Since approximately 2015, a phenomenon known as the "Construction Mafia" or "Business Forums" has devastated South Africa's construction sector. Criminal syndicates arrive at construction sites — government buildings, roads, housing projects, shopping centres — and demand 30% of the contract value as a "protection fee." If refused, they occupy the site, assault workers, destroy equipment, and halt construction until their demands are met.
The South African Property Owners Association assessed the economic damage at R68 billion and counting. Masterbuilders SA confirmed 183 reported incidents in 2023 alone, though the actual number is believed to be far higher since many contractors capitulate without reporting. Multiple major infrastructure projects have been abandoned entirely. Foreign construction companies are leaving South Africa, taking their expertise and investment with them.
The Construction Mafia operates at the intersection of organised crime and political patronage. Some "Business Forum" leaders have links to local politicians and municipal officials who tip them off about upcoming tenders. The police response has been inadequate — in some cases because officers themselves are linked to the syndicates. The result is that South Africa cannot build the infrastructure it desperately needs because the construction sector has been captured by extortion networks.