In Cape Town, the persistent and intolerable issue of extortion has significantly impacted the economy, particularly in the bar and restaurant sectors. This insidious practice, often referred to as “protection rackets,” is characterized by organized crime groups that intimidate business owners into paying for “protection” against non-specific dangers. This systemic threat has created a shadow economy that not only undermines legitimate businesses but also exacerbates issues of xenophobia and violence within the community.
The realities of these extortion practices were brutally highlighted in the experience of German bar owner Randolf Jorberg. After speaking out against the extortion practices targeting his bar, Beerhouse, Jorberg faced severe consequences. His decision to refuse payment led to tragedy when one of his employees was murdered. This harrowing encounter demonstrates the extreme measures that extortion groups will resort to, cultivating an atmosphere of fear that inhibits open discussion about such crimes.
Growth in Extortion During the Pandemic
The COVID-19 pandemic created a fertile ground for extortion to proliferate. When nightclubs and bars were forced to close, restaurants and smaller businesses became easy targets for organized crime. In December 2020, Jorberg found himself face-to-face with a notorious figure in the extortion scene, Nafiz Modack, who allegedly intimidated him during a visit to his establishment. Jorberg’s decision to speak out again was made while abroad, reflecting the deep fears many bar owners have about retaliatory actions from these criminals.
The situation escalated further when several high-profile individuals linked to the underworld were either arrested or killed. Modack was charged with multiple crimes, including murder, but the structure of these crime networks remains resilient. Investigative journalist Aron Hyman notes that these groups operate like businesses; even if a leader is taken down, the criminal structure persists. This indicates that the solution to extortion cannot simply rely on eliminating key figures but must address the entire ecosystem that allows these activities to thrive.
Impact on Various Sectors
The extortion industry in Cape Town has infiltrated several critical sectors, namely nightlife, construction, transportation, and the township economy. Vulnerable entrepreneurs, particularly those from Somalia, Ethiopia, and Eritrea, are often the main targets, not only facing criminal exploitation but also xenophobic sentiments within the broader South African society.
In construction, the stakes are particularly high. Contractor Mpho Moloi reveals how she relies on a heavy security presence due to the risks associated with hiring local workers in certain areas. This amplification of costs and risks inevitably leads to higher overall expenditures within the industry, as businesses are compelled to pay for security and extortion fees, driving up prices for consumers.
Government Response and Inadequate Policing
In June 2024, the Western Cape Premier Alan Winde labeled the extortion situation as “intolerable,” stating that significant infrastructure projects worth millions were halted due to ongoing protection racketeering. Despite the establishment of specialized anti-extortion police units in the region and an increase in the reporting of extortion cases, actual convictions remain alarmingly low. Between April 2019 and March 2024, 6,056 extortion cases were reported but only 178 resulted in convictions.
The lack of cooperation from victims, primarily due to fear of retaliation, poses a significant hurdle for law enforcement. While authorities aspire to build stronger strategies, the recent internal turmoil within the South African Police Service underscores the difficulties they face—allegations against senior officials of connections to criminal networks further erode trust in law enforcement.
A Broader Perspective on Organized Crime
The extortion problem in Cape Town exists within a larger framework of organized crime affecting regions across Africa. Recent reports like the ENACT Africa Organized Crime Index highlight growing issues such as human trafficking and financial crimes exacerbated by porous borders that facilitate criminal activities. Consequently, there is a global urgency to tackle not only local forms of extortion but also the broader networks that contribute to these criminal behaviors.
International efforts have shown some promise, highlighted by Interpol’s global operations that have led to the arrests of numerous members from West African crime syndicates and the seizure of significant funds. Other community-led initiatives, such as Italy’s Addiopizzo, offer potential blueprints for citizens looking to combat extortion through collective action.
Hope for Change
As the Cape Town economy battles the crippling impacts of extortion, there is an underlying hope that more businesses will find the courage to stand up against these practices. Individuals like Jorberg, who experienced the detrimental effects of extortion firsthand and ultimately closed his bar due to financial strain, serve as poignant reminders of the urgent need for systemic change. To turn the tide against extortion, both businesses and governmental agencies will need to collaborate in innovative and assertive ways.
In conclusion, addressing the extortion crisis in Cape Town is paramount not only for restoring economic stability but also for fostering a safer environment for its residents. As the community grapples with these challenges, the potential for resilience and proactive measures offers a glimmer of hope in overcoming the pervasive threat of organized crime.
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