PICTURE: GALLO IMAGES Why does crony capitalism happen? Most people in SA today associate crony capitalism most immediately with the Gupta family, whose business has been built to a greater or lesser extent on favourable contracts with government institutions, in return for which the family has supported, financially and otherwise, both the ANC and the president’s family. It has buttressed this support with its media outlets, designed not so much to inform, but to blow smoke on the truth.There is a reason the family knows who is going to be appointed to what post sooner than anyone else; it matters to them more than anyone else because the whole I’ll-scratch-your-back-if-you-scratch-mine process doesn’t work if the decision makers won’t play ball.Although the Guptas are SA’s most recent example, African history is replete with examples of crony capitalists of all races and descriptions. Perhaps the most famous is Tiny Rowland, who built the once mighty Lonrho empire that at one time...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.