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Winning Back a Nation: Inside McKinsey’s Long Road to Redemption in South Africa
Can McKinsey Win Back South Africa’s Trust
McKinsey once advised some of South Africa’s most important state companies. Today, the global consulting giant is still trying to rebuild its reputation after becoming tied to one of the most painful chapters in the nation’s democracy. The road back is proving far longer than anyone at the firm ever expected.
A reputation lost in the era of state capture
During the years when state-owned companies were targeted by corrupt networks, McKinsey found itself named among major global brands that benefited from government contracts linked to wrongdoing. Bain, SAP, KPMG, and ABB were also implicated in what South Africans call state capture. The fallout was immediate. Trust vanished almost overnight.
McKinsey cooperated with investigators, fired staff who were linked to the scandals, and refunded millions to Eskom and South African Airways. It later agreed to pay more than 122 million dollars to settle a United States investigation into its ties to misconduct involving Transnet.
The firm voluntarily stepped away from all state contracts in South Africa more than eight years ago. Yet criticism continued, including when McKinsey worked for free on G20 projects that showcased the country. Government officials still questioned whether the company had attempted to re-enter public work too soon.
Rebuilding takes years, not months
McKinsey leaders say they are approaching recovery slowly and carefully. They insist that returning to government consulting will only happen once every safeguard is fully secure inside the business.
Trust is something that can disappear in a moment but needs years to earn back. That is the view from the top executives who oversee both McKinsey’s South Africa office and its broader Africa practice. They acknowledge that the scandal will always remain part of the company’s history.
For now, McKinsey has had no talks with government departments about new contracts. Instead, it is concentrating on the private sector. Mining groups, manufacturers, and financial services companies continue to rely on its expertise. Some former clients who walked away during the scandals have begun making contact again.
Still committed to South Africa’s growth
Unlike Bain, which closed its South African consulting division last year after a ban on state business, McKinsey believes that South Africa remains essential to its African future. The country is one of the continent’s biggest drivers of economic activity and a hub for corporate expansion.
Executives say they are hiring across Africa. They are advising companies setting up technology hubs in East Africa and working with sectors that are investing in cleaner energy, food security, and talent development. A strong South African presence, they argue, is vital for that growth.
The long road ahead
South Africans remain fiercely protective of accountability. Any business that played a part, directly or indirectly, in the corruption that drained public institutions faces deep public scepticism. There are no quick fixes.
But corporate South Africa is shifting. Economic recovery, renewed leadership in many sectors, and fresh business priorities create space for rebuilding relationships. McKinsey believes that its remedial actions, combined with the country’s improving trajectory, will eventually open doors again.
For now, the firm knows that every step is being watched. Whether McKinsey can fully regain its standing will depend not on promises but on the consistency of its behaviour in the years to come.
South Africans have long memories when it comes to trust. McKinsey is hoping that one day, the country will remember its contributions more than its failures.
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Source: Moneyweb
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