(Graphic: John McCann/M&G)
A few weeks ago I appeared on Newzroom Afrika’s Top Stories of the Week programme with the excellent host, Naledi Moleo. It is a news programme that covers the week’s top stories in a similar format as that of sports news channel ESPN.
It sprints through as many topics as possible within a 45 to 60 minute show, inclusive of commercial breaks. One of the topics we touched on was the march against the whites-only Afrikaner settlement of Kleinfontein in Tshwane by the Economic Freedom Fighters. At that stage, the Oval Office meeting between presidents Cyril Ramaphosa and Donald Trump had not yet occurred, but the country was fixated on Trump’s offer for asylum to white Afrikaners.
The discussion got me thinking long after the show. Obviously settlements like Orania and Kleinfontein are racist and must be rejected immediately. They should not be allowed to exist, it is as simple as that.
If we remove the racial dimension from the phenomena of Orania and Kleinfontein, we will discern that there is a much larger sinister global agenda afoot.
American tech billionaires such as Balaji Srinivasan, Marc Andreessen and Peter Thiel, associated with Trump and his Make America Great Again movement, are financially backing Próspera, a city state, on the island of Roatan in Honduras.
These city states have been called different names, such as “charter cities”, “start-up cities”, “freedom cities” and free private cities, so as to make them seem as harmless as possible.
In Honduras, Próspera was created through government-established zones of economic development and employment, the ZEDEs. In the ZEDE, Próspera can operate autonomously from the Honduran government. The idea behind Próspera is to create free-market enclaves with their own rules and laws.
It is governed by a council composed of nine members. Five are elected, while four are appointed by Honduras Próspera Inc, therefore in practice the company has an effective veto power because all decisions require a two-thirds majority. In Próspera the more land you own the more votes you get.
Visitors are required to apply and receive a visa.You enter through a customs border post guarded by the company’s private militia.
Próspera adopts its own civil and commercial codes, which are subject to Honduran criminal law. Its charter disallows land expropriation, but Próspera itself is allowed to incorporate land anywhere on the island of Roatan. Local Hondurans, such as the local Crawfish Rock community, live in fear of their land being taken away by Próspera and its plans for expansion. Próspera collects its own taxes from residents, which includes the businesses located on Próspera. The taxes are low, with business paying only 1% of revenue and being allowed to customise the commercial regulations that apply to them. Personal tax is only 5% and the local government receives no tax revenue from Próspera.
Rich people, especially Americans, go to Próspera seeking experimental medical treatment that is not approved by the US Food and Drug Administration. These are vanity projects such as inserting a chip into your hand so that you can communicate with your Tesla vehicle.
Honduras President Xiomara Castro has vowed to keep her 2021 election campaign promise of dismantling Próspera. Her attempts have been met with stiff opposition by the rich owners of Próspera, who are in turn suing the Honduran government for nearly $11 billion, which is one-third of the Honduran GDP.
A Próspera advocacy group called the Freedom Cities coalition has begun meeting with the Trump administration. Elvira Salazar, a Republican congresswoman from Florida, has claimed that the Honduran government are socialists who do not care for their country when they do not allow ZEDEs to do what they like. The International Centre for Settlement of Investment Disputes, a World Bank-funded institution, an arbitration body established in 1966 to settle legal disputes between international investors and countries, has ruled against the Honduran government, that the investors had to exhaust local remedies before appealing for arbitration, which effectively allows the $11 billion lawsuit to proceed. This is despite the Honduran supreme court’s 2024 judgement that rendered the ZEDEs unconstitutional retroactively.
These elitist enclaves are not exactly new. Victoria Island in Lagos, Nigeria was established in colonial times for the British elite, and in 1960 when Nigeria got its independence, local Nigerian elites joined the British expatriates on the Island.
In the 2024 election campaign trail Trump promised the establishment of freedom cities in the United States. Already there is talk about a freedom city being established north of San Francisco and a crypto state in the Mediterranean. In Zambia there is Nkwashi, which is 36 kilometres east of the capital city Lusaka, that is described as a self-contained city that is privately owned, managed, and autonomous of the government.
As much as we despise Orania and Kleinfontein, and may baulk at the phenomena of Próspera, we are busy establishing similar settlements all over the country. It may not be racist, but the increasing phenomena of golfing and townhouse type estates are essentially classist and elitist.
These estates have their own government called a body corporate, their own private police force, and the body corporate has legislative powers, and acts as the judiciary.
Thus, we are witnessing a return to feudal times with feudal lords and people living in city states.
Initially these were purely residential, governed by an elected body corporate that decided on estate rules on the common areas of parking, gardens and walkways, as well as issues like loud music. Later these estates began creating clubhouses, with shops so you could buy items, as well as have a meal, a drink and get together with other residents.
These estates offer much more today. Besides golf courses they now have gyms, daycare centres, schools and offices that can be rented. It is only a matter of time before national retailers such as Pick n Pay, Checkers and Woolworths enter: soon there will be a shopping mall in an estate.
Farming areas in the Western Cape are being transformed into residential estates. Farm workers and labour tenants, who have lived on the land for many years, are moved off the land and can only work as minimum wage service staff on these estates. The Val de Vie estate in the Cape Winelands, for instance, has properties that cost R6 million for a small house and larger ones at R120 million. It is a small step for such estates to become a Próspera. The Cape Independence and the Referendum parties have previously called for the secession of the province.
Next year we shall be expected to participate in local government elections. All our local governments are failing, even those who claim to be an oasis of success in a desert of ineptitude, and therefore the advent of these private sector enclaves of residential estates are appealing. Especially when crime and grime affect all, both historical townships and suburbs.
Commercial districts, such as city business districts, the so-called City Improvement Districts, and even our 1980s urban strip malls, are also negatively affected by the utter deteriorating local governance.
We will not solve government failures by creating private retreats. But it is equally compelling for political parties and their leaders, especially the ANC, to admit that it is not just the appeal of private retreats that makes an Orania-like golf estate attractive but it is also due to the contempt in which the people are treated in the free South Africa.
Political parties have to reconnect with the people of South Africa, not by saying how much better they are than other failing parties, but by actually really listening and involving the people so that our cities are run better, there is increasing employment for all, and we effectively tackle poverty and inequality.
If we cannot do these things, our country will resemble a medieval feudal state with golf city states while the majority live outside the castle walls, hoping their children will one day be able to live in these enclaves.
Donovan E Williams is a social commentator. @TheSherpaZA on X.