South African foreign policy in Africa : the case of South Africa retail multinational corporations

Abstract

The significant role of multinational corporations (MNCs) in the international political economy necessitates innovative ways to study their activities and relationships with states. This study, therefore, analyses the foreign policy of the South African government in Africa during President Thabo Mbeki’s administration – 1999 to 2008 juxtaposed with the corporate diplomatic strategies of selected retail MNCs. The MNCs – Shoprite Holdings Limited, Massmart Holdings Limited, Woolworths Holdings Limited and Pick n Pay Holdings Limited – are treated as actors. The study uncovers the nature and extent of coalescences and divergences of strategies between the government and the MNCs. It also finds divergences between government’s policy pronouncements and interests. For example, the government’s plan to craft a code of good business practice is found to be in conflicts with its support for multilateralism. The study lays the basis for a new model to study diplomatic strategies of firms and governments.