Black Economic Empowerment in the South African Wine Industry

Abstract

KWV has been at the centre of the South African Wine Industry since 1918. In July 2004, KWV agreed that a broadly based Black Economic Empowerment (BEE) consortium would acquire 25.1 per cent of the shares of the KWV Group. The South African Wine Industry Trust, whose trustees are nominated by the Minister of Agriculture and Land Affairs and by KWV, facilitated the deal. The agreement has features specific to the wine industry; it is also a milestone and a precedent for black economic empowerment in agriculture. This paper situates the politics of black economic empowerment in the context of the legacies inherited by the wine industry. It examines the complex political processes by which the participants mobilized funds and negotiated decisions to reconcile their objectives and realize their goals. By examining carefully the details of the sequences of events, the paper sheds light on the peculiar features of this case and raises questions about the nature, implications and significance of black economic empowerment in South Africa.