Cape Town Activists Warn of Rising Extortion Gang Threats

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Key Takeaways

  • A series of protests targeting illegal foreign‑owned informal traders has swept across Cape Town, with demonstrations in Bellville, the CBD and other suburbs.
  • Organisers, led by Labour and Civic Organisation (LACO) Western Cape head Sipho Mahilili, say they are receiving threats and fear the campaign could turn violent.
  • The threats echo concerns raised after the killing of a March and March leader in Gauteng, heightening anxiety among anti‑illegal‑immigration activists.
  • Mahilili’s social‑media message accused “protection fee” networks of extortion, claimed foreigners mistake activists for being scared, and urged supporters to name alleged perpetrators.
  • Protesters demand the permanent removal of foreign traders from public trading spaces and insist demonstrations will continue until authorities act.
  • The City of Cape Town met with stakeholder representatives on 13 July, reiterating that only uniformed law‑enforcement officers can enforce trading laws and confirming that permit holders must have verified legal status and work rights.
  • The City is reviewing allegations that trading permits are disproportionately allocated to foreign nationals but has found no evidence to change its allocation process.
  • Authorities advise reporting any intimidation, extortion or threats to the South African Police Service (SAPS) for criminal investigation; SAPS has acknowledged the concerns but has not yet confirmed opened cases or preventive measures.

Background and Scale of the Protests
Over the past few weeks, Cape Town has witnessed a growing wave of demonstrations organised by civic groups opposed to what they describe as illegal foreign‑owned informal businesses operating in public trading spaces. Protests have flared in Bellville, the central business district and several other suburbs, with participants chanting for the immediate removal of these traders. Organisers argue that the presence of undocumented foreign vendors undermines local entrepreneurs, contravenes municipal trading bylaws and contributes to a sense of lawlessness in the affected neighbourhoods. The demonstrations have been peaceful thus far, but organisers have warned that the campaign will persist until the city authorities take concrete action to enforce existing regulations and reclaim public spaces for lawful traders.

Rising Threats and Safety Concerns for Activists
Sipho Mahilili, the Western Cape leader of the Labour and Civic Organisation (LACO), revealed that his members have begun receiving threats as tensions escalate between protest factions and alleged extortion networks linked to foreign traders. In a candid statement, Mahilili said the organisation is “increasingly concerned about the safety of its members,” noting that the threats have arrived via phone calls, social‑media messages and possibly in‑person confrontations. The warning underscores a growing apprehension that the activist movement, which began as a call for regulatory enforcement, could be drawn into a more dangerous confrontation if intimidation continues unchecked.

Connection to Violence and Past Incidents
Mahilili’s remarks come on the heels of the fatal shooting of a March and March leader in Gauteng, an event that has reverberated through activist circles nationwide. The killing has heightened fears that those campaigning against illegal immigration and associated informal‑trade practices may become targets of retaliatory violence. By referencing this incident, LACO underscores the seriousness of the current climate and suggests that the threats they are experiencing are not isolated but part of a broader pattern of hostility toward activists who challenge perceived unlawful foreign economic activity.

Allegations of Protection Fee Networks and Intimidation
In a social‑media post circulated after Wednesday’s Bellville protest, Mahilili alleged that so‑called “protection fee” networks—groups that allegedly extort money from traders in exchange for allowing them to operate—believe activists are intimidated by them. He countered this perception, declaring that “foreigners think we are scared of protection fee collectors and they are mistaken.” The post urged supporters to gather and submit the names, photographs and addresses of individuals they suspect of involvement in these extortion rings, framing the call as a communal effort to expose and dismantle the alleged racketeering. This rhetoric illustrates how the protest narrative has expanded beyond simple: framing foreign traders not only as unlawful vendors but also as participants in a shadow economy that threatens local safety.

Details of the Bellville Demonstration
During the Wednesday demonstration in Bellville, protesters reiterated their core demand: the permanent removal of foreign traders from the area’s public trading spaces. Speakers emphasized that the campaign would not cease until municipal authorities acted decisively to enforce informal‑trading bylaws and revoke any permits issued to vendors lacking proper documentation. The Bellville rally mirrored earlier actions in other suburbs, where organisers have accused the city of lax enforcement and of allowing illegal traders to operate with impunity. By maintaining a visible presence in multiple locations, the demonstrators aim to sustain pressure on officials and keep the issue in the public eye.

City of Cape Town’s Engagement and Official Stance
On 13 July, representatives of the organisations raising concerns met with officials from several City of Cape Town departments. The City described the meeting as part of its ongoing stakeholder engagement, focusing on allegations concerning trading‑permit allocations, enforcement activities and broader informal‑trading management. Officials reiterated that, under current legislation, only uniformed law‑enforcement officers possess the authority to enforce trading laws. They also confirmed that any foreign national issued a trading permit must first have their legal status and right to work verified by the Department of Home Affairs. Additionally, the City’s Public Trading Department is examining claims that permits are disproportionately awarded to foreign nationals but stressed that, to date, no findings have emerged that would justify altering the existing allocation process.

City’s Response to Threats and Call for Police Action
Addressing the circulating allegations of intimidation, extortion and threats, the City urged anyone experiencing or witnessing such conduct to report it to the South African Police Service (SAPS) for criminal investigation. A municipal spokesperson clarified that the City does not comment on unverified claims and emphasized the importance of letting law‑enforcement handle potential criminal matters. This stance reflects the municipality’s desire to distance itself from unverified accusations while encouraging a formal, evidence‑based approach to address any illegal activity linked to the protests.

SAPS’ Current Position and Outlook
Constable Ndakhe Gwala of SAPS acknowledged the inquiries regarding threats and possible criminal cases tied to the protests but had not, at the time of publication, confirmed whether any cases had been opened or what preventive measures were being implemented. The police response indicates an awareness of the rising tensions but also highlights a gap in publicly available information about active investigations or protective strategies. As the situation evolves, both activists and city officials will be watching closely to see whether law‑enforcement can curb the threats and prevent the campaign from slipping into violence.

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