The Soweto rebellion brought to the boil a number of challenges confronting the apartheid state. Internally, political and economic crises were feeding into and off of each other. Externally, a burgeoning anti-apartheid movement was hurting the regime through a disinvestment campaign and a growing sports boycott. The Nationalists attempted to deal with these challenges through a series of reforms. At the core of their effort was a renewed drive to facilitate an urban African middle class, to give greater recognition to trade unions, and to create ‘representative’ bodies for Indians and coloureds.

Alongside these reforms, Bantustans would be encouraged to accept ‘independence’ in the hope that an African middle class centred around civil servants with job security and business people feeding off contracts provided by these ‘governments’ would buy into the NP policy of separate development. Similarly, the state hoped to co-opt Indians and coloureds into the broad apartheid project of complete racial segregation. How would the NIC and the broader Indian community respond to these blandishments? Simply put, the ostensibly settled debate over rejectionist participation was reignited − only this time discussions crossed the oceans, capturing the attention of exiles in the leadership of the Charterist movement.

The SAIC was set up in 1968 as a fully nominated body of 25 members. From 1974 its membership was increased to 30, with half the members appointed by government and half nominated by members of other Indian local government structures, such as LACs. Due to pressure from SAIC members, the government passed legislation in 1978 providing for the election of 40 members and 5 nominated members. The government was concerned that the election would be delegitimised before it even got off the ground if the voter turnout was low. And so the carrot of full elections was accompanied by the stick: a fine would be imposed on those who failed to register. By June 1978, 71 per cent of the 360 000 eligible Indian voters had registered.

The SAIC's failure to get concessions from government on issues such as trading rights and work opportunities led some members to moot a boycott of the organisation at a Council meeting in early November 1978.