The ANC Billionaires

1. Apartheid's End: A Transition Orchestrated by Elites

But it was the elite pacts – the agreements between those groups in society that possess political and economic power – that ensured stability and breakthroughs.

Elite agreements. South Africa's transition from apartheid to democracy was not solely a political event but a carefully negotiated series of agreements among the country's power brokers. While the political compromises have been well-documented, the economic compromises and agreements that took place among the elite had similar, if not more consequential, repercussions for South Africa.

Avoiding civil war. The main actors, principally the National Party (NP) government and the ANC, were able to agree on the main tenets of what was achievable and what wasn’t. This wasn't achieved easily, nor without bloodshed, but the country avoided a civil war and protracted strife because the main actors on all sides of the divide were able to look beyond the horizon.

Economic compromises. Almost 30 years after political freedom was achieved, the country is still searching for agreement on how to change the structure of the economy, how to ensure that more people are included, and what needs to be done to achieve faster, efficient growth. The rise of a few well-connected and very wealthy billionaires and millionaires after 1994, all of them connected to the ANC, is testament to the opportunism of some individuals who very early on identified the rich seam of economic opportunity that freedom brought.

2. Big Capital's Pragmatic Engagement with the ANC

Business wanted to survive, and in order to do so, it had to make the black elite owners of capital, even though they couldn’t afford it.

Survival imperative. Big capital's engagement with the ANC was driven by a desire to protect its interests and ensure its continued operation in a post-apartheid South Africa. By the early 1990s these conglomerates – Anglo, Rembrandt, Sanlam, Old Mutual, Liberty Life, AngloVaal – controlled 86 per cent of the Johannesburg Stock Exchange (JSE) and had been producing rich profits for decades. They had to find a way to survive.

Building relationships. Anglo American, under the leadership of Gavin Relly, took the lead in establishing contact with the ANC in exile, recognizing the need to understand and influence the future government. This involved:

• Meetings with ANC leaders in Lusaka
• Scenario planning exercises to anticipate future instability
• Facilitating dialogue between business and Mass Democratic Movement (MDM) leaders

Market liberalism. Big capital sought to influence the ANC towards market-friendly policies, promoting the value of South African big capital. This was achieved by drawing in the new political elite in the ANC. Business wanted to survive, and in order to do so, it had to make the black elite owners of capital, even though they couldn’t afford it.

3. The Freedom Charter vs. Market Realities: An Ideological Collision

The movement arrived back in South Africa uncertain of its exact economic policy positions, save to proclaim allegiance to its 1955 Freedom Charter, a document which by then had become moribund as a guideline for modern economic theory.

Clash of ideologies. The ANC's historical allegiance to the Freedom Charter, with its socialist leanings and advocacy for nationalization, clashed with the realities of a rapidly globalizing and market-driven world. The ANC did not really believe in the free market, and it most certainly did not believe in apartheid capitalism.

Freedom Charter's tenets:

• Nationalization of banks, mines, and monopoly industry
• State control over industry and trade to assist the wellbeing of the people
• Redistribution of land

Economic pragmatism. The ANC had to reconcile its ideological commitments with the need to attract investment, maintain fiscal stability, and integrate into the global economy. This led to internal debates and a gradual shift towards more market-oriented policies.

Adoption of pro-market, conservative economic policies. South Africa had to become a credible investment destination, and it had to play by the rules. So it meant the adoption of pro-market, conservative economic policies that had as their goal the consolidation of state expenditure, the reduction of debt and, crucially, the redistribution of wealth and social development through economic growth.

4. The Rise of ANC-Linked Billionaires: A Consequence of Transition

It also meant bringing formerly excluded black businessmen into the rosewood-panelled salons of big capitalism. And some of them became fabulously wealthy.

Empowerment as a strategy. Big capital embraced black economic empowerment (BEE) as a means of co-opting the new political elite and ensuring the stability of the economic system. The black elite had to own a chunk of the country’s wealth so that the system could survive; and the transfer of assets to a politically connected elite was enormously profitable for big capital.

Transfer of assets. This involved transferring ownership of assets to politically connected individuals, often through debt-financed deals. When the mines and the banks and the conglomerates went about shopping for empowerment partners, for the first decade at least, it found the same partners every time.

