance and Investment, Article 16 and Article 17.

6 COMESA members are Burundi, Comoros, Democratic Republic of the Congo, Djibouti, Egypt, Eritrea, Eswatini, Ethiopia, Kenya, Libya, Madagascar, Malawi, Mauritania, Rwanda, Seychelles, Somalia, Sudan, Tunisia, Uganda, Zambia and Zimbabwe.

7 EAC members are Burundi, Democratic Republic of the Congo, Kenya, Rwanda, South Sudan, Tanzania and Uganda.

8 Part III of the TFTA specifically provides for trade liberalization, which is further articulated under Article 10 which provides for the elimination of non-tariff barriers while Articles 21 and 26 respectively commits member states to facilitate trade cooperation, and strengthen cross-border payment systems and capital markets development.

9 ECOWAS consists of Benin, Burkina Faso, Cabo Verde, Cote d’Ivoire, The Gambia, Ghana, Guinea, Guinea-Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. Standard Bank has operations Ghana, Nigeria and Ivory Coast, while Shoprite had, until 2021, operations in Nigeria and Ghana. It has since divested from Nigeria.

10 Other roles of the state according to Tsie’s (1996) are market-creation, market-correcting, market-conforming and market supplanting.

11 MTN operates in 16 countries in Africa including South Africa. The other African countries are: Nigeria, Ghana, Uganda, Rwanda, Zambia, South Sudan, Cameroon, Ivory Coast, Benin, Guinea-Conakry, Congo (Brazzaville), Liberia, Guinea-Bissau, Botswana and Eswatini.

12 Famous brands owned fast-food outlets such as Steers and Wimpy.

13 According to Tongaat Hulett (http://www.huletts.co.za/ops/mozambique.asp) the company acquired interests in two mills and cane estates in Mozambique in 1998, a 75% share which was later increased to 85% in Açucareira de Mozambique (Mafambisse) and 49% share which was later upgraded to 88% in Açucareira de Xinavane (Xinavane). The state owned the remaining shares in the companies.

14 Of the US$2 billion, US$1.6 was raised in Nigeria and denominated in the local currency Naira. The balance would be raised in international markets.

15 Adopted at the African Union’s 50^th anniversary, Agenda 2063 – the continent’s aspirational developmental path, committed the continent to pursue post-colonial development by, among other things, continental economic integration and inclusive development of its peoples.

16 Shoprite did not consistently disclose the value and country of origins of products in its annual reports.