A thorough report on the construction mafia in South Africa

‘Construction mafias’ are holding a key South African economic sector to ransom

South Africa’s construction industry is in crisis: as the Bargaining Council for the Civil Engineering Industry (BCCEI) stated in April 2022, “the problem of intimidation, extortion and violence on construction sites has reached crisis levels”. The “construction mafias” – as they have been dubbed – who are responsible for this intimidation have become widespread since their first appearance in KwaZulu-Natal.

Today, these groups have become deeply entrenched in the construction sector. In 2020, the South

African Forum of Civil Engineering Contractors (Safcec) estimated losses due to these disruptions amounted to R40.7-billion nationally.

In the absence of any effective legal recourse and facing the threat of violence, many businesses have had to concede to these mafias’ demands, legitimising and solidifying their role in the industry. This could have disastrous economic effects in the long term for a sector that is already under strain.
((c) Daily Maverick 2022/06/16)

By Global Initiative Against Transnational Organized Crime

Published by the Global Initiative against Transnational Organised Crime, this report provides government, businesses, and communities with recommendations on building a comprehensive strategy for dealing with systemic extortion.

"Dubbed the ‘construction mafia’ in the media, these people have organized themselves into groups known as ‘local business forums’ and invaded construction sites across the country, demanding money or a stake in development projects in what can arguably be described as systemic extortion. These activities have been fuelled by the weak response from the state, allowing them to expand their activities. In 2019, at least 183 infrastructure and construction projects worth more than R63 billion had been affected by these disruptions across the country. Since then, invasions have continued at construction sites across South Africa. 

Disrupting the construction extortion economy, particularly in areas where it has taken root, will not be an easy task. However, not addressing it will affect the construction sector and the country, and failure to deal with this type of extortion is also likely to spread such practices to other sectors of the economy.

This report provides government, businesses, and communities with recommendations on building a comprehensive strategy for dealing with systemic extortion and strengthening partnerships between private sector organizations, local communities, civil society organizations, local government, and state actors."

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