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.
Despite these efforts, criminal activity continues unabated. Heavily armed groups invade construction sites, demand employment for community members, and engage in violent acts such as murders, assaults, and the theft of equipment. There are also reports of road blockages and forced shutdowns of construction sites. Water infrastructure, crucial for municipalities, has also been targeted by these groups, seeking to maintain control over municipal water supply contracts. In addition, contractors often face pressure to pay for security or face the destruction of their businesses.
As a response, a multidisciplinary approach has been proposed, involving all security clusters, government departments, financial institutions, and NGOs. The approach focuses on proactive measures, such as criminal intelligence, threat analysis, and syndicate identification. Efforts include undercover operations, surveillance, and the use of informants to disrupt and dismantle criminal syndicates involved in extortion. The Asset Forfeiture Unit has been engaged to seize illicit assets, and a dedicated witness protection programme is in place to protect those who come forward with critical information.
The South African Police Service (SAPS) has made significant strides in addressing the problem by forming dedicated extortion investigation teams across all nine provinces. Between 1 April 2019 and 31 March 2024, a total of 6,056 extortion cases were reported across the country, with Gauteng and the Western Cape being the highest contributors. From April to November 2024 alone, 1,448 extortion cases were reported, with 658 arrests made. Notable incidents include the arrest of men attempting to extort companies installing fibre cables and construction contractors, along with disruptions at significant infrastructure projects such as road and hospital constructions.
The establishment of the national extortion hotline system, which is being consolidated into a single 24/7 helpline, will streamline the reporting and handling of extortion cases. The SAPS has also focused on tackling “prank calls,” which hinder the reporting process, by launching public awareness campaigns to promote responsible hotline use.
Moving forward, the fight against extortion in South Africa’s construction industry requires strengthened provincial extortion teams, centralized management of extortion cases, and enhanced coordination between law enforcement, private sector entities, and relevant government departments. The success of this effort hinges on collaboration between all stakeholders to ensure that these criminal activities are stopped, and that the construction industry can once again contribute to South Africa’s economic growth without the burden of violent extortion.
