Political analyst, Ongama Mtinka, says the estimated cost of state capture possibly amounts to the country’s annual budget.
This after President Cyril Ramaphosa said that state capture could possibly have cost South Africa more than R500 billion at the international investors at the Financial Times Africa Summit in London.
Speaking on Morning Live, Mtinka says whatever model was used to arrive at the estimated cost is most likely tracing costs which are directly related to the state capture transactions.
He says there are indirect costs.
“If you factor in some of the qualitative aspects of state capture, you could easily have that figure go even above a trillion. It’s a huge amount of money. The South African budget annually between 2009 until now ranges between a trillion to 1.8 trillion. So that is our annual budget which is the extent to which this figure impacts in the country’s macro economy.”
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At the Summit the President pleaded that Africa needed investment much more than it needed foreign aid.
He also acknowledged significant issues facing South Africa, promising to solve problems at Eskom, as well as corruption and unemployment.
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