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Why extortion and ‘protection’ racketeering are surging in South Africa | DW News

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**Breaking News: Extortion and Protection Racketeering Surge in South Africa’s Construction Sector**

In a shocking escalation of organized crime, South Africa has emerged as the sixth worst country globally for extortion and protection racketeering, according to the Global Organized Crime Index. The construction industry is bearing the brunt of this crisis, with businesses facing demands for staggering sums—up to 30% of project costs—by armed gangs who claim to offer “protection.”

In Cape Town’s Drift Sands, construction sites are now fortified with armed guards as gangs threaten violence to extract payments and secure jobs for their members. “It feels unsafe,” contractor Paul Malloy lamented, reflecting the pervasive fear gripping the industry. Recent reports reveal that at least six construction sites in Cape Town have been targeted, with government projects halted due to intimidation.

The financial toll is staggering. One site alone is projected to incur security costs of €82,000 monthly, severely impacting project budgets. Over the past six years, cases of extortion have more than doubled, prompting South African police to establish a dedicated task force to combat these organized crime syndicates. Yet, the challenge remains formidable. Community members often hesitate to speak out, fearing retaliation from gangs that provide them with resources, creating a vicious cycle of dependency and intimidation.

Extortion has now infiltrated multiple sectors, from construction to the taxi industry and even the water supply system, where so-called “water mafias” exploit service failures to profit off desperate communities. As authorities struggle to combat this entrenched menace, the economic implications are dire, with unfinished projects and unmet community needs lingering as a painful reminder of the crisis.

With the specter of violence looming and communities trapped in a cycle of fear, South Africa faces a critical moment. The time to act is now—before extortion becomes an irreversible part of the nation’s economic landscape.

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