Africa Programme Meeting Summary
South Africa’s Changing Opposition
Julius Malema
President and Commander-in-Chief, Economic Freedom Fighters Chair: Alec Russell
News Editor, Financial Times
27 November 2015
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2 South Africa’s Changing Opposition
Introduction
On 27 November 2015 the Africa Programme at Chatham House hosted Julius Malema, leader of the Economic Freedom Fighters (EFF), to discuss his party’s position on South Africa’s economic, political and social challenges and the role of opposition parties in the country. The 2014 elections saw the EFF become the largest black-majority opposition party in South Africa’s parliament. Although the EFF has been criticized for its outspoken approach, since its founding in 2013, it has catalysed debate on high- profile issues, including the release of the Marikana Commission of Inquiry report, the investigation into presidential spending by the constitutional court and the cost of university education.
The meeting was held on the record. The following summary is intended to serve as an aide-memoire for those who took part, and to provide a general summary of discussions for those who did not.
For more information – including recordings, transcripts, summaries, and further resources on this and other related topics – visit: www.chathamhouse.org/research/africa.
Julius Malema
Mr Malema started by acknowledging the privilege to discuss the situation of the suffering masses in South Africa, and the role of the opposition in their political and economic struggles. He said that the EFF was created two years ago to fill a void in leftist politics, as all supposedly leftist parties have been compromised by their collaboration with the ANC in government. With the only political opposition coming from the right, the apparently leftist ANC has been pushed to the right, and the working-class has been neglected. The EFF emerged to counter this trend, challenge the right and pull the policies of the ANC back to the left.
The speaker noted that the current economic situation in South Africa is defined by severe inequality; 70 per cent of the economy is owned by 10 per cent of the population, whilst 80 per cent of the population is left with a mere 10 per cent of the national wealth. He argued that colonial patterns of property ownership remain in place, distribution of land ownership has not changed since the end of apartheid and strategic sectors of the economy remain dominated by a tiny minority. He argued that despite the end of apartheid and the advance of political freedom, the wider population of South Africa has yet to see any practical benefit.
Mr Malema contended that this occurred because the ANC abandoned the principles of its Freedom Charter, set out on 26 June 1955, and turned instead towards a policy of achieving economic growth at any cost, including abandoning ambitions to eradicate poverty and create jobs. Under President Mbeki, there was growth in the economy but at the same time unemployment, poverty and inequality increased. This has exacerbated the divide between a rich, white minority at one end of the spectrum and black, rural women at the other. He went on to say that the majority of young people are without employment, including most recent graduates, and even those who are in work do not receive salaries equivalent to their qualifications. Even educated graduates are among those loitering in the streets of Soweto and other urban areas, suggesting the argument that people are suffering because they lack skills is misguided. The result is that young people see that graduates gain nothing from their studies and stop taking education seriously.
To counteract poverty and mass unemployment, the EFF proposes tighter state control and intervention. This would emulate the policies opted for by Britain and other European countries after the Second World War, when the state’s intervention was decisive in the reconstruction of their economies. Britain did not 3 South Africa’s Changing Opposition
leave such a project to free-market capitalists, and the government took responsibility of rebuilding industry and nationalizing key sectors. South Africa has been in a similar position after the ravages of apartheid, yet the ANC has not followed the British example, leaving reconstruction to free-market capitalism. This has failed decisively. The problems in South Africa, and, in fact, all of Africa have been generated by the free-market capitalist model and the country continues to have its natural resources exploited by white males to the exclusion of the indigenous population.
The speaker argued that the ANC, like so many other liberation movements, has become irrelevant because it was driven by envy of the colonial masters and a desire to enjoy the same luxury and prestige of power, rather than by a desire to challenge the system and transform the economy. As a result, there was no total overhaul of state power in 1994; the only change was the incorporation of black people into the executive and legislature, whilst the judiciary, the economy and education remained dominated by the white elite.
There is a need for real change: political freedom without economic freedom is not freedom at all. Despite the fact that people can go to the ballot box and place a cross on a voting slip, on the same day they are confronted with the reality of poverty. Real cleavages remain in society, between the privileged and the suffering, and black people consider themselves cursed because of the colour of their skin.
