Creation of a Grand Estate after Apartheid: A Parallel Authority for Some and Exercise of Shadow Power in the Democratic South Africa

In the 1970s, Capital owners, led by the Randlords under Oppenheimer, initiated a political strategy to protect their economic interests amidst growing discontent from the black majority. Despite clashing with apartheid’s segregation, the Randlords’ economic power steered the path to the ‘political miracle’ of 1994. They foresaw the need for a strategic shift to maintain economic control while appeasing international pressure, engaging in behind-the-scenes negotiations, lobbying and forming alliances to influence favourable political outcomes

The Randlords’ interventions mastered a ‘soft’ coup d’état that dethroned the apartheid government and also defocused Capital’s atrocities during apartheid. Notwithstanding the damning finding by the TRC on companies and their role in aiding apartheid, white business moguls convinced the ANC that reparations were not necessary because they were committed to the cause. Their efforts led to economic reforms that facilitated a mass exodus of companies like Anglo-American and SAB and capital, leaving the post-apartheid government poor and frustrated.

The ANC felt let down by Capital after a ‘concession’ had been made at the TRC not to investigate these corporations for their involvement in gross human rights violations of a systematic nature. In 2002, for example, Thabo Mbeki lamented that these companies “benefited from the criminally oppressive and exploitative labour, economic and political system instituted and maintained by the colonial and apartheid system”. It was rather very late to reverse the offer not to prosecute them, the new dispensation had delivered the results they envisaged over time.

Since this was a very long-term project that would not be retired any time soon because the political side always remained a threat, Capital did not execute a ‘soft’ coup d’état on apartheid without offering anything in return. White power was intended to permeate the democratic dispensation through whatever means possible. In this article, I argue that the seemingly necessary coalition of political parties, within which the ANC and DA outwitted everyone, is not a coincidence of nature or politics, particularly considering the outcome of the May 2024 elections.

On the contrary, this scenario has been in the making since 1990. The groundwork for this ‘coalition’ was laid long before the recent elections, driven by a series of strategic moves by the white minority to maintain and consolidate their power. In addition, whites have not been sleeping on the job as we have been in the last three decades, they have built a Grand Estate which, in the words of Sizwe Mpofu-Walsh, is a new apartheid territory that “is a privatised, decentralised [and] self-replicating vestige of the apartheid state”.

Unfortunately, the black majority now appears prepared to cede the little political power to make up for its deep slumber by ceding the little political power it gained in 1994. On the other hand, whites meticulously charted the scenario of a “political crisis” in the hands of the ANC, and everyone fell for it. The Grand Estate is living proof that the democratisation project was seriously undermined. Pitifully, the ANC has never been serious about shaping political discourses in this country, but whites are consistent.

• The making of a democracy born in chains

In aiding the continuation of white power in South Africa, global influencers and their narratives made us believe the political settlement, Nelson Mandela, elections and democracy (constitutionalism) were the best things to ever happen to blacks. This narrative implied that over six hundred years of suffering would be alleviated by trickle-down economics, suggesting there was no need to make any demands on land, natural resources or the economy.

The political settlement following apartheid was presented as a monumental achievement for black South Africans, with Mandela’s leadership symbolising a new era of equality and opportunity. Elections and the establishment of democratic principles were touted as the ultimate victories, ensuring that black South Africans would finally have a voice in the governance of their country. The constitutional framework was celebrated as the safeguard of these new democratic ideals.

However, these optimistic narratives masked deeper issues. There was a view that the new government should embrace and rely on trickle-down, neoliberal economics, which purports that economic benefits would gradually reach the impoverished majority without the need for radical restructuring. This belief discouraged pressing demands for land redistribution, control over natural resources or a comprehensive overhaul of the economic system that had long marginalised black South Africans.

As the leading political party post-apartheid, the ANC adopted and promoted this narrative. Through the GEAR policy and other neo-liberal designs, it concentrated its efforts on attracting foreign investments and “stabilising” the economy. In this market-led environment, the ‘willing buyer, willing seller’ policy to land reform emphasised voluntary transactions rather than mandatory redistributions, slowing down significant changes in land ownership. As in all post-colonial states, external powers drove the ANC to adopt neoliberal policies despite their negative impacts on the black majority.

Further economic liberalisation policies were introduced to integrate South Africa into the global economy, but these often favoured existing economic powers and did not sufficiently articulate how historical injustices were going to be addressed.

• Historical revisionism to wipe out apartheid and its atrocities

Another alarming trend is the rapid burial of apartheid atrocities and the pressing need for reparations, replaced instead by new narratives aimed at absolving wrongdoers of their sins. Currently, a new book is being authored to revise South African history, conspicuously lacking input from the black majority. This situation is a clear indication that the black majority is defeated with their consent in all respects: Only the victors have solid ink to write about their conquest-like expedition since the ANC took over.

Therefore, this exclusive authorship of our painful past allows for a portrayal of events akin to a conquest, where the actions and motivations of the powerful are celebrated or justified, while the voices and experiences of the marginalised are side-lined or erased. The rewriting of history in this manner not only perpetuates historical injustices but also perpetuates a cycle of disempowerment and marginalisation for the black majority.

