National Construction Summit on Crime-Free Construction Sites

The South African construction industry contributes approximately 3% to the gross domestic product (GDP), employs over 1.3 million South Africans (176,000 jobs added in the third quarter of 2024) and plays a critical role in the economy. The construction industry also has an unmatched multiplier effect in that for every R1 million invested, more than three jobs are created. This is the highest multiplier across all sectors in our economy. These statistics were shared by the Deputy Minister of Finance, the Honourable Ashor Sarupen, at the National Construction Summit on Crime-Free Construction Sites held at Durban’s ICC on 19 November 2024. The Deputy Minister went on to reveal that criminal syndicates and site disruptions have hindered over 180 projects worth R63bn since 2019.

The Deputy Minister outlined a three-pronged approach as part of a strategic plan which includes:

• Public procurement reform.
• Expanding PPPs.
• Scaling infrastructure development.

It was indicated that subcontracting will be allowed only where feasible and must follow due process to prevent abuse, and also called for direct payments to subcontractors and stricter subcontracting requirements designed to curtail exploitation and delays. He stated that “Government entities will have the option to pay subcontractors directly, eliminating the delays and exploitation often experienced under the current system.” He further stated that efforts to revitalise the construction sector are part of the broader reform under Operation Vulindlela, which is a joint initiative between Treasury and the Presidency launched in 2020.

Operation Vulindlela has achieved significant progress in:

• Stabilising the electricity supply.
• Reducing the cost and improving the quality of digital communications.
• Securing sustainable water supply.
• Enhancing the efficiency of freight transport.
• Reforming the visa regime to attract skills and grow tourism.

The Deputy Minister said, “Phase 2 of Operation Vulindlela focuses on creating dynamic and integrated cities to support urbanisation and economic growth. This will require substantial contributions from the construction sector to build housing, schools and transport infrastructure needed for our rapidly growing urban population.”

Minister of Public Works, the Honourable Dean Macpherson, made a compelling call for heightened police intervention for site disruptions. The Honourable Minister Macpherson highlighted that the gathering is not aimed only at discourse but at initiating tangible change underscored by the urgency of combating criminal disruptions that hinder South Africa’s infrastructure developments. He further highlighted the impact of these criminal activities which have plagued both public and private sector projects and the far-reaching consequences, including the disruptions to essential services in vulnerable communities. The Honourable Minister Macpherson called for a joint and collaborative approach from all stakeholders in combating these unlawful site disruptions.

The Honourable Minister of Police, Senzo Mchunu, stated that Gauteng, Western Cape and KwaZulu-Natal are the engines of South Africa’s economy and cannot be handed over to mafia syndicates. He advised that the SAPS is escalating its investigations to apprehend those behind these syndicates.

The Durban Declaration of Crime-Free Construction Sites is the product of the Summit and was signed by the Minister of Public Works & Infrastructure, the Deputy Minister of Police, the Deputy Minister of Finance and the cidb Chairperson. Honourable Minister Macpherson said, “The purpose of the Declaration is to outline a collective commitment to eradicate extortion and violence on construction sites and [pledge an] initiative mechanism to urgently and immediately give effect to this commitment.” The Declaration proposes a series of interventions to be implemented over the next year to end disruption at construction sites including:

• Strengthening the legislation governing the construction industry.
• Implementing appropriate policies for the development of the construction industry.
• Prioritising law and order through enhanced data collection and reporting systems.
• Enhancing the rapid response to lead to arrests for extortion on construction sites and prosecutions.
• Developing standard frameworks and guidelines for embedding social facilitation in project planning and implementation.
• Providing for the systematic and structured development of emerging enterprises and skills development.
• Establishing collaborative platforms for industry stakeholders to share best practices.
• Collaborating on solutions to the problems faced by the construction industry.

In addition, the National Extortion Hotline number was shared: 0800 911 011.

The Association has developed a guideline for members in responding to site disruptions. Click here to download.

Bilaal Dawood

Head: Membership Services