The EFF is therefore proposing a programme to share wealth equally, not to expel white people from South Africa. Mr Malema stated that white supremacy must be eradicated but it should not be replaced with black supremacy, as any structure of racial domination is wrong. Instead, it is essential to transform society to eradicate all such racial divisions and social and economic inequalities. By doing so, social scourges such as crime, lack of education and unemployment will be dealt with. It will be particularly important to focus on education, as it is essential in sustaining economic freedom and empowerment and in avoiding the masses being misled by imperialist ambitions.
In this vein the current [November 2015] student protests are incredibly significant, according to Mr Malema. Moreover, the fact that workers at universities have joined them to protest against the privatization of higher education and their lack of pensions demonstrates how the student movement is attuned to the wider suffering of the masses. The people who constitute the working-classes, from teachers to farm workers no longer have access to basic services, such as medical aid, and are falling into debt. Yet even the dogs of white South Africans have access to medical treatment. There are supermarkets especially designed to meet the needs of dogs owned by the white elite, whilst the black people who work in these shops do not have enough to feed themselves. This cannot continue. Human lives are more important than animals and the dignity of the working-classes must be restored, Malema stated.
To further this end, the speaker proposed that the Johannesburg Stock Exchange, the South African Reserve Bank and the Chamber of Mines South Africa give workers shares in their companies and pay them a minimum wage. He noted that many put forward the counter-argument that the minimum wage will collapse the economy. But, he said, this has not occurred elsewhere, and usually the inauguration of the minimum wage is met with high praise after its introduction. Instead, companies prefer to give shares to the political elite, under the auspices of Black Economic Empowerment (BEE), in return for protection by the government. Mr Malema argued that the transfer of shares to the political elite means that decision-makers act to protect capital rather than workers. If workers were given their own shares, there would never be need for industrial action, because it will affect their own dividends. These changes must be enacted for every worker, regardless of colour, because South Africa belongs to everyone.
4 South Africa’s Changing Opposition
Summary of question and answer session
Comment
Despite the controversy that surrounds you, I hope to set up an equivalent of Economic Freedom Fighters in Nigeria and seek advice on that matter.
Julius Malema
Revolutionary processes face staunch and aggressive opposition. The speaker said that despite being named a hypocrite, or controversial figure, it has always been important for him to remember that his name remains Julius Malema.
Questions
Do you want massive state intervention in the economy or workers to be given shares in their companies?
Can you comment on the fact that state intervention has universally been understood to be a disaster?
Julius Malema
State intervention will occur in strategic sectors of the economy, such as mining, banking and monopoly industries, rather than through a wholesale nationalization. In other sectors of the economy workers should be given shares in companies in order to participate fully. Everywhere, the state and the workers will operate as strategic partners in the economy.
Mr Malema mentioned that state ownership is not inherently disastrous, as several historical examples demonstrate. The Singaporean government owns more than 90 per cent of the land and 22 per cent of the country’s GDP comes from state-owned enterprises. The innovations of the US military in navigation and communication technology, which have influenced the production of most consumer electronic items, are also other examples of state-led successes. He noted that private enterprises are also prone to failure and therefore the private sector should not be viewed as inherently progressive. In fact, he said, there are as many examples of free-market capitalism failing as there are of flawed state intervention.
Question
What is your position on xenophobic violence in South Africa? What is your stance on the escalation of gender-based violence?
Julius Malema
Mr Malema said that he and the EFF are completely against xenophobia. The party’s manifesto states that once the South African economy is transformed and other states are stabilized, the borders – set down by imperialists – should eventually be removed because Africa is a whole. He argued that his depth of conviction is reflected in the permission given to him by those encamped in KwaZulu-Natal to enter the camp and distribute blankets and food, something they did not allow any other politician to do. He contested that the government actually tried to inhibit the entry of the EFF into the camps and disrupt his efforts to speak there. He said that despite this, it was possible to address the crowds who were keen to give their full attention because of the respect they held for him. 5 South Africa’s Changing Opposition
The speaker said that the EFF has been at the forefront of the struggle against gender-based violence and empowerment of women. It has always been EFF policy that there is equal representation of genders in its leadership, as was clear in the electoral list presented to parliament. This is part of a deliberate attempt to empower women and position them so they are seen as equal partners, which will counteract the culture where men believe themselves to dominate women and therefore do as they wish with them.
