The South African construction industry has undergone significant changes due to criminal activity, prolonged power outages, and weak economic growth. These factors have led to the decline of some of the country's largest contractors while simultaneously creating opportunities for smaller firms, which now play a much more substantial role in the sector.
According to Statistics South Africa, the industry has faced numerous difficulties over many years, including low economic growth rates, insufficient investment, power supply issues (load shedding), labor shortages, the Covid-19 pandemic, and criminal activity.
One manifestation of this criminal activity has been the emergence of so-called 'construction mafia' groups. The law firm Cliffe Dekker Hofmeyr reported that these organized groups are increasingly targeting construction projects using methods of blackmail, intimidation, and site intrusion. This results in project delays, increased costs, and undermined investor confidence.
The difficult business conditions coincided with the bankruptcy or restructuring of some of South Africa's largest construction companies, such as Group Five and Basil Read, as well as major reorganizations at Murray & Roberts, fundamentally altering the structure of the entire industry.
This decline was exacerbated by a scandal involving collusion. In 2009, the Competition Commission began investigating alleged anti-competitive practices among construction companies involved in building stadiums for the 2010 FIFA World Cup. Allegations included bid rigging, price fixing, and artificial profit inflation across at least six stadiums.
Companies involved in the settlement process included Murray & Roberts, Aveng, WBHO, Group Five, and Stefanutti Stocks. In June 2013, the Competition Tribunal reached a settlement with 15 builders, imposing fines exceeding 1.5 billion rand. Furthermore, the University of Cape Town noted that the City of Cape Town filed civil lawsuits amounting to 428 million rand against companies that colluded on the Greenpoint stadium tender. The University indicated that the stadium's initial budget was 2.9 billion rand, but the final cost reached 4.5 billion rand.
The contribution of construction to South Africa's gross domestic product peaked at 4.2% in 2008, after which it began a steady decline to 2.3% by 2025. In real terms, the industry volume decreased from 156 billion rand in 2016 to 99.1 billion rand last year, according to Stats SA.
The latest Stats SA report on the construction industry for 2024 shows that small and micro-enterprises accounted for 32.2% of total construction revenue in 2024, up from 25% a decade ago. Their contribution to employment has also significantly increased: in 2024, small and micro-enterprises provided 55.3% of all construction jobs, compared to 40.6% in 2014. Only micro-enterprises were responsible for 44.8% of sector employment.
The statistical agency notes that the overall employment level in the construction industry has fluctuated over many years but does not show a clear long-term trend, and large enterprises are becoming less significant in the construction sector.
Parallel to this, the dominance of the industry's largest companies has gradually weakened. In 2014, the top 100 construction firms generated 40% of the industry's total revenue. By 2024, this share had dropped to 26.7%, indicating a less concentrated industry structure with income distributed among a larger number of enterprises.
Nevertheless, large companies remain important players, accounting for 43% of the industry's revenue in 2024, although they occupy only 21.4% of the jobs. Small, medium, and micro-enterprises employ the remaining 78.6% of the workforce in the industry. Gauteng remains the center of construction in South Africa, providing 35.3% of service revenue, 32.8% of wages, and 26.2% of employment. However, Gauteng's share of industry activity has declined since 2020, while the Western Cape and KwaZulu-Natal have expanded their presence.
Signs of recovery are being observed, although the sector still lags significantly behind previous peak figures. In 2024, employment increased by 12.5% to 539,056 people compared to the 2020 baseline, but remained below the 592,125 recorded in 2017. Building construction showed the largest increase in jobs, adding 22,947 jobs between 2020 and 2024. Average annual wages and salaries also rose from 150,541 to 171,316 rand during this period.
According to Stats SA, the results indicate that over the last decade, the industry has become less concentrated, with small firms playing an increasingly important role in generating revenue and creating jobs.
Members of the South African Police Service (SAPS) were deployed in the Gauteng province ahead of a protest against immigrants scheduled for June 30th. The article notes that increasing on-site personnel may be difficult if officers are not adequately compensated.
SAPS has a constitutional obligation to protect South African citizens from harm and ensure their safety, according to Section 205(3) of the Constitution of the Republic of South Africa. This protection extends to everyone residing in the country, including both legal and illegal foreign nationals. South African citizens are forced to share limited resources such as medical services, jobs, and schools.
