President Cyril Ramaphosa has delivered a forceful commitment to dismantle the criminal networks known as construction mafias that have been extorting contractors and halting building sites across South Africa, insisting that law enforcement will pursue the perpetrators without compromise. Addressing the National Construction Summit in Boksburg, the president made clear that the government refuses to engage with these syndicates or tolerate disruptions from cable theft and vandalism, underscoring a determination to protect vital public works.
These organised groups, which demand stakes in contracts or payment for “protection”, have interfered with more than 180 projects valued at R63 billion since 2019, causing extensive delays and inflating costs. Ramaphosa’s remarks come as the state reaffirms its intention to allocate R1 trillion towards infrastructure over the medium term, a policy shift highlighted in the latest medium-term budget that prioritises capital investment over consumption spending. Finance minister Enoch Godongwana’s statement noted that capital allocations represent the fastest-growing budget line, expected to increase by 7.5 per cent annually, as reported by Business Day.
The president pointed to encouraging signs of recovery in the sector, with official figures showing the construction industry created 130,000 jobs in the third quarter of 2025, more than any other field, helping lower the unemployment rate from 33.2 per cent to 31.9 per cent. This surge reflects growing momentum that the government is keen to sustain, viewing infrastructure as essential for competitiveness, sustainability, and reducing inequality. Without reliable roads, power plants, and water systems, economic progress stalls and living standards deteriorate, Ramaphosa emphasised.
To accelerate delivery, the Department of Public Works and Infrastructure has launched the SA Construction Action Plan, introducing measures such as procurement “war rooms” in every province to eliminate bottlenecks, real-time digital monitoring of projects, and stricter vetting to bar underperforming firms from future tenders. The initiative also seeks to ease cash-flow pressures on contractors and enhance governance through stronger audits and professional standards in the public built-environment sector.
With South Africa preparing to host the G20 Leaders’ Summit next week—the first on African soil—Ramaphosa linked the domestic infrastructure drive to broader global priorities, including climate-resilient development and disaster-risk reduction. The gathering is expected to reinforce international partnerships that could unlock additional funding and expertise for the continent’s projects.
This crackdown forms part of a wider law-enforcement offensive against construction extortion, which has seen dozens of arrests and the deployment of specialised police units in recent years. Industry bodies estimate that such criminality previously added up to 30 per cent to project costs in affected provinces, particularly Gauteng and KwaZulu-Natal, according to the South African Federation of Civil Engineering Contractors. By confronting the mafias head-on while streamlining procurement, the government aims to translate its trillion-rand commitment into tangible progress and sustained job creation.