Construction mafias in South Africa have caused economic losses totaling R63 billion over the past five years, disrupting projects and increasing costs for developers and workers. The criminal groups have used extortion and violence to sabotage construction efforts and demand protection fees, particularly in the fibre network sector.
On 19 November 2024, Public Works and Infrastructure Minister Dean Macpherson signed the Durban Declaration, a partnership between his department, the South African Police Service, the National Treasury, and the Construction Industry Development Board. The agreement aims to end the widespread disruption caused by these criminal organizations at construction sites nationwide.
Deputy Minister of Finance Ashor Surapen confirmed that the impact of extortion by construction mafias has been severe, with the World Bank estimating that it costs South Africa 9.3% of its GDP. This includes disruptions to construction projects, security costs, and broader economic consequences. Since 2019, the total financial damage has amounted to R63 billion.
Minister Macpherson addressed the issue at the National Construction Summit on 20 November, held in Durban, where he reaffirmed the government’s commitment to tackling the construction mafia problem. “We will no longer negotiate with criminals to build vital infrastructure,” he stated, adding that this was not merely a discussion but a step toward taking decisive action.
The summit was attended by Minister of Police Senzo Mchunu, senior officials from KwaZulu-Natal, and high-ranking police officers, further illustrating the government’s unified approach to the crisis. Earlier in 2024, Macpherson had warned that construction mafias would be treated as “enemies of the state,” signaling tougher measures to ensure projects are not delayed or compromised.
The construction mafias have also targeted fibre network operators (FNOs), using violent intimidation to extort fees for “protection” during rollouts. Link Africa, a major player in the sector, reported spending approximately R1 million per month on security to protect staff and operations from these criminal groups.
Fibre network companies have also faced significant operational challenges as mafias control specific territories, leading to violent confrontations when ownership over areas changes. Companies have been forced to navigate these risks, with threats of violence against staff and theft of equipment becoming a persistent concern.
