Funding of political parties by business

Throughout the world, business continues to have a significant influence on politics and those who end up in office. This is no different in developing democracies. However significant differences exist in the extent, form and character of how businesses have a political voice and influence.

It is fact that, in developing democracies businesses tend to fund political parties in order to gain influence and get preferential access to government contracts. This has tended to fuel political party entrenchment and corruption. The lack of regulation and transparency that exists contributes to this.

In Zimbabwe, for example, it was recently reported that the Meikles Group is actively funding ZANU (PF)’s election campaign. The group accepted this fact, and there seems to be no negative consequence.

This stands in direct contrast to 2004, when it was rumored that Trust Bank’s banking license was withdrawn because it had allocated more political funding to the MDC, the opposition, compared to what it had contributed to ZANU (PF). 

The funding of opposition parties by business continues to be viewed and treated as a threat to ruling political parties and with serious business consequences.

In South Africa, ABSA bank, always openly discloses its funding to political parties with the ANC receiving the highest share. There seems to be no recriminations, but I wonder what would happen if ABSA decided to only fund opposition parties.

These are some of the contradictions we face in Africa. These contradictions are faced by businesses that may want to promote democracy but also may be dependent on government contracts which are normally under the control of ruling political parties.

The challenge is for us to reconcile these to the benefit of democracy.

Putting into place rules and laws that regulate the funding of political parties can therefore reconcile these contradictions by making political party contributions an objective and transparent exercise that seeks to promote multi party democracy.

Such regulations must limit the extent of contributions business can make to a political party and be transparent for all to see. In addition, business must be required to disclose the extent of their dealings with the sitting government to limit future corruption.

We need to admit; that business can play a very crucial role is promoting multi party democracy as long as this is done in the interest of democracy and not with a view to gain influence and access to government business. However, in developing democracies, this may be asking for too much.

By Vince Musewe.