South African extortion problem

Extortion mafias have become one of the biggest threats to South Africa’s economy in recent years, and what started as just construction mafias have now spread to different industries across the country.

These criminal syndicates, which first emerged in 2014 and thrived during the state capture era, operate under the guise of local business forums to extort money from contractors and developers.

Using the Preferential Procurement Regulations, which require 30% of public sector projects to be subcontracted to local participants, these mafias extort money from businesses. 

While they initially concentrated on KwaZulu-Natal, they have expanded into Gauteng and other regions.

A project manager at Business Against Crime, Roelof Viljoen, attributed the rise of construction mafias to companies’ reluctance to report crimes. 

Some businesses pay extortionists to avoid legal processes, inadvertently fueling the problem. This has allowed mafias to expand into different sectors, including mining.

Aside from construction companies, miners have also reported being extorted by local “mafias” who threaten to disrupt operations. 

The Minerals Council of South Africa has repeatedly raised concerns about these disruptions, saying in a 2022 report that many mining companies have experienced or are experiencing incidents of violence and extortion.

The council said this was driven by demand for tenders, procurement contracts, or community employment at the mines.

“These actions result in massive financial losses to the industry,” the council said.

Viljoen said he fears that this practice could spread to other sectors, further damaging the economy.

This year, South Africa also saw the rise of the so-called “water tanker mafia”, which is entrenching itself in many municipalities across the country and causing chaos by deliberately disrupting the water supply to secure tenders. 

While this mafia has been prevalent in KwaZulu-Natal for over a year, offshoots are starting to spring up in Gauteng.

The use of water tankers in Gauteng has skyrocketed as increased demand for water and deteriorating infrastructure have seen multiple areas go weeks without the precious resource. 

This has resulted in the rise of a ‘water tanker mafia’ that profits from these supply disruptions, with Tshwane being particularly hard hit. 

Themba Fosi, head of utilities, regional operations, and coordination for Tshwane, said the municipality spends around R98 million on water tankers annually. 

“The water tanker mafia is being felt across the city, particularly in Bronkhorstspruit where, in several instances, we found our valves being tampered with,” he said. 

“There is a huge amount of vandalism, and you see this is manmade and not due to infrastructure failure. Eventually, this leads to water tankers being the order of the day.” 

WBHO chairman Louwtjie Nel previously emphasised the urgent need to address the growing tide of crime and corruption. 

He warned that these issues deter businesses and investors, hindering economic growth. Nel urged the government to take decisive action against extortion and corruption, particularly in the construction sector.

Some hope

While extortion mafias are a growing and increasingly prevalent problem, some progress has been made in addressing it.

In August, the Department of Public Works launched independent investigations into extortion at project sites across South Africa. 

“It’s not something we take lightly, but we want to confront it head-on. I’ve said that there’s no room for negotiation. There’s no room for talks. We just need to get on with the job of building infrastructure across South Africa,” said Public Works Minister Dean Macpherson.

“We are being held hostage by a bunch of thugs and thieves. So, we’re very clear on what needs to take place.”

The KZN government has also recently declared a war on these crimes, with the latest incident being the gunning down of six suspected extortionists in a shootout with police earlier this month.

KZN police spokesperson Robert Netshiunda told Newzroom Afrika that charges of extortion are incredibly serious and prevalent in the province. In 2023, there were at least 46 cases of extortion opened.

Public Works and Infrastructure Deputy Minister Sihle Zikalala also recently told Newzroom Afrika that they are optimistic that investigations by the police will uncover the masterminds behind these criminal activities.

He said several initiatives have been taken over the past year to address, prevent and stop these crimes from taking place.

Firstly, a partnership between the Public Works Department and the South African Police Service was established under Zikalala’s term as minister, which included a dedicated unit through the Presidency to address extortion mafias.

Secondly, social facilitation units have been established to ensure that people working at or being subcontracted by sites that may be targets of extortion mafias meet the Preferential Procurement Regulations’ requirements.

Thirdly, he said the increased number of arrests for extortion shows that the state is “upping its arms” and dealing with criminals head-on.