By Busiswe Mavuso
A critical decision looms that will affect South Africa’s business environment for the next decade. The president has appointed a committee to select the next National Director of Public Prosecutions, with six candidates now shortlisted.
Current incumbent Shamila Batohi will retire next year when she reaches retirement age, after seven years rebuilding an institution that was deeply compromised by state capture.
This appointment matters to business. The rule of law is essential to a functioning democracy, but it is also critical to the business environment. An unreliable criminal justice system imposes huge costs on business, not only through increased crime, but through the broader loss of trust across the economy.
When counterparts can’t be relied on to stick to agreements, when the probity of those in business can’t be trusted, transaction costs multiply invisibly across every deal. This keeps a handbrake on our growth.
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