

I am now living in an Africa that is noticeably more white. It doesn't seem like much, but in South Africa nearly 9% of the population of 49 million is white - which is just over 4 million people - a hell of a lot compared to Kenya! I am rarely the only white person standing in line, on the highway, walking down the street. Having said that, most people I walk by on the streets are either black or 'coloured' as is commonly called here for people of mixed heritage like Obama. That would be very politically incorrect in the USA - to call Obama 'coloured' - but it's what is said here and the coloureds are proud of their namesake. Usually the whites are in cars but since I walk most places I am the exception to the rule. I love this opportunity to chat with the Africans as I did in Kenya - always a hello, a little joke, the nod of the head. Also, they are mostly the workers here - guards, cleaners, construction, waiters - so contact with them is inevitable.
It might not seem like the greatest job in the world cleaning the floors of a shopping mall but it's a start - and it could lead to the next rung on the ladder - supervising the cleaners with a pay raise. South Africa is much more formal in it's political ideology than Kenya. You hear terms like 'worker', 'comrade' or 'manifesto' like an invisible blanket of communism is hanging above all our heads warming the society up to the idea of labour emancipation. That's a good thing - wages need to increase exponentially to facilitate domestic growth - but they can't increase too quickly and without an accompanying increase in GDP or tax revenue. 40% of South African workers are unionized, mostly because the leading industry is resource extraction in the form of mining. One of the deal points in the end of Apartheid was that the mines would not be nationalized - and that the basic structure of the economy would not be altered. So the big question is, after 15 years of independence, has the country succeeding in transforming itself to a new empowered society for blacks? Have the political and social systems like Black Economic Empowerment (BEE) taken the society to that next level? Nightly on the news, this question is posed against the efforts of President Jacob Zuma and his leadership.
One of my favourite thinkers who transformed the business department at the University of Witswatersrand in Johannesburg, believes that BEE has achieved the first part of what it was designed to do but now something else is needed. But what lies beyond BEE? If it has succeeded in somewhat leveling out the playing field, now what? Should BEE stop? Should it continue for another 5, 10 or 50 years? I think maybe it should start to be tapered out actually because everyone seems to think that over the last few years things are getting worse. Maybe the BEE mountain has been climbed and the country is now looking at the next much larger mountain behind it? The other scary issue for me coming from North America, is the call to dismantle 2 provinces here and putting them under control of the federal system. This to me is a massive noisy red flag all South Africans should be concerned about. That would be like getting rid of California or Alberta in Canada. The worry is that most South Africans don't entirely understand the intricacies of political systems and that they might just support Zuma in this effort because he is the elected leader. Shouldn't there be a referendum or something? What would Tutu say? Or Mandela?
I ask a woman who works at one of the businesses here in the mall how much income she earns. She says between 300-400 Rand per month for 4 days work. That's about $45-55 US dollars or let's say $200 USD per month. It seems extremely low but you'd have to measure this against the overall profit of the business right? And then you'd have to measure somehow, her unique contributions to the bottom line. Maybe she is the top worker or maybe she is the biggest slacker - two very different scenarios. And maybe this wage is not so low considering her skill set, education and other options to earn wages. I believe the union members earn about $500 USD per month. Mid-level executives I was told would be luckly to earn $3,000 USD per month.
That's why I always encourage young Africans to become entrepreneurs - to sidestep the very limits of wage constraints in the first place. Take the minimum wage, pay the rent, fill the fridge and then in your spare time grow the business that will give you true prosperity. Understand how money and capital truly works, and make a plan. Economic and social transformation will only truly occur in Africa when enough Africans create this reality for themselves in the first place. An employer will mostly never care enough to do that for their workers - he has enough problems of his own paying taxes, sweeping the floor and counting stock. And a government can never guarantee this for every single person in any nation - that would require such a massive bureaucracy to oversee all this it could never be sustained, not to mention a waste of taxes. I remember when Canada operated more like this in the 1970's before the wave of para-statal privatization rolled onto our shores. What was a money-losing beurocratic monolith of a failing postal system, has now become a technology-driven tool that facilitates every aspect of the country's growth. Canada even went to Kenya to teach them our system. If you get a computer receipt from postage (very unlikely) you can see it's exactly like the receipts from Canada Post. I wonder what happened?
So how is South Africa going to solve this issue? The unions are striking for up to a 7% pay increase, the government is trying to calm the foreign investors, the currency is fluctuating and the newspapers are selling. Zuma seems to follow the legal book quite accurately saying that if strikers deny the rights of citizens then they will face legal action, but it is these workers who gave him power in the first place and most of them don't even have electricity at home. They have stopped the garbage, the parking fees and now public transport from some of the largest informal settlements in the country. My work permit application was delayed this week because of a strike in public transit which made me feel a little nervous since my attorney had obviously planned that someone was travelling with my passport to Home Affairs on a bus.
The institution of law is one of South Africa's most precious resources right now to guide it and all of it's people to be equal. If that changes who knows what could happen. And who is going to replace Zuma when he's done? Who is going to be able to balance these fractured and highly vulnerable scales holding up the society? A young Kenyan brought me coffee the other morning in the mall. I asked him if living here was better than Kenya. He said it was better last year but now things were getting worse. I have flashbacks about how my business suffered when the Kenyan politicians basically lowered the growth rate by 5 points after a disastrous 2007 election. Am I about to live through this again? Sitting in the largest shopping mall on the continent, it seems unlikely. I mean, there is a Jimmy Choo store here. I wonder if Tamara Mellon knows about the strikes?
Prosperity for all has got to be possible. South Africa has achieved so much in such a short period time compared to most other African nations, it's got to be able to keep evolving, transforming, prospering. The youth league is pushing to nationalize the mines. I wonder what Mandela and Tutu and Machel think about this? It's always the elders who have the best ideas because they have the most to draw upon in hindsight. They know how long social change takes and how delicate the institutions that allow democracy to flourish truly are.
Photo; Young woman in Stellenbosch, Canal Walk Shopping Mall, Century City