Question
What is the role of the middle class in fighting inequality and what is your position on the US policy of affirmative action to encourage an African-American middle class?
Julius Malema
A minimum wage, shares for workers and state intervention will narrow the gap between rich and poor. The aim is not to create a middle class, but a classless society. If, in the process of closing the gap, a middle class emerges that is incidental, but it is not part of the final goal.
Questions
Would EFF members ever support an alliance with the Democratic Alliance (DA) to counteract the ANC majority in urban areas?
Are you confident that South Africa’s democratic institutions are strong enough to ensure a peaceful transition of power?
Julius Malema
Mr Malema said that the EFF is a leftist movement, but its most immediate goal is to remove the ANC from power. To achieve this may require some tactical moves, whilst remaining rooted in fundamental ideological principles. The fundamental obstacle all South African political parties face is an ANC government that has institutionalized corruption. All parties, not just the DA, should unite to tackle the immediate objective of removing the ANC from power and dispelling the notion that only the ANC can lead a democratic South Africa, on account of its liberation struggle. Only afterwards should opposition parties begin to attend to their own differences.
The speaker noted that there is unlikely to be a resurgence of violence in politics. The apartheid government collapsed despite its control of the military and this suggests the ANC can also be peacefully removed from power. A positive aspect to the fact that the judiciary remains untransformed is that the ANC has not managed to corrupt it and therefore anyone trying to subvert democratic processes will face due process.
Question
What would South Africa make to sell to other people?
Julius Malema
South Africa needs to invest in agriculture, especially labour-intensive sectors, in order to facilitate job creation. Mr Malema said that, were the EFF to be in power, state intervention would focus on such areas 6 South Africa’s Changing Opposition
as the fresh produce market in the fertile area around the Limpopo which produces avocadoes and citrus fruits. This would also complement the demand coming from countries, such as the UK, which cannot cultivate such products. In contrast, the poultry industry would not be a point of investment because it is not a labour-intensive process. He suggested that South Africa should also capitalize on the large African automobile market and its proven competence in manufacturing goods to produce its own car. Toyota’s success in Japan is a model of how the state can lead such a transformation. State intervention should also counteract the impact of cheap Chinese goods on the textile industry, which has the potential to be the largest in Africa. There should be efforts to manufacture mobile phones, for which there is a huge demand across the continent. Fundamentally, the South African economy is orientated around consumption, rather than production, and the state must be at the centre of a transformation towards an economy constituted by innovative industrialists. Central to this goal will be efforts to provide support to people with innovative ideas. Financial support to entrepreneurs may give rise to occasional losses, but in the long-term it will be immensely beneficial.
Question
Are you comfortable with the term left populist to describe you?
Julius Malema
Mr Malema said that his own name is perhaps the label that suits him best. He stated that as a public figure, it is inevitable that one receives a range of designations, but it remains crucial to maintain one’s own sense of purpose. Nelson Mandela was once referred to as a terrorist, and yet he has long been heaped with many accolades. Public opinion is constantly changing; the speaker said that if the EFF achieves economic freedom, it will be the object of high levels of praise.
Question
How do you hope to encourage a transformational culture that will allow for the dissemination of skills?
Julius Malema
Skills are extremely important. A plan has been outlined in the EFF manifesto to support 10,000 students a year to acquire scarce skills in the best universities across the world. The long-term goal is to transform South African universities so that they have capacity for such training in the future. In the interim the state should fund students to study in the world’s elite universities so they may return to South Africa with crucial skills. The private sector should also be encouraged to establish a similar initiative. Under the first term of an EFF government, the first 10,000–15,000 graduates will already have begun returning and making an impact in South Africa.
Question
Can you clarify your ideological position, given your espousal of Marxism-Leninism despite your opposition to the South African Communist Party (SACP) that propounds the same doctrine?