Cyril Ramaphosa's example. Cyril Ramaphosa became extraordinarily wealthy not because he was a shrewd businessman with a knack for turning around flailing companies, or because he was an industrialist who created a new service, market or product. He, like many others, was favoured because of his links to the governing ANC.

5. Black Economic Empowerment: Promise and Peril

Almost thirty years later, amid high levels of poverty and deprivation, and the deterioration of social services, the question is being asked ever more urgently: did the ANC sell out the ideals of the liberation struggle?

Intended goals. BEE aimed to redress the economic inequalities of apartheid by increasing black ownership, management, and participation in the economy. The black elite had to own a chunk of the country’s wealth so that the system could survive; and the transfer of assets to a politically connected elite was enormously profitable for big capital.

Unintended consequences. BEE has been criticized for:

• Benefiting a small, politically connected elite rather than the broader black population
• Creating opportunities for corruption and patronage
• Failing to fundamentally transform the structure of the economy

The question of betrayal. Almost thirty years later, amid high levels of poverty and deprivation, and the deterioration of social services, the question is being asked ever more urgently: did the ANC sell out the ideals of the liberation struggle? Could the political transition have been concluded in such a way as to ensure a just and sustainable economic transition?

6. The Mbeki Era: Embracing Fiscal Conservatism and Global Markets

We wanted to demonstrate that we weren’t two-bit players just out of nappies; we were serious about running the country.

Economic orthodoxy. Under the leadership of Thabo Mbeki and his finance minister Trevor Manuel, South Africa adopted a set of orthodox economic policies aimed at attracting foreign investment and maintaining fiscal stability.

Key policies:

• Fiscal consolidation and debt reduction
• Relaxation of exchange controls
• Trade liberalization
• Privatization of state assets

Global credibility. South Africa had to become a credible investment destination, and it had to play by the rules. So it meant the adoption of pro-market, conservative economic policies that had as their goal the consolidation of state expenditure, the reduction of debt and, crucially, the redistribution of wealth and social development through economic growth.

7. The RDP's Unfulfilled Promise: Ideals vs. Implementation

The problem is that the focus in the 1980s was on political transition and avoiding a race-based civil war, and, let’s be clear, that was a good thing to focus on.

Ambitious goals. The Reconstruction and Development Programme (RDP) was an ambitious policy framework that aimed to address the socioeconomic inequalities of apartheid and improve the lives of all South Africans.

Key objectives:

• Meeting basic needs (housing, water, electricity, healthcare)
• Developing human resources (education, training)
• Building the economy (job creation, investment)
• Democratizing the state and society

Implementation challenges. The RDP faced numerous challenges, including:

• Limited resources and capacity
• Conflicting priorities and policy debates within the ANC
• Resistance from vested interests
• The adoption of GEAR, which prioritized fiscal austerity over social spending

Economic transition. Bobby Godsell is strident in his beliefs that there hasn’t yet been an economic transition. ‘The problem is that the focus in the 1980s was on political transition and avoiding a race-based civil war, and, let’s be clear, that was a good thing to focus on. But we’ve had black inclusion in the economy now for almost thirty years, and if you want to look at the economic transition, what new business can you think of? What new technology? What significant expansion of a business, other than cellular phones?’

8. The Enduring Legacy: Inequality, Distrust, and the Unfinished Economic Revolution

We may have seen some new billionaires join the establishment class of the Oppenheimers and the Ruperts, but this country will have to make tough decisions, and make them soon, to ensure that it isn’t only the few that are lifted out of deprivation.

Persistent inequality. Despite the political transition and BEE initiatives, South Africa remains one of the most unequal societies in the world.

Erosion of trust. Years of destructive politics and state capture have eroded trust in government and institutions, hindering economic progress.

Unfinished revolution. The economic transition remains incomplete, with many South Africans still excluded from the benefits of economic growth.

Need for tough decisions. South Africa will have to make tough decisions, and make them soon, to ensure that it isn’t only the few that are lifted out of deprivation. The brittle pact reached between economic and political elites almost 30 years ago is under extreme pressure.

Last updated: July 13, 2025