ANALYSIS: Is the Nationalization of mines proposed by the African National Congress Youth League (ANCYL) feasible for South Africa?  

In recent months the president of the ANCYL has proposed the nationalization of mines as an economic strategy in resolving South Africa’s economic disparities. This has met different views in different sectors of this country. In order for one to have a sound analysis of the proposed nationalization by the Youth League, it is proper to trace the origins of nationalization in historical events.  During the 1955 adoption of the Freedom Charter, the African National Congress (ANC) which is the mother body to the Youth League (and other liberation movements) emphasized the nationalization as the cornerstone of its economic and social policy. This was also endorsed in 1969 during the Morogoro Conference (of the ANC). By this time the ANC was more aligned with the Soviet Unions which sympathized with the oppressed people globally. This alignment with former Soviet Union was a thorn to the Western world. 

During the early to mid 1980s some moderate leaders within the ANC like former President Thabo Mbeki organized some workshops in an attempt to neutralize the skeptical white nationalist officials who perceived the ANC as socialist organization, but still maintaining ties with the Soviet Union. 

The collapse of the Soviet Union in 1989 caught the ANC off guard. There had to be drastically changes in its economic policy. By this time the ANC had no clearly defined economic policy except the reliance on the Freedom Charter as the guide to its post-apartheid economic and social policy. 

This period opened the doors for national and global economic institutions like the International Monetary Fund (IMF) and World Bank to influence the economic adjustment of the post-apartheid era and advanced neo-liberalistic policies. As early as 1991 people like former president Mandela assured investors that the ANC was prepared to accommodate their interests.

Then these big businesses and these international monetary institutions imposed conditionalities which include liberalization of exchange, cut in public spending, deregulation of currency, privatization of state assets, sound money and balanced budget with the impression that this will attract more foreign direct investment, better industrial competitiveness, improved public investment; to mention a few, thus the replacement of Reconstruction and Development Programme (RDP) with Growth Employment and Redistribution as a macro-economic policy under Mbeki administration. 

With this background in mind, we should return to our primary question of the practicality of nationalization of mines in South Africa as proposed by the ANCYL's Julius Malema since 2009. Malema wants the government to have more control over the mining industry. This argument is supported by organizations like the Pan Africanist Youth Movement (PAYMO).

However, the government stipulates that the nationalization of mines is not a government’s policy but is open for debate. President Zuma reiterated this statement at the World Economic Forum in Switzerland. Speaking at a media conference in Cape Town, Mining Minister Susan Shabangu maintained that in her lifetime there will be no nationalization of mines. This sound interesting as we have witnessed the influential role played by the Youth League in manipulating decision-making within the ANC before and after the (ANC) Polokwane Conference. 

The nationalization of mines is not realistic in South Africa at this period, firstly due to global economic crisis which has reduced foreign direct investment and has hit motor and textile industries including mining. Secondly, having single super power controlling economic developments globally assisted by the big businesses and international financial institutions like IMF and World Bank makes it difficult for any country to deviate from their conditionalities as observed in countries like China who have opened doors to privatization of some segments of their economy.

Thirdly, the ANCYL does not come up with detailed strategy on how to implement its desired nationalization. Finally, I think that the Youth League can try other ways of addressing the economic imbalances that prevail in South Africa which include skills development for the previously disadvantaged societies.

*Sigqibo Matiwane is a lecturer in Department of Politics at the Walter Sisulu University at Mthatha, Eastern Cape.