A new type of mafia hitting businesses in South Africa

Freight and logistics businesses in South Africa are now being targeted by organised criminal syndicates in “mafia-style” attacks on delivery vehicles.

This trend, prevalent in regions like the Eastern Cape, has brought economic disruption, heightened fear, and further strains on an already fragile economy.

The emergence of these groups signals an evolution in organised crime, as criminal syndicates exploit the vulnerabilities of businesses and public services for profit.

Several mafia-style groups have already become well-known for their involvement in illegal activities across various sectors.

One prominent example is the “construction mafia,” which has disrupted projects nationwide.

These groups, often associated with local business forums or connected to larger criminal networks, extort a share of construction project profits through intimidation, violence, and threats.

Contractors across South Africa have increasingly been forced to comply with their demands or face severe repercussions, leading to significant project delays and financial losses.

The prevalence of such groups in construction has become a serious impediment to development in an industry critical to South Africa’s infrastructure and economic growth.

Likewise, the “water tanker mafia” has capitalised on South Africa’s water crisis, a chronic issue affecting many communities.

In regions with inadequate municipal water supply, these groups control the distribution of water, charging exorbitant fees to deliver this essential resource.

Exploiting residents’ desperation, they have turned water scarcity into a lucrative racket, amplifying social tensions and adding to the hardships faced by vulnerable communities.

A new wave of criminal syndicates targeting business-owned delivery vehicles is now creating additional challenges.

Data from Tracker South Africa’s Vehicle Crime Index reveals a marked increase in hijackings of business vehicles compared to private vehicles, indicating that organized crime has shifted its focus to more profitable targets.

In the first half of 2024 alone, hijackings accounted for 54% of all vehicle-related crimes, with business vehicles bearing a disproportionate risk.

In the Eastern Cape, for example, business vehicles are 43% more likely to be targeted than personal vehicles, with courier vans and cargo trucks facing the highest risk.

These vehicles often carry valuable goods, making them attractive to criminal groups looking to seize and resell items quickly for untraceable cash.

According to Gavin Kelly, CEO of the Road Freight Association (RFA), road freight businesses face “mafia-style” attacks, with hijackers aiming not only to seize the vehicles but also to take the cargo they carry.

This added layer of profitability has intensified the risks facing delivery and logistics companies, compelling them to invest in costly security measures.

Major courier companies, including industry players like The Courier Guy, have had to deploy armed escorts and implement other robust security protocols.

These additional expenses are shrinking profit margins, creating significant challenges for logistics companies striving to maintain profitability in an environment of escalating costs and ongoing criminal threats.

The complexity of the issue varies by region.

As Duma Ngcobo, Chief Operating Officer at Tracker, explains, “Crime tends to shift across provinces over time, and there are different levels of crime based on the sophistication of the syndicates.”

In Gauteng, for instance, keyless entry relay attacks have made theft more common than hijacking, as criminals use advanced technology to access vehicles.

In contrast, the N2 corridor toward Gqeberha has seen a surge in hijackings, likely driven by opportunistic crime fueled by economic instability and high unemployment in the Eastern Cape.

For these criminals, hijacking delivery trucks and looting their contents offer quick, untraceable profits, exacerbating the challenges faced by road freight businesses operating in the region, he said.

As these mafia-style groups continue to proliferate, South African businesses are under increasing pressure to adapt to a more hostile environment.

The cumulative impact of such organised criminal activity has serious implications for the country’s economy, as rising security costs erode profitability, and businesses are forced to weigh the risks of operating in certain areas.

Addressing this complex and evolving threat will require coordinated efforts from both the private sector and law enforcement to restore security and enable businesses to operate sustainably amidst South Africa’s growing crime challenges.

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