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Construction Mafias in South Africa: A Multi-Billion Rand Challenge

Published November 26, 2024
2 months ago

The recent rise of construction mafias in South Africa has led to astronomical losses, both in terms of finance and development progression. Over the past five years, these criminal entities have cost South Africa a staggering R63 billion, attributed to project disruptions and increased security measures. This alarming figure underscores a national crisis that threatens the very infrastructure and development of the country.





On 19 November 2024, Public Works and Infrastructure Minister Dean Macpherson took a significant step forward by signing the Durban Declaration. This comprehensive initiative, backed by the South African Police Service, the National Treasury, and the Construction Industry Development Board, aims to eradicate the disruptive activities of construction mafias across South Africa.


During his keynote address at the National Construction Summit on Crime-Free Construction Sites, Minister Macpherson articulated the severity of the situation, particularly highlighting Durban, KwaZulu-Natal, as the epicenter of these criminal operations. His speech resonated with the urgency to restore law and order and the necessity to halt negotiations with these criminal groups that compromise the country’s development projects.


Construction mafias not only hinder the building of essential infrastructure like roads, dams, and schools but have also taken to intimidating fibre network operators. Their tactic often involves violent extortion attempts, demanding protection fees and forcibly involving their personnel in projects, thus infiltrating various sectors and exacerbating the security dilemma.


Link Africa, one of the companies severely affected by such criminal activities, reportedly spends about R1 million monthly on security to protect its infrastructure and personnel. These expenditures are a testament to the pervasive influence of construction mafias and their capability to deploy extreme measures, including physical intimidation with military-grade weapons.


With the declaration signed and a collective commitment from varying governmental levels, there is a palpable determination to reclaim control and safeguard the nation's construction sites. Premier of KwaZulu-Natal, other deputy ministers, MECs, and senior police officers all stand united with this initiative, marking it as more than mere rhetoric; it is a decisive stride towards action.


The economic implications are profound. The World Bank indicates that the extortion activities by these mafias could account for around 9.3% of South Africa's GDP when extrapolated over time, showing not only immediate financial impacts but also long-term economic degradation.


The South African government's response, treating construction mafias as 'enemies of the state,' sets a stringent tone for future interventions. The persistence of these criminal activities calls for a robust and unyielding response to protect national interests and ensure the safety and progression of infrastructure projects across the country.


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