The first volume of Judge Raymond Zondo's report on State Capture lays bare why investment flows into South Africa have been so meagre. A failed and looted state is a magnet for criminals, not legitimate investment.
The word 'investment' appears 11 times in the 874 pages of the Judicial Commission of Inquiry into State Capture Report: Part 1. Yet the document will be scrutinised closely by the investment community and it lays bare a salient fact: a captured state is a failing state, and a failing state is the biggest deterrent there is to investment.
The business and investment community struggles daily with the consequences of the State Capture era.
"Bulk commodity exporters have ... experienced an opportunity cost of at least R30-billion because of the inability by Transnet to provide a contracted service to deliver iron ore, coal, chrome and manganese to the ports," Minerals Council South Africa, the main industry body representing the mining sector, noted on Thursday.
"The reasons given by Transnet include crime on its rail network, which speaks to ineffectual policing by the state on a strategic national asset, and the difficulties to procure spares for locomotives bought in a multibillion-rand programme cancerous with corruption....