Deputy Finance Minister Ashor Sarupen has revealed that since 2019, construction site disruptions by criminal syndicates have disrupted over 180 projects worth R63 billion, using tactics such as extortion, intimidation, violence and sabotage.
“Their demands for up to 30% of contract value undermine the integrity of our procurement systems and delay critical infrastructure delivery,” he said on Tuesday.
The deputy minister was addressing the National Construction Summit on site disruption, in Durban.
He said while the construction industry faces numerous challenges, none is more urgent than the persistent site disruptions by criminal syndicates, commonly known as the construction mafia, and community protests.
The summit brought together key stakeholders, including government officials, industry leaders, law enforcement agencies, and representatives from the construction sector to engage in meaningful dialogue and share best practices for preventing crime on construction sites.
South Africa’s construction industry is a vital cog in the economy as it contributes around 3% to gross domestic product (GDP), employs over 1.3 million South Africans, with 176 000 jobs added just in the third quarter of 2024.
This sector is also a lifeline for low-skilled workers who often struggle to find job opportunities elsewhere.
Sarupen pointed out that construction projects have an unmatched multiplier effect, adding that for every R1 million invested in construction, more than three jobs are created. This is the highest multiplier across all sectors in the country’s economy.
“It is no surprise that the government has identified infrastructure development as a cornerstone of our economic recovery. The 2024 Medium-Term Budget Policy Statement (MTBPS) reaffirmed our commitment to shifting government spending from consumption to investment,” the Deputy Minister said.
Over the next three years, the South African government plans to invest over R900 billion in the construction sector, Sarupen stated.
READ MORE: Masemola bolsters police force to fight gangs & extortionists.