Julius Malema
Mr Malema said that the SACP has committed ideological suicide by supporting the status quo. Despite radical sentiment, communist parties are often surprisingly conservative and dismiss the struggles of 7 South Africa’s Changing Opposition
progressives, such as Hugo Chavez and Fidel Castro. The SACP has long been more interested in gaining position and status and academic theorizing, rather than staking out a clear and practical political direction. For example, the minister for education, Blade Nzimande, has consistently raised tuition fees every year he has been in office, despite his position as leader of the SACP.
Question
Regarding the ANC succession, is Cyril Ramaphosa the choice representing more communism and less corruption and is Nkosazana Dlamini-Zuma the choice that represents less communism and more corruption?
Julius Malema
The speaker argued that Zuma’s motivation for retaining power is to avoid corruption charges. He alleged that Ramaphosa and Dlamini-Zuma are essentially the same in that they are not committed to the fight against corruption as neither would arrest Jacob Zuma should they come to office. To extinguish corruption, the ANC must be pushed out of power. State enterprises in South Africa are not inevitably prone to corruption, but corrupted by self-interested and incompetent individuals within the ANC.
Question
Is it advisable for institutional investors, such as pension funds, to invest in the future of South Africa?
Julius Malema
Mr Malema answered that everyone should feel welcome to invest in South Africa. However, investment should consider the interests of South Africans, not just European pensioners, to avoid creating an exploitative relationship. He said that an EFF government would scope out whether an investment could be mutually beneficial and would create a secure environment, conducive to investment, in return for investment that correlated with the interests of the people. In particular, any investor must also bear in mind the rights of their workers. Investment is particularly important to South Africa, as taxation cannot raise sufficient revenue in the face of wide-spread tax avoidance by large corporations, particularly in the mining sector.
Question
How can your movement increase the legal reach of charters such as the mining code?
Julius Malema
Mr Malema said that the charters are useless and toothless. Despite the fact that the majority of mining corporations have not complied with the stipulations of the current mining charter and are consistently attempting to bypass it, no action has been taken to discipline them. Mr Malema alleged that the Marikana Commission demonstrated that at the same time the workers at Lonmin were demanding housing, and that the company had sufficient funds to comply but chose instead to divert them to tax havens. The area under the Lonmin’s control was serviced by tarred roads, electricity and water in stark contrast to the community around it, which lacked even basic utilities. The speaker argued that this situation is not solely the fault of the state: it is also free-market capitalists acting without restrictions. He went on to say, it has been a misguided policy to presume that by leaving mining companies alone they 8 South Africa’s Changing Opposition
will pay tax and respect the needs of the population, and the response to this must be a plan for nationalization. Effectively tackling tax avoidance has the potential to transform the lives of millions of people.
Question
Can you comment on the level of politicization of the police?
Julius Malema
The speaker pointed out that it is crucial to have a properly trained police force that is effective in crowd control and is able to carry out such operations with full respect of human rights. He said that currently the police are extremely militarized in South Africa and violate human rights on a regular basis, not just at Marikana. The new law that allows for security personnel inside parliament is also representative of this trend. Despite the fact that the constitution states that parliament should be a place for unlimited free speech, free from the threat of arrest or intimidation, these security forces have been ever-present and on occasion have beaten members. One female member of parliament of the EFF was removed from parliament by security and beaten with her shoe, breaking her jaw. This has motivated the EFF to challenge this law in court.
Question
What is your stance on South Africa’s relationship with China?
Julius Malema
The EFF is interested in a strong collaboration with China, as part of a search for alternative markets, but it will not accept a recolonization of Africa by China. If these are indeed their ambitions, there will be difficulties in the future. One particular issue of concern is the fact that Chinese companies often bring their own workers with them, unlike other colonisers from Britain. Thus, they not only threaten business, but also take jobs from South Africans. They do not even exploit the South African population and give them some level of participation in the economy through labour, which is perhaps the worst relationship of all; at least exploitation under free-market capitalism can provide some small financial compensation. Looking forward to the meeting of African heads of state with ministers in Beijing it is hoped that they do not sell Africa to the highest bidder and take into account the interests of the African people.