Construction Mafias Threaten South Africa’s Infrastructure Growth

Construction mafias in South Africa are hindering infrastructure projects and deterring investors. Public Works Minister Dean Macpherson aims to tackle these criminal gangs to facilitate President Ramaphosa's infrastructure growth plan. The mafias use violence and intimidation, demanding stakes in projects, and have connections with corrupt politicians.

Powerful and politically-connected 'construction mafias' are scaring away investors and stalling infrastructure projects crucial for South Africa's economic growth, according to the country's new public works and infrastructure minister.

Dean Macpherson, who took office last month, is focused on executing President Cyril Ramaphosa's plan to revitalize the country's infrastructure. Ramaphosa emphasized in his policy speech that massive investment in infrastructure will drive inclusive economic growth, but stressed the need to combat rampant criminal gangs disrupting construction sites.

'It's a big threat to us,' Macpherson said in an interview, highlighting the significant delays and cost overruns caused by these mafias. The gangs, which emerged a decade ago in KwaZulu-Natal, have expanded nationwide and demand money or development stakes through violent tactics. Macpherson is set to meet with various state actors to develop a national strategy to combat these groups, with Ramaphosa marking it as a priority. New funding models and reforms to public-private partnership regulations are in the works to attract private sector investment despite the risks posed by these gangs.

(With inputs from agencies.)