Extortionists close down informal businesses in Cape Town

Informal business owners in Khayelitsha, Philippi and Nyanga say they have no choice but to close shop because they are unable to afford the protection fees demanded by extortionists.

Owners of hair salons, vegetable stalls, braaied meat stalls, and furniture and electrical appliance dealers are being targeted, and forced to pay between R500 and R1,000 a month. For most of them, monthly profit is between R1,500 and R2,000.

South African Police Service (SAPS) in the Western Cape declined to provide details of how it is responding to the issue.

One person who used to sell braaied meat at the roadside in Nyanga told GroundUp that he shut down his business three months ago. “I could no longer generate profit and pay the people helping me,” he said.

He said he would pay one group of extortionists, and then the next week a different group would come with their own demands. “It is like they are connected and tell the other gang they are done collecting their share and now it is their turn,” he said.

He said he has not opened a case with SAPS because the gangs have warned him against doing so. He has received death threats.

“I decided to shut down and not sell,” he said.

Business owners who do not pay the protection money are often assaulted or have their businesses vandalised.

Another informal business owner from Philippi said she had paid R500 monthly for almost a year. She has since moved to a different location.

“With the little money I am generating from the business, I have to feed my family and pay the people assisting me. But I can’t because the money goes to the syndicate,” she said.

She said that after she closed down, she was approached by the extortionists who offered to help her buy stock and goods so she could stay open, but she decided to relocate. The same group continues to torment other businesses in the area. “It is a sad reality that sellers spend more than 50% of their profits on the gangs,” she said.

A Philippi resident who used to rent out rooms said his customers live in fear because when he does not pay the protection fee, they are threatened with violence. “It is either you pay, or you, your family or clients are hurt,” he said.

He said children as young as 15 years old are joining extortion gangs.

WHERE IS SAPS?

SAPS Western Cape spokesperson Colonel Andre Traut told GroundUp last week that the Provincial Extortion Task Team had made 115 arrests since April 2024.

GroundUp sent further questions to SAPS about these arrests and whether any have led to convictions. Traut responded that “the specific details of our operational efforts are not shared with the media, as doing so could alert those we are targeting and undermine our strategies.”

We also asked whether anything is being done to make it easier and safer for people to report extortion cases. In the Eastern Cape, for example, SAPS has set up a hotline dedicated to receiving extortion tip-offs. Traut did not respond to this question, other than to say “extortion remains a priority in the province.”

Teachers at Zanemfundo Primary School were threatened by extortionists on 28 February. They were told to pay up by 14 March. SAPS has been patrolling the area and escorting teachers when necessary, but no arrests have been made. According to a source at the school, only the principal has been interviewed by police and none of the teachers.

Traut told GroundUp on Monday that “Philippi East SAPS is aware of the matter and has implemented measures to protect both the school and its learners. While no formal complaint has been lodged, SAPS has opened an enquiry docket as part of our firm stance against extortion.”