Black Business Council Demands Ban on McKinsey & Company in South Africa

The Black Business Council (BBC) has called for McKinsey & Company to be banned and blacklisted in South Africa, labeling those continuing to engage with the consultancy as complicit in funding state capture.

The demand follows McKinsey’s agreement to pay R2.2 billion to settle criminal allegations related to corruption. This settlement addresses both a U.S. investigation and charges brought by South Africa’s National Prosecuting Authority (NPA).

A History Tied to State Capture

McKinsey has faced intense scrutiny in South Africa for its involvement in state capture scandals, particularly its contracts with state-owned enterprises like Eskom and Transnet.

Despite previous apologies and promises to reform, the consultancy has struggled to regain trust in South Africa.

“Any organization continuing to do business with McKinsey is indirectly supporting the looting of state resources,” the BBC stated.

Wider Implications for Business Practices

The BBC’s call for a ban reflects growing frustration over the continued operation of companies implicated in corruption.

• For McKinsey: The consultancy faces reputational and operational challenges, as public and private organizations may reconsider partnerships.
• For South Africa: The case highlights the government’s focus on holding corporations accountable for their role in state capture.

McKinsey’s Position

McKinsey has reiterated its commitment to transparency and compliance, stating that the R2.2 billion settlement reflects its efforts to resolve past issues and move forward.

“We remain committed to ethical business practices and supporting South Africa’s development,” a McKinsey spokesperson said.

The BBC has urged both the public and private sectors to cease all engagements with McKinsey and for authorities to impose stricter measures to ensure accountability.

This development raises critical questions about corporate ethics, accountability, and the steps needed to restore trust in South Africa’s public and private institutions.

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