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“No economy can grow by excluding any part of its people, and an economy that is not growing cannot integrate all of its citizens in a meaningful way.” - from South Africa’s black economic empowerment strategy document.

At the end of May I started writing about new media for ITWeb and thought my first story should be an overview of South Africa’s new media industry. Given the rapid proliferation of new media consultants, digital agencies and social networking specialists, it seemed a fair enough story.

What I did was to single out, in terms of traditional and new media profile, who was getting the lion’s share of coverage and attention. Who was deemed the ‘new media elite’. A Who’s Who of Web 2.0 working in South Africa. I wanted to ask the experts who they would rate as the best consultants in the industry. An experts’ list of experts if you will. As I started writing and interviewing for the story, something became evident. The most prominent business owners, players or companies in the industry are predominantly white. For the most part, the experts they preferred to pick are white. To make my list more representative I picked up the phone and started calling people on my list asking them about empowerment in the industry. I wanted them to refer me people who ran a black owned and managed agencies. Or empowered companies. These are the responses I got:

“Sorry Mandy, this is a white boy’s game. That’s just the way it is.”

“I don’t like the situation, but that’s how it is.”

“Young white males have the best aptitude for this industry. Others don’t. There are some women on the periphery, but like blacks they don’t have aptitude the hard core tech stuff.”

In an effort to try and make the story more representative I found three industry players of ‘colour’ and asked them to participate. One owned a large, empowered digital agency and was too busy. The other two said they would respond but never got back to me.

At that point I was convinced that race was an issue in the story. It made me realise that for as long as I have been involved with the Internet, consultants and companies who serviced marketers and businesses interested in Web services have been predominantly white. That little had changed in the industry over the past ten years.

I first fell in love with the Internet in 1998 when I ran the Cape Town office of the global high technology communications company Text 100. Apart from working with Microsoft, Motorola, and BT (British Telecom) we helped launch M-Web and 24.com. I was also involved with marketing a little known start up called Mosaic Software that went on to become a global self-service banking and payment processing phenomenon, and was eventually acquired by S1 Corporation (Nasdaq: SONE) in 2004 for $37m. After leaving Text 100 I worked with a number of internet start ups, and consulted to ABSA on their Internet banking initiatives before founding Brand & Reputations consultancy, Idea Engineers. There I handled marketing for Acceleration (a global e-marketing success story); online self-service experts Consology, Nashua Mobile and global networking giant Verizon alongside some retail, leisure and financial brands.

During the past ten years I have worked with digital design agencies, Web consultants, search agencies, new media marketing companies, Web research companies as well as venture capitalists with an interest in technology and new media. In the early days, empowerment in the Web industry was always the exception to the rule, and I heard new media CEOs say in boardrooms that they would not bother with empowerment because they trade in a scarce resource. Returning to write about the industry as a journalist, I am convinced that not much has changed. There are excellent black independents and one or two empowered agencies, but the lion’s share of the work and subsequently the capital, skills and intellectual property is still tightly held by what is essentially a white boys’ club.

This was confirmed when I chatted to Zibusiso Mkhwanazi, the 24-year old former founder of Csonke.com who led the BEE merger that recreated KrazyBoyz as one of the country’s leading empowered digital agencies, and possibly the only sizeable black owned and run agency in the South African new media industry. The move saw Mkhwanzi take top honours at the BBQ Awards with the “BBQ Young Business Achiever Award” presented to him by ANC Treasurer General and businessman Mathews Phosa.

Says Mkhawanzi:

“As far as I am aware, KrazyBoyz is the only large agency that is black owned, managed and fully empowered.

We are in a small industry that hasn’t grown significantly. There are only a few niche players. I would say there are no more than 30 players you can rely on. The rest are up and coming. Because of the small pool, the client hasn’t got a lot of talent to choose from. Empowerment is a competitive advantage but there is simply not enough pressure for other players to become empowered.

To my mind the players need to make an effort to go and find good talent at universities, and start mentorship programmes and other initiatives that will promote empowerment in the new media industry. They need to start nurturing tomorrow’s bright stars by speaking at, and interacting in schools, universities and colleges. They need to empower and grow their own employees.

At the end of the day it is a matter of finding the talent. They are not trying hard enough. Empowerment is a matter of will. They simply don’t have the will.”

With top talent heading off to Silicon Valley or off shore, I was disappointed with the reaction to the article which was largely characterised by ego, efforts to discredit myself or ITWeb, petty in-fighting, and statements that race was not an issue.

