Kingpins franchise criminal activities

THE business models used by gangs have shifted away from petty criminal activity and evolved into multilayered, wealthy “franchises”.

Specialists refer to Western Cape gangs as merchant gangs with the closest comparison in economic terms being a franchise, according to the city’s Safety, Security and Social Services MEC, JP Smith.

“In gang structures, units deal in stolen goods, drugs, human trafficking and guns,” said Smith.

As the Western Cape government and the City of Cape Town Council roll out safety, security, social services and economic development programmes to uplift communities, street gangs now mirror the rigid, paramilitary organisation of prison numbers gangs in their business models.

The communities where they work are caught up in aggressive bait-marketing techniques and the crossfire which usually occurs when rival gangs are weakened and an opportunity for dominance of the drug market arises.

Alan Winde, MEC for Economic Development and Tourism, said: “Gangsterism impacts every aspect of residents’ lives in affected communities. In turn, it presents a challenge to the entire economy of affected communities.”

Crime discouraged investment into the communities, added Winde. “As a result, economic activity and opportunities move away from communities, and from residents.”