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Saul Wainwright (Political Economy of Industrial Societies major) “South African Foreign Direct Investment in Mozambique"
Sponsor: Professor Maximilian Auffhammer, Agricultural and Resource Economics and International and Area Studies Program


Project Description

Since 1994 there has been an explosion of South African corporate investment into the rest of Africa. It is a unique brand of investment because it does not fit the “traditional” extractive type of investment seen in Africa. Instead, much of this investment is in the form of grocery stores, shopping malls, cell phones and banking. Saul will be exploring the motivations for these investments into what are typically high risk and unstable economies. One of the essential questions is why are the South African companies leading the charge? Saul will be researching the links between private capital and the government’s rhetoric of “African Renaissance” in an effort to understand the relationship between government rhetoric and business investment decisions. He will be in South Africa and Mozambique for most of the summer, meeting and interviewing business members and government officials.


Scholar's Photo 
Saul ponders, from Muizenberg, South Africa, what research would be like without the internet.


Scholar's Journal

Going off to South Africa to study the investment decisions of large corporations always seemed like a daunting task. And this was not made any easier when my laptop was stolen while in Victoria Station, London on my way to South Africa. So, I arrived in Johannesburg without my computer and massive amounts of data that, thankfully, I had backed up before leaving the USA, except that the backup was still in the USA and anyway I didn’t have a computer.

So, after getting over the initial shock of no computer, and realizing that that was how it was going to be for the summer I set to work at getting hold of the few contacts that I had in the country. I managed to secure several interviews with academics in both Johannesburg and Durban.

I spent roughly ten days in Johannesburg meeting with several academics and catching up with old friends. I then flew off to Durban where I was greeted at the airport by one of my thesis advisors. This was good as I had never been to Durban and did not know my way around the city. I spent four days in Durban meeting with several academics from the local university and research institute. These were good interviews and I continued to gain interesting insights into my project, though things were not clear as to where exactly I was heading with the project. Suffice to say that is the story of research.

After my four days in Durban I flew down to Cape Town where my mother and grandmother, whom I had not seen in two and a half years, greeted me at the airport. That was very exciting and involved much catching up and plenty of hugs. I spent a couple days getting myself situated, seeing old friends and visiting family. I then kicked back into research gear.
I had the good fortune of having access to a computer with DSL at my mom’s friend’s house right next door. That rocked. I spent many hours digging up articles and sourcing people to talk with. I managed to meet with several more academics at research groups scattered around the city of Cape Town. I also went to the local business school at the University of Cape Town and utilized their library. This was a very fruitful visit as I found several very interesting articles. I also attended a three-day conference on African Finance, which yielded a great contact; the chief economist of the Industrial Development Corporation – a large development agency owned by the government.

When my time finally came to an end in Cape Town, I said my teary eyed good-byes and headed back up to Johannesburg.

I spent the next several weeks meeting with many different journalists, academics and government officials. It was a tiring process, that ended every day with me completely exhausted and spacing out in front of the TV, but I managed to gather massive amounts of information.

I then headed back to the Bay to see my lovely wife and to rest in my own bed for the first time in three months.
The project has morphed a fair amount over the summer. It is now focusing on the role that government has played in the investment drive. I am exploring how the political and economic projects of development have met in a way that is focused on developing a new black capitalist class in South Africa. The government’s project of Black Economic Empowerment is an important part of facilitating and financing the outward expansion of both state-owned enterprises and the private sector.
There will be much more to follow…..



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