Web comments on the ITWeb story:

  • BOYS CLUB MEMBER (Anonymously): “Would someone who is encouraged to work in the IT industry based on his race or gender really add value? The people in my opinion who really add value to the IT industry, are the ones that have a passion for what they do regardless of sex or race. Recognition should be based on achievements, not based on achievements that are based on sex or race.”
  • KHATHUTSHELO NDOUVHADA: “I don’t think that these guys should be forced into making BEE deals.”
  • EVE DMOCHOWSKA: “Certainly, it *is* a white boys’ club, but believe me: there is no one holding a gun to any female or non-white person who would want to be a player in the space.”
  • WENDY: “Gender and race are incidental.”
  • Extracts from some of the blogs commenting on the story or issue:

  • Nic Haralambous: “The immediate feeling that I get is that this is like affirmative action in sports teams - the Springboks to be precise. The situation that rugby players of colour have faced in the past is a lose-lose, if they are chosen they question the reasons for their selection. If they are not chosen then they wonder if it was due to their race. Lose. Lose.”
  • Ramon Thomas: “Mandy de Waal, a freelance journalist, wrote this article on ITWeb, which I found very offensive. The main reasons I found it distasteful is the most obvious one i.e. it is simply an example of lazy journalism. She interviewed 11 people, all white, who their Web 2.0 dream team is. Maybe if she asked one non-white person she could still have made her point without having to call it a white boys club.” Ramon then goes on to offer a list of potential interviewees none of which own, manage or control a South African based new media consulting company of any size. The list offers names of a number of independents, people employed by empowered corporates outside of the new media industry (telecoms & advertising), and people employed by companies who are yet to be empowered or people who have made it big and left the country. The rest of the blog is an analysis of the racial profile of Tech Leader contributors, with a motivation why Ramon Thomas should be included as a contributor on this forum.
  • Mike Stopforth created a poll called: Ramon Thomas Vs. The White Boy’s Club to determine whether Ramon Thomas was self aggrandising, or whether empowerment should be effected in the industry. At the time of writing only 7% of Stopforth’s readers believed the industry should do something about empowerment. 17% didn’t give a damn.
  • My opinion is that these blogs add little, if any, value to the real issues of empowerment in the industry. Blogs worthwhile reading and that add to the debate are:

  • Ismail Dhorat’s post on Buzz 2.0, “Stop Drawing racial lines in the Sand, Take Action”
  • Nur Ahmad Furlong’s Tech Leader piece “Oh what racially tangled webs we weave”
  • Paul Jacobson’s “Colour me fascist”
  • Darren Raven’s “Where Are All The Black Web Professionals?”
  • The bottom line?

    Business is a matter of supply and demand. New media skills are in short supply and great demand. Right now the white boys hold the lion’s share of the supply. The way I see it, they have little interest or incentive to let go and empower others to share in the wealth, skills or technology in the new media industry.

    But please tell me I’m wrong. Show me:

  • What BEE deals are currently being brokered?
  • Who is offering equity to staff, communities or other previously disadvantaged groups;
  • Who is recruiting and training new talent from previously disadvantaged groups?
  • Who is involved in human resource or skills programmes to address the issue?
  • What mentoring programmes or processes are in place?
  • How new media skills and technologies are being championed in communities to address the diversity issue?
  • How the industry is constructively or individually taking action to deal with this issue?



  • Related Posts

    7 Responses to “The white boy’s club”

    Mandy

    Race is in my opinion not an issue. The whole essence of social media is that it is “user generated”

    Its also new.

    The people involved would be the people who this brave new world excites - a personality characteristic, not related to race or gender.

    Race is actually a pretty useless variable which describes very little. It is however a variable that excites much emotion.

    Once the pioneers have opened up the market the followers will follow.

    As a white male over 50 who is involved in this space - should I ask how well my demographic profile is represented?

    (Report abuse)

    Walter Pike on June 7th, 2008 at 10:17 am

    Race is an issue Walter. It’s a big issue. There are many issues or angles to the race debate but let me just use one to illustrate my point.

    In South Africa (and Africa) you need to market brands that speak to black urban people, or even disparate communities throughout Africa. As a young, white male how can you understand and communicate to that demographic if you have absolutely no understanding of it?

    Another example which is perhaps more germane to your demographic. There’s a huge opportunity for marketing and promoting luxury brands online. However how can a 21 or 24 or 28 year old white male effectively understand how to market to a “Black Diamond” or a mature, wealthy man in his sixties? That is the market for luxury or haute goods in this country.

