The nation’s new minister of public works and infrastructure claimed on Friday that strong, politically connected “construction mafias” deter investors and stall infrastructure projects essential to boosting South Africa’s economy.
As part of President Cyril Ramaphosa’s aim to transform South Africa into a construction site, Dean Macpherson was appointed to the position last month in the new coalition administration.
In his inaugural policy address to the newly elected parliament, Ramaphosa stated that significant infrastructure investment would propel inclusive economic growth.
Laptops 1000However, for that to occur, Macpherson stated in an interview that the state must address the gangs of criminals that frequently target building sites.
It poses a serious risk to us, he declared. “It physically stops projects that are underway (and) it creates a barrier to entry for the private sector because if there’s going to be stoppages and cost overruns that eats into their margins.”
“Why would you deploy capital that’s going to sit in a project indefinitely, possibly, and that you’re then going to have to start paying more and more towards keeping gangsters off of your site?” he replied.
The Inclusive Society Institute, based in Cape Town, released research in 2023 that stated that “mafias” in South Africa’s construction industry first emerged in the east coast province of KwaZulu-Natal approximately ten years ago and have since spread throughout other provinces.
The gangs usually target construction sites, threatening to use violence or intimidation to obtain what they want in exchange for cash or a part in development projects.
They also have tight relationships with corrupt politicians, according to Macpherson, a former KwaZulu-Natal Democratic Alliance (DA) provincial chairwoman. The DA was the largest opposition party until it joined the government.
According to Macpherson, Ramaphosa has made fighting gangs a top priority and will meet with key state actors to develop a national strategy for doing so next month.
