South African Construction Industry Loses Over R100 billion due to Extortion

In a discourse that has sent shockwaves across the industry, the South African construction industry has reportedly lost more than R100 billion to extortion. The shocking revelation took place at the recently concluded Master Builders South Africa (MBSA) 2023 annual Congress in Cape Town.

The construction industry in South Africa has seen a myriad of challenges that include an overall decline in economic growth in the country. Delayed payments from public service, sluggish transformation, and corruption are amongst the other issues grappling the construction sector.

Musa Shangase, the President of Master Builders South Africa, disclosed the harrowing fact about the rampant extortion issue. According to him, the problem initially sparked off in KwaZulu Natal back in 2014 and has since spiraled, affecting major regions including Gauteng and the Western Cape.

The MBSA Congress gathers industry stakeholders annually and explores various issues affecting the construction industry at large. This year's congress was of particular importance given the magnitude of loss shared.

The rising cases of extortion, corruption, delayed payments, and slow economic growth have been identified as reasons contributing to the massive loss. Immediate measures are being called upon by industry leaders to combat these challenges and restore the health of the construction industry in South Africa.