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COPYRIGHT AND CITATION CONSIDERATIONS FOR THIS THESIS/ DISSERTATION o Attribution — You must give appropriate credit, provide a link to the license, and indicate if changes were made. You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use. o NonCommercial — You may not use the material for commercial purposes. o ShareAlike — If you remix, transform, or build upon the material, you must distribute your contributions under the same license as the original. How to cite this thesis Surname, Initial(s). (2012) Title of the thesis or dissertation. PhD. (Chemistry)/ M.Sc. (Physics)/ M.A. (Philosophy)/M.Com. (Finance) etc. [Unpublished]: University of Johannesburg. Retrieved from: https://ujcontent.uj.ac.za/vital/access/manager/Index?site_name=Research%20Output (Accessed: Date). Trade Follows the Flag: The case of MTN in South Africa’s foreign economic policy By Odilile Patricia Lindiwe Ayodele Thesis submitted in fulfillment of the requirements of the degree: Doctor Litterarum et Philosophiae (D.Litt. et Phil) in Politics Department of Politics Faculty of Humanities University of Johannesburg Supervisor: Professor C Landsberg SARChI Chair: African Diplomacy and Foreign Policy Co-Supervisor: Professor M Qobo Institute for Pan-African Thought and Conversation ABSTRACT South Africa’s relationship with the African continent, in the post-apartheid era, has been the subject of a growing body of research focusing on the nature of these relationships. Its corporate presence is felt almost everywhere from Khartoum to Maseru, and in various economic sectors. It has been established that South African companies are well placed to invest on the rest of the continent, as they have access to capital, infrastructure and technology. Their efforts are further spurred on by the ideology of ‘African Renaissance’, the principles espoused in NEPAD and the moral capital that South Africa gained at the end of apartheid. This thesis considers the role that South Africa’s African corporate expansion, in the area of mobile telephony, plays in shoring up its projections of leadership status on the continent. Hegemonic stability is used as the theoretical framework underpinning this research. The mobile telephony sector is mushrooming across the continent, thanks in no small part to the weakening of fixed line telephony services within the last two decades. Consequently, South African mobile telephony multinational companies are well placed to fill the gap, with the added advantage of being identifiably ‘African’. Analysis of the relationship between mobile telephony multinationals and the South African government underscores its complexities. As much as mobile telephony corporations have been given implicit support by the State to spread their wings on the continent, there is no concrete framework to legislate their behaviour beyond South Africa’s borders. Therein lies the dilemma for South Africa; on the one hand the State needs the private sector to give expression to its vision for the continent, but at the same time the State has no real control over the actions of these companies. This interpretive research is primarily qualitative relying on a mixture of primary and secondary data as well as some interviews. Furthermore, the thesis considers South Africa’s current regulatory frameworks for its multinationals. 3 ACKNOWLEDGEMENTS This thesis is a culmination of years of research with many stops and starts in between. Upon completion of this document, I am still as committed and as passionate about the subject matter as I was at the start. I believe South Africa, and the continent as a whole is at an inflection point and it is important that African scholars take the lead in charting a new course in academic discourse focused on Africa. A big thank you goes to the National Research Foundation for their generous funding of this research. I would also like to give heartfelt thanks to my supervisor, Professor Landsberg, for his endorsement, ‘bullying’ tactics and ensuring that everything that I needed from office space to funding was at my disposal. To Professor Qobo: thank you for agreeing to join the project and sharpen my focus. I must mention here my gratitude to Dr Lesley Masters for her very helpful workshops and open door. The assistance from Mrs Zelda Geldenhuys from the UJ library will always be remembered and greatly appreciated. Not forgetting all the SARChI team members, past and present. I would like to thank my husband, Ayo who not only was my north star but my sounding board. Ẹ se, to my daughters who had to put up with my divided attention for so long. Siyabonga, to all my family and friends who supported me on this journey. Most importantly, I would like to thank God for getting me this far. 4 TABLE OF CONTENTS Declaration on plagiarism ....................................................................... 2 Abstract .................................................................................................. 3 Acknowledgements ................................................................................ 4 Table of Contents .................................................................................... 5 List of Figures ........................................................................................ 9 Acronyms ............................................................................................. 10 Chapter One: INTRODUCTION ............................................................ 14 Research Problem ................................................................................. 15 1.1 R e s e a r c h Question and Hypothesis ................................................. 16 1.2 Rationale .............................................................................................. 17 1.3 Survey of Literature .............................................................................. 17 1.4 Methodology ......................................................................................... 23 1.5 Research Design ................................................................................... 26 1.6 Analysis of Data .................................................................................... 27 1.7 Outline of Chapters ............................................................................... 28 1.8 Ethical Considerations .......................................................................... 29 Chapter Two: REGIONAL HEGEMONIC STABILITY ......................... 30 2.1 What is Hegemony? .............................................................................. 33 2.1.1 Power as a component of hegemony .................................................................... 34 2.1.2 Capacity ................................................................................................................ 39 2.2 The Embedding of Multinational Corporations: A Hegemonic Girdle ? . 42 2.2.1 Multinational Corporations as actors .................................................................. 43 2.2.2 The Multinational Corporation’s Role as a chargé d'affaire ................................ 45 2.3 Can you have hegemony without a hegemon? ....................................... 48 2.4 Regional Hegemony and Power ............................................................ 49 2.4.1 What is a region? ..................................................................................................49 2.4.2 Types of Regional Power ...................................................................................... 53 2.5 Dimensions of Regional Hegemony ...................................................... 54 2.5.1 Can South Africa be called a Regional Hegemon? ............................................... 57 2.5.1.1 Does South Africa have the characteristics of a hegemon? ......................................... 58 2.5.1.2 Dimensions of regional hegemony ............................................................................... 64 5 2.6 Conclusion ............................................................................................ 67 Chapter Three: SOUTH AFRICAN CORPORATE EXPANSION IN SUB- SAHARAN AFRICA- HISTORICAL CONTEXT ...........................................69 The Birth of South Africa’s Corporate Sector ........................................ 70 3.1.1 Charter Companies: The Original Multinationals ............................................... 70 3.2 South Africa’s Foreign Policy towards Africa ........................................ 74 3.2.1 South African Foreign Policy towards Africa before the advent of democracy ... 77 3.2.2 South Africa: a Western state in Africa? .............................................................. 78 3.2.3 South Africa’s homeland policy ........................................................................... 80 3.2.4 South Africa and the rest of Africa ...................................................................... 82 3.2.5 South Africa’s attempts to carve out a new role .................................................. 84 3.3 Telephony in South Africa ..................................................................... 86 3.3.1 the history of South African telephony ................................................................ 87 3.3.2 Mobile Telephony ................................................................................................ 89 3.4 Conclusion ...........................................................................................