Construction mafia crisis threatens South Africa’s development: experts warn of serious consequences

Azra Hoosen | [email protected]
August 23, 2024 | 6:30 PM CAT
2 min read

The rise of criminal racketeering rings targeting construction sites across South Africa poses a serious threat to the country’s economic potential, particularly as the government seeks to transform the country into a construction hub. What began as a handful of “business forums” in KwaZulu-Natal extorting construction sites around 2014/15, as detailed in a report by researcher Jenni Irish-Qhobosheane, for the Global Initiative Against Transnational Organised Crime, has escalated into a national crisis with the emergence of widespread “construction mafias”.

“We saw it start in KZN, it was one of the fastest growing extortion networks, from there it expanded across the province, there wasn’t a single construction site that wasn’t affected, now it’s operating across the country,” she said.

The construction sector, which is of great importance for employment and infrastructure development, is increasingly destabilised by these criminal activities.

Irish-Qhobosheane stressed that extortion groups often raid sites, armed and threatening, and demand up to 30% of the contract value of a project under the guise of “protection”. This practice is fueled by weak state responses and alleged connections between some business forums and political figures.

“It’s becoming a bit of a merry-go-round for the construction companies, given what they encounter every day on the job site,” she said.

Department of Public Works and Infrastructure (DPWI) Minister Dean Macpherson stressed that breaking the power of these mafias is crucial to achieving the government’s construction targets. The DPWI believes that addressing this issue is essential to maintaining investor confidence and creating jobs.

“You really have to distinguish between local communities saying they want a bigger stake in projects, which is a legitimate demand, and these criminal elements who go through business forums on the ground, disrupt those sites, make threats against heavily armed people and demand 30%, sometimes even put a bullet in the ground and say is your life worth that bullet,” Irish-Qhobosheane said.

She emphasized that the impact of these criminal racketeering groups extends beyond white-owned businesses or larger corporations. Smaller SMEs are also targeted and negatively impacted, as the mafias impose their demands and often exclude these smaller businesses from opportunities and activities.

Efforts to combat this crisis include specialized units within law enforcement, the creation of the Infrastructure Built Anti-Corruption Forum (IBACF), and ongoing investigations leading to arrests and prosecutions. Despite these measures, the persistent nature of the problem requires a zero-tolerance approach and proactive strategies from construction companies to mitigate extortion risks.

LISTEN for the full interview with Ml Sulaimaan Ravat and Jenni Irish-Qhobosheane, a researcher at the Global Initiative Against Transnational Organised Crime, here.