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February 5, 2025

South Africa Is Getting Strong-Armed By Mafia-Style Extortion Syndicates

It's like a bad episode of Narcos, except nobody's calling "cut."

[Image: GoodFon]

South Africa’s economy is basically getting strong-armed by mafia-style extortion syndicates that have wormed their way into nearly every industry.

It’s like a bad episode of Narcos, except nobody’s calling “cut.”

Per BusinessTech, a report presented to Parliament’s police portfolio committee lays it all out in grim detail: organised crime in the country is getting more and more hectic. Ian Cameron, the police portfolio committee chairman, says these extortion rackets have crept into everything from tiny spaza shops to billion-rand construction projects.

Chatting to eNCA, Cameron straight-up called out senior justice officials, hinting that none of this would fly without some high-level enablers turning a blind eye (or maybe even pocketing some cash), exposing corruption as a key enabler of these criminal networks.

Construction is getting hit particularly hard by the so-called “construction mafia.” These okes are shaking down sites in Cape Town and KwaZulu-Natal like they own the joint, demanding protection fees or even a slice of the pie. They’ve evolved from dodgy gangs into polished syndicates that pretend to be “business forums.” Right.

It’s not just the construction sector feeling the heat, though. Cape Town businesses are also getting squeezed. Fancy cafes, high-end apartments, and nightlife spots are all being forced to pay protection fees or face violent consequences. And if you think small businesses are safe, think again—nobody’s off the hook.

And wait, it gets worse. There’s a “tanker mafia” exploiting the country’s water crisis, controlling who gets access to water in vulnerable communities – no pay, no water. This next-level exploitation isn’t just bad for business; it’s bad for people trying to survive, exacerbating social inequalities, as those who cannot afford to pay are left without basic necessities.

The Global Organised Crime Index backs up all the drama, confirming that extortion and protection racketeering are basically part of the South African landscape now, with everything from informal businesses to mining and transport feeling the heat.

In Gauteng, some of these dodgy syndicates have even rebranded as legit security companies. Slick, right? But they’re still running on violence and intimidation. And just to add a cherry on top of this crime sundae, kidnapping for ransom has become a full-on business model.

Then there’s the plot twist straight out of a crime series—turns out some cops are in on it too. Crime intelligence sources revealed that officers, from constables all the way up to brigadiers, are playing for the wrong team. One case in the Eastern Cape saw an officer who was supposed to be investigating syndicates getting busted as a key player himself. Arrested at Mall of Africa, nogal. Four more cops from Ngcobo and East London were also caught up in similar messes.

Acting Deputy Police Commissioner Lieutenant General Shadrack Sibiya acknowledged the arrests but stayed vague on the numbers, which doesn’t exactly inspire confidence. Cameron reckons the problem’s getting worse because people don’t take extortion as seriously as crimes like hijacking. And since the penalties are pretty weak, criminals aren’t breaking a sweat over it. Out of 6,000 extortion reports since 2019, only 178 have led to convictions. That’s a dismal conversion rate by anyone’s standards.

Most cases get dropped because witnesses are too scared to testify. Can’t really blame them when you’ve got these syndicates lurking in the shadows.

The government’s finally stepping up, though. Minister of Public Works and Infrastructure Dean Macpherson came in swinging at the National Construction Summit, making it crystal clear: no more negotiating with criminals.

“We will no longer be negotiating with criminals just to be able to build the essential roads, dams, schools, and hospitals that our people need,” Macpherson asserted.

The summit wrapped up with pledges to beef up legislation, improve crime response strategies, and set up proper reporting systems to actually nail these guys. Macpherson admits it’s time to put policies back on track to protect people’s rights and help the economy grow.

Fingers crossed this isn’t just more political lip service.

[Source: BusinessTech]