A South African man and his two sons, including a serving police officer, have appeared before a Cape Town magistrate over allegations that they extorted about 50 convenience stores owned by Ethiopian and Somali nationals.
A Somali national was also arraigned over allegations of collecting so-called protection fees from shopkeepers in the Stellenbosch area of South Africa’s Western Cape Province.
The cases have drawn renewed attention to the growing problem of extortion targeting foreign-owned spaza shops, amid a wider organised-crime economy affecting businesses ranging from construction companies to nightclubs.
Community leaders say foreign-owned businesses are particularly vulnerable because their operators may be reluctant to report threats to the authorities.
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Fransina Lukas, head of the community policing forum in the Western Cape, said extortion gangs often begin by demanding monthly payments in exchange for alleged protection.
According to her, businesses that refuse to pay may face harassment, robbery and, in some cases, deadly attacks.
The violence has raised further concerns following several killings at spaza shops in the province.
In July, at least two foreign nationals were among four people killed in a shooting at a spaza shop in Franschhoek.
The same month, a 31-year-old Somali shopkeeper was shot dead while serving customers in Cape Town’s Bonteheuwel area.
Police linked both incidents to extortion rather than the wave of xenophobic violence that had affected foreign nationals across parts of South Africa.
FOREIGN-OWNED BUSINESSES VULNERABLE
Somali-owned spaza shops are reportedly among the businesses frequently targeted in Cape Town’s Khayelitsha township, although local South African business owners are also affected.
Community leader Mawande Jara said extortion fees can vary depending on the estimated income of a business.
He alleged that some criminals demand access to bank statements to determine how much money they believe a business can afford to pay.
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Victims, however, often remain silent because of fears of retaliation.
Jara also expressed concerns that information provided to the police may sometimes reach criminal gangs, leaving victims exposed.
The problem is not limited to retail businesses.
In June, men reportedly visited an Islamic school and mosque in Cape Town and demanded an initial “registration fee” of 3,000 rand, followed by monthly payments of 500 rand.
A representative of the centre, who spoke anonymously, said no physical threats were made but that the individuals were known to be dangerous.
The centre eventually paid the initial fee before reporting the matter to police.
‘HEAVIES FOR HIRE’
Organised-crime investigator Chad Thomas said some individuals are increasingly turning to hired enforcers to settle disputes outside the formal court system.
He attributed the trend partly to frustration among business owners over lengthy civil court proceedings.
Police statistics indicate that the Western Cape remains one of South Africa’s major extortion and gang-violence hotspots.
The province accounted for nearly half of 112 protection-racket extortion cases recorded nationally between April and June.
It also recorded 30 of the country’s 76 murders at spaza shops during the same period.
In addition, 217 gang-related murders were recorded in the Western Cape over the three-month period.
Acting Police Minister Firoz Cachalia has acknowledged that extortion has increased dramatically in recent years.
He admitted that authorities are still struggling to find an effective response to the rapidly expanding crime.
For foreign-owned spaza shops and other small businesses, the growing extortion economy represents not only a financial threat, but an increasingly serious threat to lives and livelihoods.
