Based on reporting by Simnikiwe Mzekandaba, ITWeb (July 28, 2025).
A Sector Under Siege
South Africa’s telecommunications industry is facing mounting pressure from organised crime syndicates. Extortion, vandalism, and theft are not only disrupting infrastructure development but also delaying service delivery for millions of people.
According to Thokozani Mvelase, CEO of the Communication Risk Information Centre (COMRiC), these criminal networks are increasingly shaping how telecom operators plan and execute projects nationwide.
COMRiC: Safeguarding Telecoms Against Crime
COMRiC, a non-profit crime and risk intelligence hub, was founded by major operators including Vodacom, MTN SA, Telkom, Liquid Intelligent Technologies, and Cell C.
Its mission is to identify and mitigate threats affecting the sector, from cybercrime to physical sabotage. In its inaugural 2025 Telecommunications Sector Report, COMRiC estimated that telecom fraud — including subscription fraud, SIM box crimes, cybercrime, and infrastructure vandalism — cost the sector R5.3 billion in 2024.
Extortion and the “Construction Mafia”
Beyond theft and vandalism, telecoms are battling syndicates known as the “construction mafia.”
These groups demand payment or cooperation before allowing new infrastructure projects to proceed. As Mvelase explained:
“We can’t lay new infrastructure in an area because organised syndicates want to extort something from you before you can do any work… we invest more in resuscitating old infrastructure than in laying new infrastructure because of these impediments.”
The result: delays that leave communities and small businesses without connectivity. Since telecom operators often share infrastructure, a single disruption ripples across multiple providers.
The Financial and Societal Impact
The implications of organised crime extend well beyond the operators:
- Revenue Loss: Telecom companies face costly project delays and infrastructure losses.
- Economic Impact: Small businesses and entrepreneurs struggle to function without reliable connectivity, slowing economic growth and access to essential services.
Although COMRiC works closely with NATJOINTS (National Joint Operational and Intelligence Structure) and private security providers, limited law enforcement resources remain a major challenge.
The Wider Construction Mafia Context
The telecom sector is not alone. The construction mafia has infiltrated other industries, exploiting the 2017 Preferential Procurement Regulation, which requires that 30% of a project benefits the local community. Syndicates use this mandate as a pretext for extortion, demanding bribes, “stakes” in projects, or compliance under threat of violence.
Historical data paints a troubling picture: in 2019 alone, 183 infrastructure projects worth R63 billion were disrupted by construction mafias, with invasions escalating in subsequent years (OCCRP, 2022).
Conclusion
Organised crime is now a strategic barrier to South Africa’s telecom development. Infrastructure rollouts are delayed, operational costs are rising, and communities are left behind.
COMRiC’s work underscores the urgent need for coordinated interventions between private operators, law enforcement, and policymakers. Without decisive action, organised crime will continue to undermine both digital transformation and socio-economic development.
References
- Mzekandaba, S. (2025, July 28). SA telecoms sector ‘heavily’ impacted by extortionists. ITWeb.
- De Rebus. (2017). Preferential Procurement Regulation, 2017. South African Attorney Journal.
- Organised Crime and Corruption Reporting Project (OCCRP). (2022). Infrastructure and construction mafia in South Africa.
- Inclusive Society. (2025). Construction mafias and business forums in SA.
Call to Action
📡 Protecting connectivity means protecting communities.
With tools like Realm ID and RealSign, telecoms can secure workflows, verify identities in high-risk environments, and ensure critical approvals are tamper-proof — even in the face of organised crime.
👉 Get in touch with Realm to see how we can help strengthen resilience in South Africa’s telecoms sector: Contact Us.