The post-apartheid South African government under the leadership of the African National Congress (ANC) has since 1994 pre-occupied with formulating and implementing macro and micro economic reform measures aimed at changing the skewed and asymmetrically structured economy. Disappointingly, the government has failed to achieve what it had set out to do. The challenges of poverty, unemployment and inequality still continue to loom large and engulf the majority of South African black population. Using secondary and primary data this chapter interrogates post-apartheid South Africa’s formulation and implementation of policies as a measure of state capacity. It argues that post-apartheid South Africa is beset with a crisis of state capacity which constrains its policy formulation and implementation processes to yield intended outcomes. It suggests that state fragility in South Africa is mainly a result of state incapacity.