In February, the Africa Leadership Initiative South Africa (ALI-SA) and the Southern Africa Labour & Development Research Unit (SALDRU) convened their second joint policy dialogue, focusing on “The Shadow Economy and Extortion in South Africa.” This critical discussion is part of the lead-up to SALDRU’s SA at 30 Years of Democracy conference, scheduled for 2-4 April 2025.
Crime and extortion continue to pose significant challenges in South Africa, threatening public safety, undermining the rule of law, and hindering economic growth. The dialogue brought together representatives from various organisations, including the Global Initiative Against Transnational Organized Crime, government agencies combating extortion, victims of extortion-based crimes, and activists working against organized crime.
Key Discussion Points:
• Empowering Communities and Businesses: The discussion centred on strategies to empower local communities and businesses to resist extortion networks. Participants highlighted the importance of collective action and community resilience in combating organized crime. By fostering a sense of unity and cooperation, communities can effectively challenge extortionists and create safer environments for businesses to thrive.
• Private Sector Collaboration: There was a strong emphasis on the role of the private sector in countering organized crime. Collaboration between businesses and government agencies was seen as crucial in dismantling extortion networks. This partnership can facilitate the sharing of resources, intelligence, and best practices, ultimately strengthening the national response to extortion.
• Technology and International Best Practices: Leveraging technology to enhance security and transparency was identified as a key strategy. Participants also drew on international best practices, such as grassroots movements that encourage communities to refuse extortion demands, similar to the “No Pesos” movement in Latin America. This movement has shown that collective resistance can significantly weaken the power of extortionists by denying them the financial resources they rely on.
• Addressing Extortion in Key Sectors: Extortion has become prevalent in sectors like construction, transportation, and the night-time economy. Participants noted that provinces such as KwaZulu-Natal, Western Cape, and Eastern Cape are particularly affected, with extortion fuelling violence and undermining economic development. The impact is felt across both formal and informal economies, disrupting critical development projects and interfering with basic service delivery.
Impact of Extortion on Communities:
Extortion networks have a profound impact on communities, fostering an environment of fear and mistrust. This not only erodes trust in government institutions but also leads to a parallel system of criminal governance. In areas where extortion is rampant, victims often feel compelled to leave, resulting in the abandonment of investments and a lack of community cohesion. This phenomenon is particularly evident in rural areas, where under-resourced police stations struggle to effectively prosecute extortion cases.
Future Actions:
The dialogue concluded with a proposal to develop a community-driven campaign against corruption, inspired by the “No Pesos” movement. This initiative aims to empower communities to collectively resist extortion demands, potentially weakening the grip of organized crime. ALI-SA is set to lead this effort, supported by other organisations and stakeholders. The success of such a campaign would depend on strong community engagement, technological innovation, and collaboration with both government and private sector entities.
Further discussions on overcoming corruption will be explored during the SA@30 conference, where a special session on this topic will be held. We invite you to register for the conference at https://saldru.uct.ac.za/sa30 to continue this important conversation. The conference will provide a platform for stakeholders to share insights and strategies for addressing corruption and extortion, ultimately contributing to a safer and more prosperous South Africa.
Building on Momentum:
The momentum from this dialogue is expected to carry forward into the SA@30 conference, where a comprehensive approach to tackling corruption will be discussed. The conference will bring together experts and stakeholders to explore ways to strengthen institutions and enhance transparency, building on the progress made since the Zondo Commission. Despite recent strides, South Africa remains perceived as a country with high corruption levels, underscoring the need for sustained efforts to combat these challenges.
By fostering a culture of zero tolerance for corruption and extortion, South Africa can move towards a more equitable and secure future. The collaboration between ALI-SA, SALDRU, and other organisations is crucial in this endeavour, as it brings together diverse perspectives and expertise to address these complex issues. Through collective action and a commitment to transparency and accountability, South Africa can overcome the shadow economy and extortion, paving the way for sustainable economic growth and social stability.
