Editor’s Note: Extortion rackets a consequence of our failed economy

In June last year, Spaza shops were forced to close in Bishop Lavis due to many incidents of extortion. Picture: Ayanda Ndamane /Independent Newspapers

In June last year, Spaza shops were forced to close in Bishop Lavis due to many incidents of extortion. Picture: Ayanda Ndamane /Independent Newspapers

Published Aug 27, 2024

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The following refers, “Somali extortion: Shop owners threatened with death if they don’t pay up”:

South Africa’s townships are under siege by a growing phenomenon of extortion gangs, a scourge that is exacerbating the deep inequalities and poverty in these areas.

For residents and small business owners in these communities, the reality of extortion is a daily nightmare that erodes their already fragile livelihoods.

Extortion gangs, also referred to as "protection fee" syndicates, have proliferated across the country, particularly in the Western and Eastern Cape provinces.

These gangs prey on the most vulnerable, demanding payments from small businesses under the threat of violence or even death.

In Cape Town alone, the rise of extortion rackets has led to significant disruptions in local economies, forcing many businesses to close down .

This crisis has not emerged in a vacuum. South Africa's political elites, whether intentionally or not, have indirectly laid the groundwork for this extortion economy.

Over the years, political rhetoric surrounding "expropriation without compensation" has resonated far beyond the halls of power.

While this policy was intended to address land inequality, its ambiguous nature has been misinterpreted by criminal elements as a green light for taking what they want without fear of retribution.

The consequences are devastating, particularly in townships where the gap between rich and poor is most pronounced.

The impact on these communities is severe. Small businesses, which are the backbone of township economies, are being crippled.

The cost of doing business has skyrocketed, not because of inflation or market forces, but because of the need to pay for protection from the very gangs that threaten them.

This economic strain perpetuates poverty, as businesses close or relocate, leaving residents without jobs or access to essential services.

Addressing this issue requires more than just a crackdown on criminal elements. It demands a re-evaluation of the political and economic policies that have allowed such practices to flourish.

It also calls for a concerted effort to restore trust in law enforcement and to protect the small businesses that are vital to the survival of township economies.

In the end, the fight against extortion is not just about stopping criminals; it is about reclaiming the dignity and hope of South Africa's poorest citizens.

Without decisive action, the silent war waged by extortion gangs will continue to hold the country’s townships hostage.

* Quinton Mtyala, is the Western Cape Regional News Editor.

Cape Argus

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