The house that Zondo built: State Capture Commission implications for local economic development in South Africa’s construction sector

Abstract

Background: The Zondo Commission exposed how corruption and collusion undermined South Africa’s state and business relations. However, little is known about its impact on small businesses and local economic development, particularly in the construction sector.
Aim: This study explores the perspectives of small business owner-managers in the Eastern Cape, interviewed during a national construction summit in East London.
Methods: A sample of 25 small business owners based in the local economies of the Eastern Cape Province of South Africa was interviewed for this study, all participating at a national construction sector summit in East London. Thematic analysis was done using qualitative solutions and research (QSR) NVivo 9 software.
Results: Using building trade metaphors to frame the findings, this study identifies three central themes and their implications for local economic development. Firstly, there is a need for scaffolding, concerted efforts to establish consolidated partnerships between the state and business sectors to support an ethical code of practice. Secondly, a gateway must be provided as an access point for anonymously reporting any violations of this code. Thirdly, a strong foundation is essential to uphold ethical standards, especially within procurement processes.
Conclusion: The findings of this research highlight the need for collaborative efforts to fortify an ethical framework for local economic development within the construction sector.
Contribution: By proposing structural reforms to reinforce ethical standards in procurement and professional conduct, this study contributes to the body of knowledge on post-state capture reform and provides actionable insights for policymakers aiming to strengthen ethical accountability and support sustainable practices in South Africa’s small business sector.