Crime is so bad in one South African province that businesses are leaving

Business leaders and experts have noted that high levels of crimes, including kidnapping and extortion, are threatening business confidence in the Eastern Cape. 

This was highlighted during the recent Ultra Performers Business and Leadership Gala in Gqeberha last week.

During the event, stakeholders within the Eastern Cape’s business sector warned that the escalating crime rate is driving investors away.

They noted that the province has been plagued by cases of extortion and kidnapping of business people, which led to some businesses closing in the province.

One of these stakeholders included property mogul Sisa Ngalwana, who has successfully developed malls across South Africa.

He noted that extortion and the targeting of businesspeople through kidnappings have a devastating impact on the province’s economic prospects. 

The growing problem of these crimes is evident in the recent cases of reported kidnappings in the province.

This week, the Hawks confirmed that a Chinese national was kidnapped while travelling from a fresh produce market in Gqeberha to his business in Kariega. 

Just weeks earlier, a Pakistani businessman was kidnapped in Graaff-Reinet, with a ransom demand of around R4 million. 

eNCA reported that the Pakistani business community in the Buffalo City Metro highlighted that nearly 200 foreign nationals from Pakistan and India had been kidnapped in the Eastern Cape since 2022.

The actual number is likely much higher when factoring in cases involving Ethiopian, Somali, and Bangladeshi business owners.

This alarming trend of kidnappings is also noted in the latest crime statistics from the South African Police Service (SAPS).

The report showed that between October and December 2024, 205 kidnappings were reported in the province, averaging more than two kidnappings per day.

The Nelson Mandela Bay Business Chamber has also expressed concern about the rising levels of violent crime, including kidnappings and truck hijackings. 

Threat to business

The chamber CEO Denise van Huyssteen told News24 that the SAPS in the province must be allocated more police members and resources. 

Van Huyssteen acknowledged that the Eastern Cape’s high poverty and unemployment levels contribute to criminality but said that this is no excuse for “allowing criminality to continue unabated.” 

She added that without safety and security, investment will dry up, threatening economic growth and job creation. 

“Investment is critical to create employment, but investors will not come to countries and cities where it is not safe for their employees and businesses to operate their businesses,” she said. 

Tourism, another key economic sector, is also at risk. If South Africa gains a reputation as an unsafe destination, thousands of jobs could be lost.

The Democratic Alliance (DA) echoed the concerns raised by businesses, pointing out that rampant crime is crippling investment and driving businesses away. 

“The fact that kidnappings, hijackings, and organised crime are happening so brazenly proves that criminals still feel emboldened,” the DA said. 

“This is because crime intelligence in the Eastern Cape remains dangerously under-resourced. SAPS are left to respond to crime instead of preventing it.”

Responding to the growing crisis, Minister of Police Senzo Mchunu addressed the issue at the Ministerial Business Partnership Dinner earlier this month. 

He warned that violent crimes like kidnapping and extortion threaten not only the economy but the country’s democratic institutions. 

“Such criminality undermines investor confidence and hinders national development,” Mchunu said.

The Minister reaffirmed that SAPS is constitutionally mandated to ensure the safety of all South Africans, a responsibility he described as solemn, not symbolic. 

However, he admitted that vision alone is not enough and that the police require proper resources, infrastructure, skilled personnel, and financial investment to become effective. 

He added that the department is prioritising the adoption of advanced technology, the strengthening of crime intelligence, improved detective work, revitalisation of forensic services, and better working conditions for officers to combat these crimes.