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Western Cape MEC for Agriculture, Economic Opportunities and Tourism, Ivan Meyer, says extortion syndicates have had a "severe" impact on the province's economy. (Malherbe Nienaber/Netwerk24)
- The Western Cape government has highlighted the economic impact of ongoing extortion syndicates in the province.
- This was revealed during Agriculture, Economic Opportunities, and Tourism MEC Ivan Meyer's provincial legislature reply.
- Organised crime has severely impacted the Western Cape's economy, with construction mafia disruptions costing more than R400 million last year.
The Western Cape government says the economic impact of extortion syndicates has been "severe".
This was revealed in a provincial legislature reply by Agriculture, Economic Opportunities and Tourism MEC Ivan Meyer who was responding to a question from ANC MPL Ayanda Bans.
Bans asked Meyer about the number of businesses that have closed between 2019 and 2025 because of extortion, the construction mafia and other organised crime in the province.
READ | From Cape Town to Cofimvaba: The rise and fall of extortion kingpin Yanga 'Bara' Nyalara
She also asked about the impact of the estimated cost of extortion, the construction mafia, and other related forms of organised crime to the Western Cape economy and the livelihoods of people in the province.
In response, Meyer said accurately quantifying the number of businesses in the Western Cape that have closed due to extortion, the construction mafia, or other forms of organised crime between 2019 and 2025 remained a challenge.
He added:
Many business owners are too intimidated to report such crimes, fearing retaliation from criminal syndicates. Due to the nature of the crime, public records on the number of businesses which have closed down due to extortion are not available.
"This underreporting makes it difficult to assess the full extent of the problem."
Meyer said the police recorded 1 476 extortion cases in the province between April 2019 and March 2024, leading to 683 arrests but only 36 convictions.
"The economic impacts of organised crime in the Western Cape are severe. The construction mafia alone has been linked to project disruptions exceeding R400 million in 2024, stalling infrastructure development and job creation.
"Hotspots for extortion include the Cape Town CBD, where businesses in the hospitality sector are frequent targets, and townships such as Philippi and Nyanga, where gangs extract money from local enterprises."
READ | Construction mafia, extortion gangs threaten SA's economic recovery, warns police committee
He added the widespread nature of these criminal activities eroded investor confidence, hindered economic growth, and forced many small business owners into financial ruin or relocation.
"Without comprehensive interventions to improve reporting mechanisms and protection for victims, the true scale of this issue will remain obscured, allowing organised crime to continue undermining livelihoods and the provincial economy," Meyer said.
