Extortion gangs tighten grip on Cape Town

Business owners in Cape Town’s informal economy are facing growing threats of violence and death from extortion syndicates. The issue has come into sharp focus following a series of violent incidents, including the murder of a 58-year-old woman in Delft, according to Daily Investor.

Extortion is not new in the city. But experts say it has escalated rapidly in recent years, spreading across more sectors and communities.

A growing and organised criminal economy

The Institute for Security Studies noted that extortion has expanded significantly over the past decade. Meanwhile, the Global Initiative against Transnational Organised Crime identified four key extortion economies in Cape Town: nightlife, transport, construction and township enterprises.

In township areas like Khayelitsha and Atlantis, syndicates initially targeted foreign-owned businesses. Over time, they expanded to include locally owned shops, emboldened by early success.

Western Cape Deputy Director of Public Prosecutions, Advocate Mervyn Menigo, described extortion as a “low-risk, high-reward crime”.

“You threaten somebody and get money. Kill one person, and you’ve got the whole community in your pocket,” he said.

Violence and fear drive compliance

Business owners report receiving threatening letters demanding protection fees. Failure to comply often leads to violence.

Newzroom Africa, cited by Daily Investor, reported that many businesses are now at risk of shutting down due to these threats. In some areas, extortion has already led to multiple deaths.

Thokozile Qalanto, Secretary General of the Khayelitsha Business Forum, said the situation is deeply entrenched.

“Khayelitsha is the extortion capital of the Western Cape,” she said, adding that multiple gangs operate in each ward.

She warned that many businesses have already closed, and aspiring entrepreneurs are being discouraged from starting new ventures.

Calls for urgent government action

Qalanto said fear prevents many victims from speaking out, as extortionists often live in the same communities.

Despite arrests by anti-extortion units, she claims the problem persists, with some syndicates continuing operations from prison.

She has called on the City of Cape Town, national government and even the Defence Force to intervene.

“They must fight it properly and invest in safety and security,” she said.

As the crisis deepens, many small business owners are left with an impossible choice: pay up, or risk their lives.