Furthermore, the police are obligated to provide equal protection to all while simultaneously arresting and deporting individuals present in the country illegally. However, for many years, the police have voiced concerns about insufficient resources, primarily due to budgetary constraints.
General Lieutenant Patekile, who served as the outgoing Provincial Commissioner of the Western Cape, highlighted a 'serious staff shortage, budget cuts, and poaching of trained police officers.' He strongly called for funding for SAPS to ensure a greater street presence. Nevertheless, increasing staff numbers may be impossible if officers are underpaid, as private companies such as banks, insurance firms, and security agencies attract these employees with more favorable conditions.
Violence related to gangs and the lucrative illegal drug market has long been observed in the Western Cape. Therefore, more personnel are needed to supplement the approximately 19,000 SAPS officers currently working in the Western Cape. According to General Lieutenant Patekile, this number has decreased from around 21,000 officers available ten years ago.
These officers are making every effort to ensure the safety of Western Cape residents, but circumstances make this work challenging. During the Standing Committee on Appropriations meeting on May 12, 2026, SAPS management pointed to critical structural, operational, and resource limitations. They specified a 42% staff deficit, with only 45% of officers willing to perform their duties.
Management also reported that about 7,500 police vehicles are out of order, and an additional deficit of 5.8 billion rand is required to modernize Information and Communication Technologies (ICT). SAPS modernization includes the full implementation of the Integrated Case Management System (ICDMS) across all police stations nationwide, which remains a challenge. The implementation of body-worn cameras is also an outstanding issue.
Not only SAPS suffers from resource shortages, particularly human ones; the Independent Police Investigative Directorate (IPID) is also struggling. IPID bears immense responsibility for investigating cases against SAPS members in accordance with its mandate (IPID Act 1 of 2011). However, their workload appears overwhelming given the amount of staff available. Around 400 officers must investigate approximately 19,728 active cases. The inability to effectively investigate these cases against SAPS could mean that victims never receive justice.
SAPS is considering strengthening cooperation with public-private partnerships to improve the effective delivery of services. The presence of various private security companies during the June 30, 2026 protests showed that these companies are better resourced than SAPS.
The allocation of 600 million rand to prevent any incidents during protests against undocumented (undocumented foreign nationals) in South Africa contradicts the cries of resource scarcity within SAPS. In fact, the funds allocated to SAPS for protests against undocumented immigrants across the country on June 30, 2026, could significantly help resolve some of SAPS's current issues, including staff shortages, detective training, and the acquisition of modern technological systems.
It is understood that this money is part of an emergency fund and was not originally budgeted into SAPS's operational budget. However, SAPS management could have declared various situations emergencies long ago. Unfortunately, SAPS management appealed to Parliament with concerns about staff shortages, lack of resources, aging infrastructure, and retaining skilled employees, but without success.
Taxpayers affected by crime are the same people paying for the police operation on June 30, 2026. It would be fair if police management organized another press briefing to provide the nation with a detailed report on expenditure. Furthermore, the protests could have been avoided if the government had shown willingness to address the issues of undocumented foreigners decades ago.
Various organizations, including political parties, have complained for years about porous borders, but no substantial measures have been taken, allowing undocumented citizens easy entry into the country. The Border Management Authority (BMA) has failed to sufficiently tighten checkpoints. The sad reality is that even officers deployed on June 30, 2026, lacked sufficient resources to perform their duties. Police visibility on the ground without necessary equipment does not guarantee crime prevention.
Incidents occur in South Africa where police are pelted with stones by enraged crowds in various communities; unfortunately, SAPS management has not learned from history. Moreover, there is a wave of officer departures from SAPS for a number of reasons, and management struggles to retain them because the retention policy has not solved most critical issues.
According to Choke (2022:271), many officers leave SAPS for the following reasons: low salaries, lack of operational advancement, poor working conditions, job dissatisfaction, low organizational motivation, unfair promotion, and seeking better earnings. These reasons can be mitigated with a strong desire from both SAPS management and the government to solve these problems. Additionally, appointing suitable SAPS leaders is a necessity.
