South African Business: Going Global

Following the fall of apartheid, South African companies had much catching up to do. The isolation of the 1980s, however, did confer some benefits, including self-sufficiency and internal development. Another result was the creation of local conglomerates focusing on diverse industries, or “business octopuses.” Allowed to do business beyond South Africa’s borders, however, these unwieldy corporations sold non-core assets and began to develop into international forces. The brewer SAB, for instance, has in the past decade invested in several African and East European companies, as well as in China, the US and Colombia. While some neighbors see South Africa’s economic hegemony as “neo-imperialism” and harmful to underdeveloped countries, there is no doubt that many corporations infuse capital and jobs into economies. With an “ability to straddle the rich and poor worlds,” South African multinationals could lead future development. – YaleGlobal