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 construction industry has become a target of extortion, which has expanded beyond foreign-owned businesses and taxis. This shift is influenced by trends observed in regions like KwaZulu-Natal and reflects a broader pattern of extortion practices.
- Increasingly sophisticated gangs perceive extortion as a key revenue stream due to its low-risk and high-reward potential.
- In a state characterized by porous security measures and low levels of trust among communities, gangs have taken advantage of the situation, resulting in a pervasive culture of extortion as a means of securing protection.
In January 2023, Cape Town mayor Geordin Hill-Lewis expressed concerns about the potential consequences of the ongoing issue of extortion in the city and South Africa at large. During a meeting with the Standing Committee on Human Settlements in the Western Cape Provincial Parliament, he warned that if the problem is not adequately addressed, Cape Town and South Africa risk becoming "mafia states" where all economic activities, both in the private and public sectors, would require payment of "protection money" to criminal elements.
The full hardhatINSIGHT article was published by Business tech
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