Informal Businesses in Cape Town Forced to Close by Extortionists

• Informal businesses such as hair salons and vegetable stalls in Cape Town’s townships are being forced to close due to unaffordable protection fees.
• The South African Police Service has not provided details regarding its efforts to combat and investigate extortion.
• Since April 2024, there have been 115 arrests related to extortion in the Western Cape, though it remains unclear how many have led to convictions.

Business owners in Khayelitsha, Philippi, and Nyanga express that they have no option but to shut down as they cannot manage the protection fees imposed by extortionists.

Those running hair salons, vegetable stands, braaied meat stalls, and dealers of furniture and electrical appliances are being coerced into paying between R500 and R1,000 monthly. For many, their monthly earnings range from R1,500 to R2,000.

The South African Police Service (SAPS) in the Western Cape has declined to specify how it is addressing this issue.

A former roadside braaied meat vendor in Nyanga mentioned to GroundUp that he ceased operations three months ago. “I was unable to make a profit and pay my helpers,” he explained.

He detailed that after paying one group of extortionists, another group would arrive the following week with their own demands. “It feels like they are connected and communicate with each other about when to collect their share,” he remarked.

He has refrained from reporting to SAPS due to threats from the gangs, including death threats.

“I opted to shut down instead of continuing to sell,” he remarked.

Those who refuse to pay the extortion fees often face violence or vandalism of their businesses.

Another business owner from Philippi stated she paid R500 monthly for nearly a year before relocating.

“With the little income I earn, I must provide for my family and compensate my helpers. Yet, I cannot, as the funds go to the syndicate,” she shared.

After closing her business, she was approached by the extortionists who offered to assist her in purchasing stock to stay operational, but she chose to move. That same group continues to harass other businesses in the area. “It’s a sad reality when sellers allocate more than 50% of their earnings to the gangs,” she added.

A Philippi resident who previously rented out rooms explained that his tenants live in fear because failure to pay the protection fee results in threats of violence. “Either you pay, or you, your family, or clients face harm,” he indicated.

He noted that even children as young as 15 are joining extortion gangs.

Where is SAPS?

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

GroundUp followed up with additional questions to SAPS regarding these arrests and any potential convictions. Traut replied that “the specific details of our operational efforts are not disclosed to the media, as such information could alert those we are targeting and compromise our strategies.”

We also inquired whether there are measures in place to facilitate and safely report extortion cases. Traut confirmed that the SAPS extortion hotline is available at 0800 314 444.

“Extortion remains a top priority in the province,” Traut stated.

On 28 February, teachers at Zanemfundo Primary School received threats from extortionists demanding payment by 14 March. SAPS has been patrolling the area and escorting teachers when necessary, yet no arrests have occurred. According to a source at the school, only the principal has been interviewed by police, and the teachers have not.

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

© 2025 GroundUp. This article was first published here.

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