In July 2021, political unrest peaked in several South African provinces following protracted economic instability and the imprisonment of former President Jacob Zuma. The protests were among the worst political violence South Africa has experienced since the end of apartheid. The country's economy was particularly vulnerable to civil unrest, deepening the impact of the violence.
Causes of violence
July 7: Former President Jacob Zuma He began serving his 15-month prison sentence. Zuma was sentenced to prison for refusing to attend hearings into government corruption during his presidency. Zuma's political allies have called for action to secure his release, and anger over his imprisonment has led some of his supporters to turn to violence.
The unrest began in Zuma's home province of KwaZulu-Natal (KZN), where many of his fellow Zulus live, and quickly spread to neighbouring Gauteng, where rioters turned their anger on other Zulu small businesses, housing and inter-provincial infrastructure. After the unrest subsided, More than 300 people died The rebels caused more than $1 billion in damage, including the destruction of 20 warehouses and The factory suffered heavy damage.However, local small businesses suffered severe damage.
Analysts point out that Only 24% of South Africans It's a decision on the direction the country is heading in. Zuma's imprisonment was certainly a catalyst, but endemic corruption and unemployment are longer-term drivers of the violence.
The purpose of violence
The rioters' goal was more complex than just getting President Zuma released. President Ramaphosa described the unrest as “An insurgency targeting the country's economy and infrastructurePoor and unemployed South Africans see corruption in their country and are violently demanding their share of the country's prosperity. While the unrest does not appear to be a coordinated attack, South Africa's economy is particularly vulnerable to such disruptions. It is composed of state-owned enterprises (SOEs).
Why is South Africa’s economy particularly vulnerable?
South Africa's state-owned enterprises Formed during the apartheid eraThe SOE system was introduced to support the industries most affected by international sanctions imposed by anti-apartheid countries. This was introduced to encourage economic self-reliance in those industries that were unable to get foreign aid or investment. However, the biggest drawback of the SOE system is that its success depends on the strength of the incumbent government. Zuma's The regime was characterized by corruption.as Zuma misappropriated government revenues. And confidence in state-owned enterprises was eroded: their dire financial position, resulting from poor governance, hampered their ability to borrow and limited their future prospects.
South Africa has 26 state-owned enterprises, which spread government resources and attention across them. As a result, many SOEs operate without sufficient oversight and support, making them ideal targets for sabotage. The proposed guidelines for South Africa's SOEs state that: The OECD notes that state-owned enterprises tend to dictate the business environment. For the good of the country. After all, if public companies don't play by the rules, private companies are unlikely to play by them either. they again, The structure of SOEs makes them vulnerable to corruption, particularly in terms of governance and leadership. South Africa's heavy reliance on SOEs and history of corruption creates fertile ground for business inefficiencies.
“Bill of Rights, Durban, South Africa” by bistandsaktuelt is licensed under CC BY 2.0.
While the rioters' attacks were primarily aimed at the engine of our economy, it is our people who are paying the price. 129,000 jobs at state-owned enterprises and small and medium-sized enterprises at risk With shockingly high unemployment, daily life has been thrown into complete chaos. Food supply chains collapse And people end up homeless.
of Great potential for the shipping industry South Africa could slip into crisis as its reputation grows amid widespread instability and insecurity. If such instability proves effective in producing political change, the country risks introducing violence into the political equation. However, this seems highly unlikely, as June's unrest resulted from an unusual set of events. To move away from an economic system built on global sanctions against apartheid, South Africa needs to present itself as a new, safe and stable country.
According to a poll Public opinion is currently weakening against the once-dominant African National Congress (ANC), the party that has been in power since Nelson Mandela became president and of which both Zuma and Ramaphosa are members. To stay in power, Ramaphosa will need to reckon with the party's legacy.
forecast
It is possible that politically motivated violence will increase in the future – the riots and economic turmoil caused by COVID-19 will only exacerbate unemployment and poverty – but with increased COVID-19 relief payments and the deployment of military forces, future violence is unlikely to reach this level of devastation for the time being. The nation's unemployment rate soarsKeeping unused workers satisfied is a top priority. If state-owned enterprises continue to prioritize helping achieve political goals over profits, the country's economic fragility is likely to worsen.
