Macro-environments of South Africa: time to stop the rot, deterioration, distrust and dysfunctionality

Abstract

Since the introduction of black economic empowerment (BEE) in South Africa by the African National Congress (ANC) in 2003, the impact of the legislation and its accompanying policies on the six major “PESTIS” (political, economic, social, technological, institutional and structural-physical) macro-environments in which businesses in the private sector and government in the public sector operate, has largely gone unnoticed or has been ignored. In an exploratory study using the “5 Star” research methodology, and with the aid of specially developed qualitative research adjudication matrix (QRAM), the impact of the ANC’s BEE policies on these macro-environments was investigated. Unfortunately, it appears that these policies have negatively affected South Africa’s political, economic, social/cultural and institutional macro-environments. Allegations of state capture and nefarious influences on government and ministerial appointments, poor economic performance and possible further credit downgrade to “junk” status by the international ratings agencies, increased prevalence of racism, hate speech and discrimination, and violation of the Constitution of South Africa and international treaties by the ANC government, paint a dismal picture. In addition, the coun¬try is facing unseen high levels of corruption, graft, fraud, looting, bribery, nepotism and self-enrichment in government, state-owned enterprises (SOEs) and businesses. BEE can be regarded as the ANC’s “Achilles heel” in South Africa, and the political party should rather abandon this policy in order to stop the rot, and further deterioration, distrust and decay in the country’s most important macro-environments.