    I don’t have a problem with young white men, per se. This is not an article attacking them at all. Rather an article appealing for diversity in the industry.

    I believe diversity would add enormous value to the web, new media and related industries.

    (Report abuse)

    Mandy de Waal on June 7th, 2008 at 11:43 am

    it has far more to do with social class than with race, even though the two are somewhat linked here.

    [insert mundundu’s standard rant about the high cost of telecoms in this country.]

    bill gates is an exception, as he comes from a very wealthy family. [his father is the richest person in the state of washington that is not an employee of either microsoft or nintendo.]

    but most up and coming computer people, worldwide, come from solidly middle class backgrounds. as a solid middle class does not exist in south africa, and what little of it there is remains very white, it just goes to reason that most people in the it arena would be white.

    put another way — all of those people who are the first in their family to go into tertiary education aren’t going to go into companies that are start-ups. for start-ups you need to have your own money or an angel investor — and many of the relatives of someone who is a “first” would put enormous pressure on them to be a wage slave at a big company, which often will not give them the free time to code and come up with interesting net-related ideas.

    [and if they’ve gone to school for this and get a job in the field, many firms put nice things in contracts saying that anything you invent while an employee is their intellectual property. so if you invent something on their equipment; it’s theirs, not yours. nifty, eh?]

    to sum — worldwide, very few people who are big in new media or anything else IT-related grew up “poor” in their local context. nearly everyone, no matter what race, grew up at least “middle class” in their local context. i cannot stress this enough.

    [and, to be honest, see also: why “proper transformation” in sa rugby will happen long before “proper transformation” will happen in either cricket or swimming. it is all about social class. but that’s for sportsleader, and not techleader]

    (Report abuse)

    mundundu on June 7th, 2008 at 4:38 pm

    Thanks both Mandy and Mundundu. Good points and they run on logically. I understand and appreciate the argument.

    I love fly fishing, even teach people how. One of my lessons is to suggest to my student that they fish where the fish are.

    So if to want to reach a target group talk in the language they understand and to them where they are, if they aren’t on the internet talk to them somewhere else.

    The future of all the social media industry is Mobile isnt it see Seth Godin’s blog today. The clowd at http://tinyurl.com/4zw6sc so maybe we will be looking for this diversity sooner than we all think.

    (Report abuse)

    Walter Pike on June 7th, 2008 at 11:01 pm

    My Information Systems class was predominantly black. Most of the “White Boys” from my class are now pursuing the own ventures. The remaining majority, i.e, the “Black Boys” and the “Girls” were either snapped up by the Accenture’s and Deloitte’s of this world.

    Maybe I am nuts for choosing this route, with the costs of bandwidth, its hard for anybody who does not have any back-up. So my team and I started building sites, designing graphics at Wits so that we could finance our Web Ventures.

    It all comes down to the passion and the drive. Most people are content with their corporate gigs and that is ok. But some of us want more, hence we bear the brunt of terrible bandwidth and march on.

    (Report abuse)

    khathutshelo Ndouvhada on June 9th, 2008 at 10:18 am

    While I agree with your sentiment in the comments about appealing to an ethnic South African demographic requiring more of them in the design/development process, I feel that this whole topic is teetering on the edge of going a little off topic.

    I don’t mean to come across arrogant and I may be wrong, but this whole topic is becoming a little “old” and irrelevant. Shouldn’t we be concentrating on technology rather than this race issue. Perhaps more suited to thoughtleader? The magic of hyperlinking will keep it in the family.

    Just IMHO.

    (Report abuse)

    Ross on June 9th, 2008 at 12:11 pm

    @mundundu: For sure it has to do with social class, it is just that in South Africa social class was determined by race as you know. While politically this has changed, economically all that has happened is the separation of the poor and the elite.

    @khathutshelo Ndouvhada: I’ve been an entrepreneur for most of my life. I reckon once you’ve tasted that freedom it’s difficult to be happy in a corporate construction.

    @Ross: Thanks for your thoughts, but I reckon it’s relevant here. To my mind Tech Leader is about the industry. The people, the technology and everything that moves around and between it.

    (Report abuse)

    Mandy de Waal on June 10th, 2008 at 7:37 pm

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    Mandy de Waal is a columnist, writer and journalist. A former broadcast journalist, de Waal is writes for Noseweek, ITWeb, MarkLives, Brandchannel and MarkMagazine. She is part of the judging panel of the Discovery Health Journalism Awards and the MPASA PICA Awards. In her spare time she writes poetry and fiction.

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