Business Corruption in South Africa
South Africa performs better than regional averages across a number of key measurements on corruption, indicating fewer risks when doing business in the country; simpler procedures, smoother interactions with tax officials and easier enforcement of commericial contracts result in relatively high confidence in the country's institutions.
Existing laws are often inadequately enforced, and public services are plagued by red tape. South Africa has a robust anti-corruption framework, but laws are inadequately enforced. Public procurement is reported to be especially prone to corruption, and bribery thrives at the central government level. Companies cite the procurement of goods for private companies as also likely to involve demands for bribery payments.
The Broad-Based Black Economic Empowerment (BBBEE) strategy aims to increase the participation of black citizens in the economy but has been criticised both for providing too much preferential treatment in the awarding of government contracts to wealthy black elites and for leading to increased corruption in public procurement. The pending Protection of State Information Bill poses a potential setback to transparency and freedom of expression in the country.
Publication date: October 2014
Data verified by GAN Integrity Solutions