Bain & Company South Africa shutdown after controversy
Bain and Company
In a significant move that marks the end of an era, global management consultancy Bain & Company has announced the closure of its consulting operations in South Africa. After nearly three decades of presence in the country, the Boston-headquartered firm will cease all local consulting activities, retaining only its Johannesburg office as a back-office services hub supporting global clients.
This decision comes amid persistent reputational damage linked to Bain’s involvement in South Africa’s infamous state capture saga under former President Jacob Zuma. The consultancy’s work with the South African Revenue Service (SARS) during Zuma’s administration remains a focal point of controversy and scrutiny.
The State Capture Shadow
Bain was contracted in 2015 to restructure SARS, an institution previously lauded for its efficiency and integrity. However, over the following years, SARS experienced a dramatic decline in effectiveness, coinciding with the Zuma government’s efforts to undermine its leadership and capabilities. Bain’s involvement became deeply problematic when the Zondo Commission—South Africa’s judicial inquiry into state capture—found that Bain had colluded in activities that contributed to weakening SARS.
Although Bain admitted to errors and irregularities in how it secured its contracts and conducted its work between 2014 and 2017, it denied any intention to undermine SARS or partake knowingly in corrupt practices. Investigations by Baker McKenzie concluded that Bain had not aimed to “destroy or undermine” SARS but acknowledged serious lapses in leadership, particularly by the former head of Bain South Africa’s office, who exhibited poor judgement.
Despite these findings, the South African government remained sceptical. In September 2022, National Treasury imposed a 10-year ban on Bain from doing business with the state. This ban, along with persistent public mistrust, significantly hampered Bain’s ability to operate effectively within the country.
The Decline and Exit
The fallout from the scandal extended beyond public sector contracts. Bain’s struggle to regain credibility also impacted its private sector engagements and its ability to attract and retain talent. A source familiar with the firm explained that the “stigma” from its past involvement in the SARS affair was a major barrier that the consultancy simply could not overcome.
By mid-2025, Bain opted to cease its South African consulting operations altogether, choosing instead to repurpose its Johannesburg office as a service hub to support its global business. Importantly, the firm confirmed it would retain most of its local employees, focusing on back-end functions rather than client-facing advisory services.
Wider Implications and Industry Repercussions
Bain’s exit reflects broader challenges faced by global consultancies implicated in South Africa’s state capture scandal, including McKinsey, KPMG, SAP, and ABB. The reputational damage suffered by these firms has had lasting impacts on their operations in the country.
For Bain, the scandal has had repercussions beyond South Africa. In 2022, the UK government imposed a three-year ban on the consultancy from tendering for public contracts, although this ban was later lifted following legal challenges.
Meanwhile, South Africa’s business community remains wary. The Black Business Council recently called on President Cyril Ramaphosa to reject reports prepared by Bain and McKinsey for the B20, the business arm of the G20, citing their association with the state capture scandal. Ramaphosa himself publicly urged entities to sever ties with Bain, signalling the depth of mistrust towards the firm.
