How extortion threatens economic stability in the Western Cape

IOL News

4 days ago

Western Cape Premier Alan Winde told the gathering that R400 million worth of public infrastructure projects stalled in the province by the end of 2024 due to criminal interference.
Image: Armand Hough/Independent Newspapers
Extortion has emerged as a critical threat to development, public services, and the safety of residents in the Western Cape, according to Premier Alan Winde and Police Oversight and Community Safety MEC Anroux Marais.
Their remarks came during a high-level Anti-Extortion Summit held in Cape Town on Tuesday, where officials gathered to address the escalating issue.
Hosted by the Western Cape Government, the summit brought together law enforcement, business leaders, civil society, and multiple government departments in a bid to confront what officials described as a 'systemic and organised' campaign of criminality.
It comes amid growing concern that extortion syndicates are paralysing infrastructure projects, intimidating communities, and undermining job creation.
Winde told the gathering that extortion has effectively 'strangled economic growth', with roughly R400 million worth of public infrastructure projects stalled in the province by the end of 2024 due to criminal interference.
'This is intolerable,' he said. 'We must recommit to working closer together to hit back at these criminals. One way in which we can do this is by giving provinces and municipalities more of a say in policing, adequately resourcing the SAPS in our province, with crime intelligence being significantly bolstered, and by properly capacitating the National Prosecuting Authority (NPA).'
Marais said extortion has evolved into a serious economic and security crisis, threatening livelihoods, delaying service delivery, and destabilising entire sectors.
'Extortion is a direct threat to livelihoods, small businesses, infrastructure development, and public services,' she said. 'It undermines the rule of law, instills fear in communities, and leaves many of our residents despondent.'
The growing trend of gangs demanding 'protection fees' from construction companies, business owners, and even public transport operators has created an environment of fear.
'They are not just stealing money,' Marais added. 'They are stealing opportunities which are critical to economic participation and job creation.'
The summit saw government and civil society stakeholders commit to a stronger, more coordinated response to organised extortion.
A dedicated multi-sectoral structure will be formed to drive anti-extortion strategies across departments and agencies.
Improved data-sharing and the enforcement of last year's Collaboration Agreement between the SAPS, the City of Cape Town, and the provincial government were also highlighted as immediate priorities.
Premier Winde said public-private cooperation would be crucial to dismantling extortion networks.
He also reiterated the Western Cape's longstanding call for policing powers to be devolved so that local government can respond more effectively to organised crime.