Business Report

Cape Town protest leaders say they face escalating threats from 'extortion gangs'

Lilita Gcwabe|Published
Members of civic organisations protesting in Cape Town's CBD on 30 June 2026, demanding stronger enforcement against illegal trading and calling for the removal of undocumented foreign traders from public trading spaces.

Members of civic organisations protesting in Cape Town's CBD on 30 June 2026, demanding stronger enforcement against illegal trading and calling for the removal of undocumented foreign traders from public trading spaces.

Image: Ayanda Ndamane / ANA Studio

Organisers behind the recent wave of protests against illegal foreign-owned informal businesses in Cape Town say they have begun receiving threats, raising fears that an increasingly volatile campaign could turn violent.

The latest warning comes after another demonstration in Bellville on Wednesday, one of several protests held across the city in recent weeks by civic organisations demanding the removal of what they describe as illegal foreign traders from public trading spaces.

The protests have taken place in areas including Bellville, Cape Town CBD and other parts of the metro, with organisers vowing that demonstrations will continue until authorities act on their demands.

Labour and Civic Organisation (LACO) Western Cape leader Sipho Mahilili said members of the organisation have been threatened as tensions between protest groups and alleged extortion networks continue to rise.

"We are receiving threats," Mahilili said, adding that the organisation has become increasingly concerned about the safety of its members.

His comments come amid growing concern following the recent killing of a March and March leader in Gauteng, an incident that has heightened fears for activists involved in anti-illegal immigration campaigns across the country.

In a message circulated on social media after Wednesday's protest, Mahilili alleged that those involved in so-called protection fee networks believed activists were intimidated by them.

"Foreigners think we are scared of protection fee collectors and they are mistaken," the post read.

The message went on to claim that South Africans were "tired... of tolerating this lawlessness" and warned that "we will fight fire with volcano."

In another section of the post, Mahilili claimed the group knew who the alleged protection fee collectors were "from Khayelitsha to Gugulethu" and called on supporters to send the names, photographs and addresses of people they believed were involved.

During Wednesday's demonstration in Bellville, protesters again called for foreign traders to be removed permanently from the area, insisting that the campaign would continue until authorities acted on their demands. The demonstration followed similar protests elsewhere in Cape Town, where organisers have repeatedly accused authorities of failing to adequately enforce informal trading laws.

The City of Cape Town confirmed that representatives of organisations raising concerns over informal trading met with officials from several City departments on 13 July.

According to the City, the meeting formed part of its ongoing engagement with stakeholders and covered allegations relating to trading permit allocations, enforcement activities and broader informal trading management.

Among the outcomes of the meeting, the City said officials reiterated that only uniformed law enforcement officers have the legal authority to enforce the law.

The City also said that foreign nationals who have been issued trading permits are authorised to trade only after their legal status and right to work in South Africa have been verified by the Department of Home Affairs.

The City's Public Trading Department is also assessing allegations that informal trading permits are being disproportionately allocated to foreign nationals. However, it said no findings have yet been made that would warrant changes to its current permit allocation process.

Addressing the escalating tensions and threatening messages circulating online, the City said allegations relating to intimidation, extortion, threats or protection fee networks should be reported to the South African Police Service (SAPS) for criminal investigation.

"The City does not comment on unverified allegations and encourages individuals to report any criminal matters to SAPS so that they may be properly investigated," it said.

By the time of publication, Constable Ndakhe Gwala from SAPS acknowledged the questions but had not yet confirmed whether criminal cases relating to threats, intimidation or assaults linked to the protests had been opened in recent weeks, or what measures were being taken to prevent further escalation.

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