The newspaper The Daily Sun Newspaper published an article on June 22, 2026, about Constable Lindokuhle Ngcobo, who recently obtained a PhD in Policy and Development Studies at the University of KwaZulu-Natal. Although Constable (Doctor) Ngcobo possesses other qualifications, he remains a constable. Perhaps Dr. Ngcobo has no reason to stay in SAPS longer; better opportunities call him. SAPS has many officers like Dr. Ngcobo who are overlooked for promotion while less qualified individuals receive higher positions.
If Dr. Ngcobo receives another opportunity, he may not hesitate to leave SAPS. Moreover, skill shortage allowances range from 1,000 to 1,500 rand per month, before tax. This allowance is insufficient to retain anyone with sought-after skills when others offer more lucrative packages. For example, training one Special Operations Group member costs about 1 million rand, and private security companies demand these skills and pay handsomely for them. Thus, SAPS cannot compete with the market.
The truth is that SAPS will continue to lose qualified and experienced staff, especially seasoned detectives and forensic investigators, unless it revises its skill retention policy. However, the 600 million rand was used for an operation that was generally peaceful. More money needs to be injected into SAPS so they can carry out their duties diligently. Recruiting new officers is welcome, but this may not be an immediate solution for upskilling detectives, forensic investigators, and other specialists. Furthermore, without necessary tools such as vehicles, a full set of riot control gear, ballistic vests (operational), and other equipment, even recruits will work in offices, negating the goal of visible patrolling and mobile crime prevention. Therefore, it is urgent to inject more funds into the SAPS budget.
According to a new study, national roads in South Africa are increasingly turning into zones of criminal risk. It was found that criminals use highways, freight routes, and busy interchanges to commit violent crimes such as kidnappings, shootings, and armed robberies.
The results were presented at the 44th South African Transport Conference in Pretoria. Serolong Kumalo, a communications consultant for SATC, delivered the report. According to him, the study shows that the safety crisis on South African roads goes far beyond issues related to speeding, reckless driving, poor vehicle condition, and weak law enforcement.
Instead, the study indicates that violent crime is becoming an increasingly significant threat to drivers and other road users. Kumalo noted that the safety crisis on South African roads may be more complex than previously thought, as criminals are now actively utilizing the road network itself.
The study, titled 'Road-Based Crimes on the National Road Network: An Initial Investigation,' is part of a broader examination of driver behavior and road safety conducted by the South African National Roads Agency (SANRAL). Researchers argue that acts such as car theft, truck hijacking, cash transport robbery, shootings, and armed assaults can no longer be viewed solely as police matters. These incidents often occur on busy roads, causing panic, sudden braking, swerving, and high-speed pursuits, which endangers many other drivers.
Using crime statistics from the South African Police Service for the period 2013/14 to 2023/24, scientists found that the number of car thefts has more than doubled over the last decade, increasing from 11,180 to 22,702 cases. The number of truck hijackings has also increased in recent years, especially on key freight routes.
One of the most alarming findings was the concentration of violent crime along the N2 highway between Jakes Gerwel Drive and Mew Way, including the R300 intersection in Cape Town. Between 2016 and 2024, 718 incidents were recorded on this section, including 279 hijackings, 268 armed assaults, 156 shootings, and 15 cash transport robberies. This accounted for nearly 47% of all road crimes against private persons recorded in the studied area of Cape Town.
The study also identified crime hotspots in the Gauteng and Eastern Cape provinces, where kidnapping remained the dominant type of crime. Scientists discovered that criminals adapt their methods depending on road layouts, road conditions, and available escape routes. Kumalo emphasized that one of the most worrying conclusions is the growing sophistication of criminals in their activities: they carefully select locations that increase their chances of success and escape.
The report concludes that combating road crime requires more than traditional policing. It calls for the implementation of targeted police surveillance, improved coordination between transport authorities and the police, and focused measures to enhance road safety in South Africa for all users.
A new analysis shows that migration processes in South Africa are fundamentally changing the country's economy, creating new opportunities for the business sector. The study identified three simultaneous trends affecting the labor market, consumer demand, and investment decisions.
According to data from the analytical company Eighty20, South Africa is experiencing a combination of internal labor flows from regions, continued emigration of skilled professionals, and large-scale internal migration towards major economic centers. These changes affect all aspects of company operations—from staff retention to retail strategies and long-term planning.
