How organised crime is blighting South Africa’s economy

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How organised crime is blighting South Africa’s economy
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The boom in organised crime has many causes, but the chief one is that the state has been enfeebled by a corrupt ruling party, the African National Congress

Save time by listening to our audio articles as you multitaskThe consequences of non-compliance were not spelt out. But they could be assumed. Since 2015 forums have spread from the province of KwaZulu-Natal to the rest of the country, invading construction sites and demanding a share of any deal. In 2019 forums affected at least 183 projects, worth more than 63bn rand .

Yet many criminal enterprises target more prosaic parts of the economy. The sharp rise in the copper price in 2020 led to a surge in cable theft. South Africa’s telecommunications firms have formed a special unit partly to combat the crime. Eskom, the state power utility, says cable worth about 2bn rand is stolen every year. Transnet, the public freight-rail operator, said in October 2021 that more than 1,000km of cable had been stolen so far that year.

Major figures in the South African underworld operate in myriad markets. Consider, for instance, Petros Sydney Mabuza, a kingpin assassinated last year. As well as running a rhino-poaching syndicate, he was reportedly involved in the taxi industry, extortion and robbery of vans carrying cash. At his funeral a helicopter brought his casket to the venue, with the box draped in leopard skin.

“State capture” under Mr Zuma has been well documented. But criminality runs deeper than government graft. Many business forums, for example, are said to have links to the’s “radical economic transformation” faction, which is aligned to Mr Zuma. These groups say they are not gangsters but vehicles for black empowerment; when they invade sites they demand 30% of the construction contract’s value, citing a law that reserves that fraction for “local” firms in public procurement.

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