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INSIGHT: South Africa’s big mafia problem is getting worse

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In the vibrant heart of Cape Town, a menacing shadow economy looms over various enterprises, including spaza shops, bustling nightclubs, construction projects, and transportation companies. Within this clandestine realm, individuals and businesses alike find themselves facing exorbitant demands for money, services, and goods that exceed legitimate channels. According to a study by Jenni Irish-Qhobosheane for the Global Initiative Against Transnational Organized Crime (GI-TOC)the rise of extortion in Cape Town can be attributed to both local and national factors, with a significant influence stemming from the city's long-standing history of gangsterism. The COVID-19 lockdown in 2020 significantly curtailed extortion revenue for criminal organizations, as business closures and curfews disrupted their operations. However, as restrictions were gradually lifted, extortion activities exhibited a marked increase in both aggressiveness and frequency due to the following key factors: The co
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NEWS: Is water poised to become the next major infrastructure crisis unfolding before our eyes?

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Our preoccupation with Eskom and logistics has overshadowed the importance of water, which could pose a more significant threat than electricity and Transnet. Water is essential for sustaining life.The absence of water in the country's economic center will have dire consequences. Without water, industries will be unable to operate, leading to a standstill in the production of goods and services.


Johannesburg's water and sanitation infrastructure is in dire straits due to insufficient funding, resulting in increased infrastructure failure, financial losses, and dissatisfied consumers. The city's water company, Johannesburg Water, has an infrastructure portfolio that has lost 59% of its value, with a backlog of R24 billion in assets that have reached the end of their useful lifespan. This is because authorities have failed to meet the mandated annual infrastructure renewal rate of 2%. 

The company should ideally set aside around R2 billion each year for pipe replacements and sewer pipe upgrades to hit the 1.5% asset renewal target, but budget constraints have kept it from doing so. The current expenditure pattern indicates that an average renewal rate of 1% has been achieved. Water authorities warn that this backlog holds back economic growth and development. Econometrix chief economist Azar Jammine blames mismanagement and diversion of resources by the City of Johannesburg. The company has only set aside a meager R7.3 billion for infrastructure renewal in the next five years, far short of the R64 billion needed over the next decade. The region is already experiencing devastating water shortages, and the situation will likely worsen without timely intervention.

Are we witnessing a looming infrastructure crisis centered around water?


The full hardhatNEWS article was published on 2Oceansvibe

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