Indigenization and Black Economic Empowerment in Sub-Saharan Africa since the Late 1950s

Abstract

Economic indigenization and black economic empowerment (BEE) policies in most sub-Saharan African countries were designed to create more economic opportunities for “indigenous,” “black,” or “African” people, mainly through affirmative action. They were attempts to address historical injustices caused by economic marginalization and deprivation of “indigenous” or “black” people during European colonial domination. In addition, they were attempts to address the negative impact of the incorporation of Africa in the world capitalist system, precisely the impact of foreign capital. While the adoption of indigenization and BEE policies was sine qua non in sub-Saharan Africa, there were a number of constraints. Socialist ideologies adopted by some postcolonial governments in Africa discouraged entrepreneurship and private accumulation of wealth. African governments’ alliance with and accommodation of local white and foreign capital, and their reluctance to create a middle class with potential to challenge their dominance retarded indigenization and BEE policies. At different times, and responding to domestic or foreign developments, the attitude of African governments changed and they opened some political and economic space to indigenous entrepreneurs. Indigenous interest groups advocated for legislation to support indigenization and BEE. While indigenization and BEE policies created economic opportunities for indigenous people, they ignited debates on issues such as racial discrimination, citizenship, and increasing inequalities among the targeted beneficiaries. They have also been pilloried for providing a gateway for fraud, corruption, patronage, and cronyism.