This is unsurprising because the post-1994 dispensation has given us obscured reality, as Aubrey Matshiqi puts it, “where the numerical majority is a cultural minority and the cultural minority is a numerical majority”. This implies that the current and historical formation of our political culture, both institutionally and otherwise, is shaped by the significant cultural influence exerted by numerical minorities. In broad terms, this affects what we read and listen to on the radio as well as the nature of political discourse itself.

Also, the debate shifted from addressing apartheid continuities to what was framed as the state capture narrative and corruption — a significant manoeuvre aimed at diminishing apartheid’s legacy as a shameful blot on white supremacy (or white man’s clean soul). Sadly, the ANC had no response or counter-narrative but chose factionalism and politique du ventre (gravy train ride). At the same time, influential white figures and entities capitalised on this internal strife to consolidate their economic and political influence.

This consolidation was not merely opportunistic but strategic, aiming to secure and expand their control over key sectors of the economy and state institutions. The outcome of white dominance of public discourses is that when we engage in constitutional debates, for instance, and scrutinise the prevailing values within our democracy, we evaluate such debates and other forms of political discourse in our nation against a painful backdrop of dominance by a cultural minority, which is brazen in expressing itself and wants.

• Consolidation of power through the Grand Estate

This article provides a critical analysis of post-apartheid South Africa, highlighting deep-seated socio-economic inequalities and the persistence of racial dynamics despite formal political changes. The ‘new’ South Africa faces an unsettling reality: The cultural minority exceeded the traditional confines of the traditional Fourth Estate by establishing the Grand Estate, a special-purpose vehicle designed to implement a new apartheid agenda, thereby challenging democratically sanctioned political authority.

In The New Apartheid, Mpofu-Walsh argues that “Apartheid did not die; it was privatised,” suggesting how economic power and influence, once wielded through state-sanctioned segregation and oppression, have shifted into the hands of a wealthy white minority operating through informal networks, apartheid-era infrastructure and economic institutions—the Grand Estate. Lenny Gentle describes this ‘neo-apartheid’ as a socio-economic system where “capitalist accumulation has been filtered through and sustained by social relations inherited from colonialism…”

The Grand Estate encapsulates South Africa’s post-apartheid paradox, highlighting the apparent contradiction within the country. While presenting itself as a democracy, a wealthy white minority operates as a ghost-like entity, wielding significant power outside the formal political system. Regarding economic policy, for instance, the Grand Estate and its institutions dictate which policies must be considered. This gives the DA, Afriforum and ‘markets’ considerable leverage in matters affecting its interests.

Since the post-1994 era, debates have revolved around FDI versus utilising internal capacity and resources to reshape the economic system, aligning with post-apartheid ideals of justice, inclusiveness and increased black economic control. South Africa’s economic capacity resides predominantly within the Grand Estate’s domain: encompassing the financial system, institutions, knowledge and networks. Consequently, the financial sector forever rides the boom wave and the poor black majority is trapped in a bust, leaving it bonded to white power and racist demeanours.

Furthermore, the Grand Estate’s influence extends beyond economics to shape political discourse and policymaking.

Traditionally bolstered by support from new black elites within the ANC, the Grand Estate vehemently opposes initiatives that challenge its power and societal influence. Proposals like nationalising the reserve bank or redistributing land without compensation are met with criminalisation and vilification. Instead, the Grand Estate strategically positioned itself on a ‘victim-saviour’ continuum as a provider of jobs, food, credit and other essential services to the victims of the ANC corruption and mismanagement, who are predominantly the black majority.

• Centring the Grand Estate power and empowering the cultural minority

Now that the dust has settled and the new GNU government is in place, one undeniable fact emerges: no one praises the GNU more than the whites. Interestingly, the ANC not only embraced but also championed this idea without a clear purpose. Meanwhile, the cultural minority exploited their ‘saviour’ stance, portraying themselves as rescuers of South Africa from an imagined demon, “Doomsday”. This mirrors the fear-mongering tactics employed by the Randlords in the 1970s. As Roger Southall argues, the ANC has been “unable to overthrow the political, so it was unable to overturn the economic order.”.

As a result, it is no coincidence that the DA insisted on controlling all economic cluster departments as well as justice and foreign affairs. This amounts to seizing power through the back door, a condition that has been ripe for exploitation. Over the last thirty years, the ANC did not wield its political power effectively to thwart South Africa’s ‘neo-apartheidisation’. Also, black billionaires and middle classes are renowned assimilados and peripheral players in a game whose rules empower the Grand Estate and its mechanics.

In the end, it is this very Grand Estate that now dictates the governance configuration, merging the power of voting herds (blacks) with the expansive influence of the white-led parallel power established after 1994. After many years of playing a long waiting game, the cultural minority is gradually gaining control. A new script is waiting to be performed and new actors will be cast. One. Two. Three… Action!

Siya yi banga le economy!