The impact of organised crime on South Africa’s construction industry

In recent years, South Africa’s construction industry has faced a growing crisis from organised crime groups. The so-called "construction mafia" have created an environment of fear and uncertainty, using extortion, violence and intimidation to force building companies and workers into submission. It’s a problem that has led to financial losses and stalled infrastructure development as well as endangering the lives of those who work on construction sites across the country, writes John Ridgeway.

The "construction mafia" in South Africa began to gain attention around 2014. Organised crime groups, largely gang-affiliated, began to infiltrate the construction industry, particularly in government-funded infrastructure projects. These gangs use tactics commonly associated with traditional mafia activities, including demands for "protection fees" or a share of project budgets, especially on public works and housing projects. If construction companies do not comply, these groups often resort to violent methods, which can include assault, threats to workers and management, or property damage.

In many cases, gangs demand up to 30% of a project's value as a fee. While they justify these demands under the guise of community involvement or job creation for locals, their true aim is control over lucrative contracts and revenue streams. Often, these gangs insist that contractors employ their affiliates or members from local communities, thereby ensuring a portion of wages and influence within the project. The most notorious cases have been reported in regions such as Gauteng, KwaZulu-Natal, and the Western Cape, where these gangs operate with near impunity, undermining efforts to complete vital projects​

The presence of the construction mafia has a twofold effect on the industry. First, workers, engineers, and managers on-site are exposed to frequent intimidation and life-threatening situations, which detracts from productivity and morale. Companies operating in regions heavily affected by these gangs must make difficult choices - either comply with the gangs’ demands or face the risk of shutting down projects. In Cape Town, contractors on several housing developments abandoned projects entirely due to sustained harassment and violence from local gangs, some of which have close ties with influential criminal networks​. Click link to read more:

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