South Africa’s construction industry, a crucial artery for economic growth, is faced with mounting challenges due to the rise of criminal groups, known as “construction mafias” and extortionists. These organised criminal syndicates target both small businesses and large-scale construction projects, using violence, intimidation, and extortion to demand money, stakes in projects, and “protection” fees. The disruption caused by these groups threatens not only investor confidence but also the functioning of infrastructure development and service delivery throughout the country.
The problem has been intensified by the emergence of “local business forums,” which extort businesses in various sectors, including taxis, households, and construction. They have allegedly imposed financial demands for “community employment,” a 30% inclusion of small businesses (SMMEs) in projects, and payment for “protection” from disruptions. These practices severely undermine economic progress, and have led to widespread disruptions on construction sites, through threats of violence, and property damage.
In 2019, the South African Federation of Civil Engineering Contractors (SAFCEC) raised alarm over R25.5 billion in construction projects being violently disrupted, pointing to the detrimental impact on investor confidence. In response, President Cyril Ramaphosa prioritised combating criminal extortion in businesses, especially within the construction sector, in his 2020 State of the Nation Address. A specialised police task force was established to address the issue, with the National Development Plan 2030 identifying the fight against extortion as a key deliverable.
Read the full story on ProtectionWeb here.
