Posted  23 April 2019

Criminal gangs paralyse SA’s vital construction sector

Deterring investment & undermining Ramaphosa’s economic growth plans

Criminal mafia gangs operating with impunity across the country are threatening to bring the country’s vital construction industry to its knees. The gangs have already disrupted and/or destroyed 78 construction projects worth a minimum of R25.5 billion. Armed with AK-47 rifles, they terrorise construction personnel on site and at their offices, demanding part or all of the business of projects that firms are involved in, as well as cash payments to allow them to operate.

Police are not assisting, turning a blind eye, and despite desperate pleas to government by the industry, government has to date not responded. This is seriously harming investor confidence, is contributing to the brain drain with scarce skills leaving the country and is putting in jeopardy the R400-billion infrastructure programme President Cyril Ramaphosa announced in his economic stimulus package last year. At least five major construction firms are now in business rescue, partially as a result of this criminal terrorism. Last year the construction industry contributed 3.77% or R107 665 136 484 of GDP.

Stef Terblanche

23 April 2019