South Africa is under siege
In 2024, South Africa is grappling with an alarming rise in organised crime syndicates, referred to as “mafias,” which have infiltrated key sectors of the economy.
These groups include the construction mafia, extortion mafias targeting businesses, water tanker syndicates, and criminal networks preying on delivery vehicles.
Their activities are causing widespread economic disruption and deepening societal unease.
One of the most notorious threats comes from the construction mafia.
These groups intimidate construction companies and contractors, demanding a share of project funds or forcing businesses to employ their members.
When their demands are unmet, they halt construction projects through violent means, delaying or abandoning critical infrastructure developments.
This practice has had a devastating effect on South Africa’s construction industry.
Public Works and Infrastructure Minister Dean Macpherson has publicly condemned these groups, stating, “We don’t negotiate with extortionists.”
His firm stance reflects the government’s recognition of the severe threat these mafias pose to investor confidence and economic growth.
Macpherson has also highlighted how these groups deter foreign and local investors, further exacerbating the country’s financial struggles.
Multi-billion rand projects in Kwa-Zulu Natal, Gauteng, and the Western Cape are particularly hard hit.
Beyond construction, extortion mafias have embedded themselves into various sectors, targeting businesses ranging from small enterprises to multinational corporations.
Business owners face demands for protection fees under the threat of violence, leaving them with little choice but to comply or risk the safety of their establishments and employees.
This is a major concern in areas such as Cape Town’s CBD.
This environment of fear has stifled entrepreneurship and discouraged economic activity.
The scale of the extortion problem is staggering.
According to the National Joint Operational and Intelligence Structure (Natjoints), between April 2019 and March 2024, over 6,000 extortion cases were reported, resulting in more than 2,300 arrests and nearly 180 convictions.
Despite these efforts, the number of convictions remains disproportionately low, reflecting the complexity of dismantling these deeply entrenched criminal networks.
These mafias thrive in a climate of fear and weak enforcement, leaving a trail of economic stagnation and social instability.
South Africa’s water crisis has also become a lucrative opportunity for organised crime.
The so-called “water tanker mafia” has exploited the country’s water scarcity, targeting delivery vehicles and rerouting critical supplies to the highest bidders.
This exploitation has left vulnerable communities without access to water, compounding existing inequalities.
Water and Sanitation Deputy Minister Sello Seitlholo has expressed his grave concern over the impact of these mafias.
He warned that their interference could paralyse efforts to develop essential water and sanitation infrastructure, further worsening the crisis in regions already suffering from severe drought and unreliable water services.
Delivery vehicles have similarly become a prime target for criminal groups, disrupting supply chains and causing significant financial losses.
Hijackings and thefts of goods in transit have risen sharply, further straining businesses already grappling with high operating costs, especially in the Eastern Cape.
This trend undermines confidence in the country’s ability to ensure the safe and efficient movement of goods, affecting not only domestic trade but also South Africa’s standing as a regional economic hub.
Basic Education Minister Siviwe Gwarube recently raised deep concerns about the increasing rate of extortion in the Eastern Cape as criminal networks expand their operations into educational institutions.
Her nationwide campaign to assess challenges in the education sector has highlighted how schools, once considered safe havens for learners, are now facing a dangerous threat from organised crime.
The economic toll of these organised crime activities is immense.
The construction mafia alone is estimated to have cost the economy billions of rands, with some reports suggesting losses exceeding R70 billion annually.
These figures underscore the critical need for a robust response to mitigate the far-reaching impact of these criminal enterprises.
The knock-on effects are felt in reduced employment opportunities, stalled infrastructure projects, and a growing sense of insecurity among citizens and businesses.
In response, the South African government has ramped up efforts to counteract these mafias.
Law enforcement agencies have intensified operations, leading to several high-profile arrests.
However, the low conviction rates highlight the need for stronger investigative and prosecutorial capabilities.
Minister Macpherson has called for a comprehensive national strategy to combat organised crime, emphasising that only a unified approach can restore investor confidence and ensure the safety of critical infrastructure projects.
Deputy Minister Seitlholo echoed these sentiments, warning of the broader consequences if decisive action is not taken.
“These mafias are not only stealing from the government but from the people of South Africa.
Their greed and violence are undermining the basic right to access water and sanitation,” he said.
His comments reflect the growing frustration among government officials and citizens alike.
Despite these efforts, the pervasive influence of organised crime continues to pose a significant threat to South Africa’s economy and social fabric.
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