EDITORIAL THOUGHT LEADERSHIP
While Donald Trump’ s tariffs have left the global economy on edge, there is at least one industry in South Africa that is – quite literally – booming: EXTORTION. In fact, extortion has become so lucrative that several criminal organisations exist for this sole purpose, relying on threats( actual or implied), intimidation, or force( including explosive devices) for their entire income. Across South Africa, it impacts diverse sectors, including construction, small foreign-owned businesses, the taxi industry, and even households.
The growing prevalence of extortion can appear demoralising. Incident numbers are high, arrests are few, and many victims are too afraid to formalise their complaints. However, as our research at Online Intelligence shows, knowledge and awareness remain among the most powerful tools of resistance. Understanding the 2025 extortion business model is a crucial step towards protecting your organisation as well as your people.
In the security sector, extortion often masquerades as legitimate business.
The statistics
Let’ s take a look at the numbers. Our latest report on extortion, compiled in June 2025 by expert criminologists and data analysts from Online Intelligence and our PSI team( specialising in petroleum-related crime), reveals a troubling landscape.
Between April 2019 and March 2024, a total of 6 056 cases related to extortion were reported in South Africa. Of these, only 2 389( 20 %) resulted in arrests and only 178( 2.9 %) resulted in convictions. The most affected provinces in 2024 were Gauteng( 2 284 cases), Western Cape( 1 476), KwaZulu- Natal( 816), and Eastern Cape( 438).
However, while these numbers seem( and are) high, our research indicates that they are actually much, much lower than the actual incidences of the crime.
In reality, most victims don’ t report extortion. Fears of retaliation, financial loss, or business disruption are common reasons for forgoing a formal report. Those who have reported incidents in the past are unlikely to report again due to the lack of positive resolution, and many withdraw reports entirely after facing threats or intimidation from these criminal groups. Still more victims simply comply with the demands. However, once compliance occurs, victims may be further deterred from reporting as they fear facing criminal charges themselves.
Clearly, extortion is a thriving enterprise in South Africa. The real question is no longer whether it exists, but how it operates. What is the business model? How do extortionists identify and exploit their targets? Our findings have answered these questions too.
Modus operandi
Extortion has historical roots in South Africa, dating back to the 1940s and 1950s with groups like the‘ Marashea’ and‘ Msomi’ gangs rising to prominence in response to Apartheid SA’ s Group Areas Act, which displaced nonwhite South Africans by evicting them from their homes and forcibly resettling them in rural and underdeveloped areas far from urban and economic hubs. However, extortion methods have grown increasingly violent and sophisticated. The standard operating procedure for extortionists in South Africa is both calculated and aggressive. Rather than immediate threats, perpetrators observe procurement processes and look for moments of vulnerability – delays, informal negotiations, or gaps in oversight. Once these vulnerabilities are identified, demands often follow— including calls for a share in a development, monthly“ protection” payments, or enforced employment quotas.
The most common modus operandi of extortionists( across industries) includes threatening workers and their families, demands for community employment and a 30 % share from Small, Medium, and Micro Enterprises( SMME) in projects, forceful demands for tenders and protection fees, and intimidation to halt work. In addition, extortionists may engage in criminal activities such as theft, armed robbery, destruction of water infrastructure, and( in extreme cases) murder, to assert and maintain control.
Industry specific extortion
Beyond this standard process, industries face their own unique challenges. The most visibly affected sector is construction, where extortion has developed into a parallel economy. Groups dubbed the“ construction mafia” emerged in KwaZulu-Natal in
SA PROFILE www. saprofilemagazine. co. za
43