Investors pull back as crime grips Eastern Cape

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Business leaders have raised serious concerns over the surge in violent crime in the Eastern Cape, warning that incidents such as kidnapping and extortion are severely undermining investor confidence in the province.

Foreign Business Owners Targeted

At the recent Ultra Performers Business and Leadership Gala in Gqeberha, stakeholders raised serious concerns about organised crime driving businesses away.

According to BusinessTech, property developer Sisa Ngalwana, who built retail developments across the country, warned that criminals targeting and extorting entrepreneurs are holding back the Eastern Cape’s economy.

This past week, the Hawks reported that kidnappers abducted a Chinese national on his way from a Gqeberha market to his business in Kariega.

Weeks earlier, kidnappers abducted a Pakistani businessman in Graaff-Reinet and demanded a ransom of R4 million.

Since 2022, community leaders in Buffalo City Metro have reported that criminals kidnapped nearly 200 foreign nationals, mainly from Pakistan and India, in the province.

When factoring in undocumented or unreported cases involving Ethiopian, Somali, and Bangladeshi nationals, experts estimate the true number is much higher.

Data from the South African Police Service (SAPS) confirmed the trend. Between October and December 2024, the province recorded 205 kidnappings averaging more than two per day.

Government Promises Action

Chamber CEO Denise van Huyssteen urged government to urgently increase police resources and manpower in the province.

She acknowledged that poverty and unemployment contribute to crime, but said there is no justification for allowing criminality to go unchecked.

The Democratic Alliance echoed the warnings, blaming the province’s under-resourced crime intelligence for emboldening criminals.

“The SAPS responds to crime instead of preventing it,” the party said in a statement.

Minister of Police Senzo Mchunu addressed the matter at the Ministerial Business Partnership Dinner earlier this month.

He acknowledged that violent crimes like kidnapping and extortion not only hurt the economy but also pose a risk to democratic stability.

SAPS has a constitutional obligation to protect all South Africans,” said Mchunu, adding that law enforcement needs advanced technology, better intelligence, and improved working conditions to be effective.

What more do you think can be done to protect business owners and restore safety in the Eastern Cape?

Let us know by leaving a comment below, or send a WhatsApp to 060 011 021 1.

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