Sean McLaughlin | Contributing Author | Free Market Foundation | mail me |

There is a rare opportunity to right a lot of South Africa’s wrongs in one go. Corruption and unemployment are two major roadblocks.

Permit me to explain how they can be simultaneously addressed within the current administration. I suggest an amnesty largely on the African National Congress (ANC’s) past wrongdoing in office in return for liberalisation of labour laws. This may be for a bit further down the line.

Futuristic citations here are hypothetical plays on how the interactions could unfold.

Many in the ANC have engaged in acts of corruption during its time as the dominant party. It is risky, then, for the centrist and former opposition parties – including the Democratic Alliance (DA) – to now be partnering with the ANC, as revelations on past malfeasance continue to trickle out. This risk overwhelming the ANC; the DA can pre-empt this broker an arrangement.

Effectively, the DA suggests that said individuals are not pursued, on the condition of full disclosure. In return, the ANC agrees to lend its support to ending harmful labour market policies, and hands ministries concerning labour to the DA.

Productive horse trading

In light of much evidence, we propose an amnesty, around wrongdoing in office from all political parties, from 1994 to 2027. We also call on white collar crimes committed in the private sector to be disclosed.

Individuals are encouraged to fully cooperate with authorities under section 105A of the Criminal Procedures Act to disclose their past malfeasance. Those who do so may be granted amnesty. This will save an inordinate amount of time and resources, from both the public and private sector.

It may well be the case that certain ANC officials are reluctant to concede power in various corners of government, fearing what the incomers may uncover.

Some counter that the ANC would oppose such an arrangement that would demonise the party. It should therefore include all political parties and private sector white collar crimes, branding it not only as an anti-ANC project. This could be a pressure valve if politicians losing their jobs refrain from inciting violence and infighting to cover it up.

A downsized ANC at 25% is preferable to implosion. It would soften the party’s hard landing, avoiding the divisive consequences of extensive prosecutions, damaging social cohesion in an ‘us and them’ mentality. The ANC symbolises freedom to so many.

In 2027 the DA would write:

The country is in a difficult position. We do not think it is productive to doggedly hound individuals that are now communicating with authorities. Let us move forward.

Many will claim looters are getting away scot-free. Yet, post-liberation politics is difficult. By the standards of African liberation movements which have turned their countries into tyrannical petrostates, the ANC is one of the better ones. It accepted defeat relatively well. In return, SA’s labour market sees a revamp.

Among the changes in the 2027 cabinet reshuffle… the DA will now be appointed the ministries of Trade and Industry (T&I) and Labour… All laws regarding Black Economic Empowerment (BEE), [mandating black ownership in businesses], will be repealed. Instead, we are creating a fund for black entrepreneurs – a Black Opportunities Fund (BOF). We are launching a full review into labour market regulation.

With the world’s highest unemployment at 33%, SA’s labour market is not working. As barriers to entry for employment have risen, so too has unemployment. That is the biggest retort to the ANC’s leftist allies in the tripartite alliance of the Congress of South Africa Trade Unions (COSATU) and the South African Communist Party (SACP) who will inevitably cry foul.

The old way has come to a natural end

The President has the ability to convince these waning entities that the old way has come to a natural end. The miraculous patience of SA’s population may not last another generation unless people can go to work.

On the matters of obstructive labour policies, author Frans Cronje writes in his 2020 book ’The Rise or Fall of South Africa’:

The Labour Relations Act of 1995 …gives unions immense powers including the right to demand close shop agreements … it significantly deters job creation … It pushes small business into having to retrench their staff… Countries with positive experiences of the minimum wage tend to set the wage at around half of the median wage. SA has set it at the same level as the median wage, which has never been done successfully anywhere else in the world.

This would not be callous Thatcherisation. It would merely remove some of the most unfriendly labour codes anywhere in the world and place SA on par with rest of Africa. That should be communicated.

It would also unleash an emerging world tsunami of job growth and entrepreneurialism, from Eastern Cape car manufacturing to Durban’s Kombucha exports, and Limpopo eco-tourism.

Boosting tax receipts, part of the horse trading could include a Job Seeker’s Allowance, means-tested on proof of searching for work, and phased in as the unemployment rate comes down.

Both parties come out as champions of the newly uplifted middle.

Forward

Earlier in 2024, I interviewed Wayne Duvenage, CEO of transparency NGO OUTA.

On an amnesty, he asserted:

This could take the form of ‘Truth and Reconciliation’ style hearings. Immunity in return for full divulgence … The international community could be involved in funding it, it would be seen as aid … to get the country on a corrected … path again … I think it would have to be mapped out and oversight conducted by trusted international, independent entities.

SA brims with civil society groups, private and public investigators that could assist. Financial rewards could be given to whistle-blowers.

In other examples, Nigeria’s whistle-blower protection policies have recovered much stolen public funds. Whistle-blowers receive financial rewards, encouraging more to come forward.

Brazil’s Lava Jato (Operation Car Wash) was the emerging world’s most extensive investigation into money laundering and bribery. Many business executives and politicians were granted leniency in exchange for cooperation. By 2021, this had led to over 200 convictions and recovered around USD 3bn in illicit funds. Changes in corporate governance provided greater accountability in both government and business.

All of this shows how the country’s two largest parties can reach win-win arrangements. And the biggest beneficiaries of all would be those who elected them.

Related FAQs: Reconciliation and nation-building in South Africa

Q: What is the significance of reconciliation and nation-building in democratic South Africa?

A: Reconciliation and nation-building are crucial in democratic South Africa to heal the wounds of the apartheid era and build a unified society that includes all South Africans, regardless of race.

Q: How has the Truth and Reconciliation Commission impacted South Africa?

A: The Truth and Reconciliation Commission played a pivotal role in helping South Africans confront the past, promote forgiveness and move forward towards reconciliation.

Q: How do race and gender play a role in the political and economic landscape of South Africa?

A: Race and gender dynamics continue to influence the political and economic inequalities in South Africa, impacting the lives of black and white South Africans differently.

Q: What is the current state of democracy in South Africa?

A: South Africa is a democratic republic with a history of overcoming apartheid, but challenges such as corruption and inequality persist in its political and economic systems.

Q: How has South Africa’s land reform programme impacted the country?

A: South Africa’s land reform programme aims to address the historical injustices of land dispossession, promoting land ownership among black South Africans and fostering economic empowerment.

Q: What role does the Constitutional Court play in shaping South Africa’s political landscape?

A: The Constitutional Court is a key institution in upholding the principles of democracy and protecting the rights of all citizens in South Africa through its judicial decisions.