State capture in South Africa: A critical analysis of its nature, cost and subsequent reforms

Abstract

This article presents a critical and comprehensive analysis of state capture in South Africa, delving into its historical evolution, structural mechanisms, and long-term repercussions. It also examines the extensive financial and social costs associated with state capture, particularly its role in exacerbating economic inequality and fostering systemic governance failures. State capture, characterised by the deliberate co-optation of public institutions by private interests, has significantly altered the operational integrity of the South African government. By systematically manipulating state resources, elected officials and public sector actors have entrenched corruption, thereby undermining public trust and weakening institutional frameworks. The research adopts a qualitative methodology, employing a rigorous desktop analysis of secondary data, including governmental reports, academic literature, and investigative findings from commissions such as the Zondo Commission. The findings indicate that, beyond direct financial misappropriation, state capture has also eroded South Africa’s ability to attract foreign investment, diminished economic competitiveness, and perpetuated sociopolitical instability. Unlike previous research that primarily focused on financial losses, this study expands the discourse to include a critical examination of the sociopolitical and developmental dimensions of state capture. By doing so, it highlights the urgent need for comprehensive governance reforms, stringent accountability mechanisms, and the reinforcement of democratic institutions to mitigate the long-term consequences of state capture in South Africa.