These findings emerge against a backdrop of intense focus on migration issues following President Cyril Ramaphosa's recent address, in which he acknowledged shortcomings in immigration management, condemning xenophobia, vigilantism, and attempts by private groups to control foreigners. Simultaneously, the anti-immigration movement 'March' is increasing pressure through planned nationwide protests against undocumented migrants.
Eighty20 believes that the presented data offers a more balanced view of how migration shapes the economy. Andre Fulton, Director of Eighty20, noted: 'South Africa is being transformed by multiple migratory forces, each influencing business decisions.' He added that regardless of whether highly skilled professionals leave the country, regional workers arrive, or millions move toward opportunities on city outskirts, companies that correctly read these signals will be where the markets and talent are.
One of the main obstacles in studying migration is the lack of reliable official data. The Department of Home Affairs has not published immigration statistics since 2015, and emigration estimates compiled by Statistics South Africa are based on models rather than actual departure records. Despite difficulties in measuring illegal migration, as many foreigners avoid official surveys, the available data paints a clear picture of South Africa's changing population.
According to the 2022 census, there are 2.4 million immigrants residing in the country, while the Income and Expenditure Index estimate for 2022 and 2023 exceeds three million people, accounting for 5.1% of the population. Nearly two-thirds of immigrants originate from Commonwealth countries of South Africa. Zimbabwe accounts for almost half of the foreign population registered in the 2022 census, followed by Mozambique, Lesotho, Malawi, and the United Kingdom. Most immigrants are working-age men, concentrated in Gauteng and the Western Cape.
Although immigration often dominates political discussions, Eighty20 argues that the outflow of skilled South Africans has even more serious economic consequences. Data from the International Organization for Migration (IOM), updated as of mid-2024, shows that just over one million South African citizens now live abroad, compared to less than 300,000 in 1990. The main destinations are Australia, the UK, the USA, New Zealand, and Germany.
The main problem is not so much the number of those leaving, but their qualifications. The study found that the highest-income taxpayers in the country contribute disproportionately to state revenue, meaning even a small loss of skilled professionals can have significant fiscal and economic consequences. In healthcare, for example, OECD data indicates that over 23,400 South African medical professionals work in the UK, Australia, New Zealand, and the USA, leaving numerous vacancies in the public sector unfilled.
The desire to emigrate is also common among higher-income households. A BrandMapp study found that about 27% of South Africans earning over R10,000 per month consider emigration likely or very likely, and this figure has remained virtually unchanged since 2021. At the same time, millions of South Africans are moving within the country in search of work and better opportunities.
Statistics South Africa estimates that 9.1 million people, roughly one in seven South Africans, now live in a province different from where they were born. This migration pattern consistently points towards the country's main economic hubs. Gauteng accounts for 38% of registered taxpayers and contributes 47% of income tax, despite housing only a quarter of the population. It is projected that the province will gain 1.4 million net new migrants between 2021 and 2026, while the Western Cape expects to attract nearly half a million. An additional study by Wise Move, analyzing nearly 6,000 interprovincial household moves, showed that while movements from the Western Cape to Gauteng sharply increased, the Western Cape remained the strongest net recipient of migrants in 2025, and Cape Town continued to attract residents seeking lifestyle advantages.
Urbanization is accelerating: South Africa's urban population grew from approximately 34.3 million in 2013 to 40.2 million in 2023. Much of this growth is occurring not in city centers, but on the peripheries of megacities, including informal settlements, backyards settlements, and suburban communities.
Eighty20 believes that these demographic shifts have three key implications for businesses. Firstly, it is competition for skilled workers, requiring employers to strengthen retention strategies, conduct international salary comparisons, and invest more heavily in graduate development. Secondly, it is the emergence of new consumer markets. As population growth concentrates in suburban areas, retailers and service providers need to revise expansion strategies to serve these rapidly growing zones. The head of marketing at one of South Africa's fastest-growing clothing retailers emphasized: 'The biggest opportunities for retail growth lie in township and suburban markets, where proximity, value, and relevance are most important. This allows us to engage with a larger number of customers, support local economic ecosystems, and become a trusted part of the communities we serve.'
Finally, Eighty20 warned that xenophobic violence creates growing operational and reputational risks for businesses, including supply chain disruptions, damage to employer brand, and reduced investor confidence. The company also noted that much of the political tension surrounding migration reflects deeper domestic issues, such as unemployment, housing shortages, and poor quality of service delivery, rather than migration itself.
