South Africa’s government says progress is being made against criminal groups operating in the construction sector, but warns that extortion networks continue to pose a major risk to infrastructure development across the country.
Over the past five years, more than 180 public infrastructure projects valued at approximately R63 billion have faced disruptions linked to organised criminal activity. These interruptions have affected critical developments including roads, bridges, schools, clinics, housing projects and water infrastructure.
Authorities say criminal syndicates have used intimidation, extortion and violence to pressure contractors and secure financial benefits from public projects, often causing costly delays and suspensions.
The issue has become a growing concern for policymakers, industry stakeholders and local communities, particularly as South Africa seeks to accelerate infrastructure investment to stimulate economic growth and job creation.
Government reports progress against extortion networks
The Department of Public Works and Infrastructure (DPWI) says its response has intensified since the signing of the Durban Declaration during the National Construction Summit in November 2024.
According to Public Works and Infrastructure Minister Dean Macpherson, more than 770 incidents involving construction-related extortion and intimidation have been reported nationwide since the declaration was adopted.
Those cases have led to 241 arrests and 176 convictions, reflecting a more coordinated effort between government departments, law enforcement agencies and industry participants.
DPWI spokesperson Lennox Mabaso said one of the most encouraging developments has been recorded in KwaZulu-Natal, a province long associated with construction-related criminal activity.
Official figures indicate that site disruptions in the province have fallen dramatically, from more than 60 incidents per month in 2025 to fewer than 10 incidents per month this year.
Political parties and business organisations have repeatedly warned that construction-related crime undermines economic development by delaying projects, increasing costs and discouraging investment.
ActionSA MPL Thoko Mashiane said communities ultimately bear the consequences when projects are halted, as delays often affect access to essential services while reducing employment opportunities for local residents.
Criminal groups adopt new tactics
Despite recent gains, authorities acknowledge that construction-related criminality is becoming increasingly sophisticated.
Private investigator Mike Bolhuis has warned that extortion networks are no longer limited to physical site invasions. In some cases, criminal elements are believed to have become embedded within sections of the construction value chain.
Industry observers have reported allegations that some contractors have begun factoring potential extortion losses into project budgets, highlighting the financial impact these networks can have on public infrastructure spending.
Government officials say newer threats include the use of front companies, coordinated supplier arrangements and attempts to manipulate procurement processes to gain access to state contracts.
To address these risks, the government is introducing additional safeguards through the South African Construction Action Plan. Proposed measures include procurement reforms, real-time tender monitoring systems, procurement war rooms, enhanced vetting of contractors and subcontractors, digital project tracking tools and the development of a national blacklist database.
Authorities are also developing a social facilitation framework designed to strengthen engagement with communities before projects begin. Officials believe early consultation can help resolve legitimate concerns and reduce opportunities for criminal groups to exploit local grievances.
While progress has been made, government officials maintain that the fight against construction-related extortion remains a long-term challenge requiring sustained cooperation between law enforcement agencies, the private sector and affected communities.
Source: Department of Public Works and Infrastructure (DPWI)