Business Forums or Construction Mafias in the construction industry in South Africa and the factors that contribute to their existences
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University of the Witwatersrand, Johannesburg
Abstract
This study examines the rise of business forums in South Africa's construction industry, sometimes known as construction mafias. According to the report, the key factors contributing to their persistence include economic marginalisation, corruption, and insufficient law enforcement. Twenty industry stakeholders, including project managers, contractors, local government representatives, and law enforcement officers, took part in semi-structured interviews as part of a qualitative research strategy. The data was evaluated using thematic analysis, which revealed that business forums have deviated from their original goal of encouraging economic empowerment and have instead evolved into coercive groups that interfere with project execution. According to the findings, eliminating forum-related interruptions necessitates closing regulatory loopholes, strengthening law enforcement capacities, and ensuring fair access to construction opportunities and to strengthen governance and stimulate long-term transformation in the industry. The study concludes with crucial recommendations for policymakers and industry participants to solve business forum disruptions in the construction industry. It emphasises the importance of tougher regulations, increased law enforcement, and transparent procurement processes in combating illicit activity. Furthermore, economic empowerment initiatives, such as support for new contractors and skill development, are critical to industry transformation. Collaboration between the public and private sector is also critical for mitigating risks, promoting fair competition, and ensuring long-term sustainability, resulting in a safe and inclusive building industry.
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A research report submitted in fulfillment of the requirements for the Master of Business Administration, in the Faculty of Commerce, Law and Management, Wits Business School, University of the Witwatersrand, Johannesburg, 2025
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Sithole, Lungani Ntuthuko . (2025). Business Forums or Construction Mafias in the construction industry in South Africa and the factors that contribute to their existences [Masters dissertation, University of the Witwatersrand, Johannesburg]. WIReDSpace.