Dark Economy: The Growing Shadow Over South African Business

03 Feb 2025

Organised crime syndicates have tightened their grip on South African businesses, evolving from opportunistic gangs into sophisticated criminal enterprises that systematically target key industries. From construction sites (see previous article here) to logistics operations, the past year saw criminal networks penetrate deeper into legitimate business operations, and intelligence forecasts suggest this infiltration will intensify in 2025.

"What we're seeing is a fundamental shift in how organised crime operates," says Glen Vermeulen, Excellerate Services Regional Director. "These syndicates are moving beyond opportunistic crime, they're studying business operations, identifying vulnerabilities, and executing coordinated attacks. It's no longer enough to just react to incidents, businesses need to understand these shifting threats to stay ahead of them." 

The past year has taught us that organised crime isn't just about random acts of violence anymore. These syndicates are sophisticated, well-funded, and increasingly bold in their operations. Construction mafias, in particular, have evolved from simple intimidation tactics to running complex extortion networks that can cripple entire projects.

What's Really Happening on the Ground?

Take the logistics sector, for example. The police and security industries don't just deal with occasional hijackings anymore, we're seeing coordinated attacks that suggest inside information and careful planning. When a guard at a warehouse spots suspicious activity, it could be the first sign of a much larger operation.

The impact is spreading across industries:

•Construction sites face armed gangs demanding "protection fees"

•Logistics companies battle sophisticated hijacking syndicates

•Retailers struggle against counterfeit networks that can replicate entire supply chains

Consider Intercape's battle against organised extortion for example. What started as isolated incidents escalated into a systematic campaign of violence, culminating in the tragic loss of life. It took court intervention to force a response, but by then, the damage was done.

But there's hope in fighting back. Through a combination of intelligence gathering, community engagement, and coordinated security responses, businesses can protect themselves. Here's what works:

•Comprehensive security solutions that combine human expertise with technology

•Strong partnerships with law enforcement and community stakeholders

•Employee training that builds a culture of security awareness

•Real-time intelligence gathering and threat analysis

"Security isn't about impressive equipment or empty promises," Vermeulen adds. "It's about understanding the real threats your business faces and having people who know exactly what to do when those threats materialise. That's what keeps us pushing forward, making sure our clients stay one step ahead of these syndicates."

The organised crime threat is real and growing, but so are the capabilities to fight it. Whether you're already battling these challenges or looking to protect your business before it's targeted, the time to act is now.

Sources: Infrastructurenews.co.za, reuters.com, sanews.gov.za, mybroadband.co.za, greenbuildingafrica.co.za