Divestiture in South Africa

Chief Buthelezi’s argument follows the cliche reasoning that divestiture will lead to the removal of American businesses in South Africa, which, in turn, will lead to a loss of jobs for the struggling black majority. This argument is fallacious because it fails to recognize the structure and history of the South African economy.

The South African economy was built upon cheap African labor and is still largely dependent upon it. The relevance of this fact is compounded when one acknowledges those restrictions set up against capital repatriation following the Soweto uprising of 1976.

If divestiture were to occur, American companies could not simply “crate up” their investments and leave South Africa. Most likely, American investments, many technology-oriented and thus vital to South African economy, would be sold off to either domestic or foreign companies. These businesses, although under different ownership, will still exist and continue to be dependent upon African labor.

Finally, one has to wonder whether Chief Buthelezi’s stance against divestment along with his personal attacks against concerned U.S. politicians reflects his own privileged position within South Africa and the Zulu homeland.

JEFF SLOMANN

Berkeley