Business braces for the impact of xenophobia

The current spate of xenophobic attacks in South Africa will have serious repercussions for the country if it is not addressed in earnest, experts have told FTW. As South Africa deployed soldiers to deal with the unrest, several governments in Africa have called on the South African government for answers. In a statement, Nigeria said it had summoned the South African government to protest the attacks. At least seven people have been killed, several injured and hundreds displaced from their homes in the past two weeks. According to Dr Martyn Davies, ceo of Frontier Advisory, xenophobia is affecting South Africa’s reputation in Africa. “And terribly so. A main concern should be potential boycotts of South African firms and products in Africa’s rising emerging consumer markets,” he said. “The damage to South Africa’s brand and aspirant leadership on the continent has been destroyed and will take a long time, if ever, to recover. Where South Africa was previously looked to for leadership, this is no longer the case.” Claudine Fry, Africa research manager for Control Risks, said, “The violent responses to the violence have been limited so far. There has been the intimidation of vehicles at the Mozambique- South Africa border but the vast majority of responses to the violence have taken the form of rhetoric and protest.” But, she said, xenophobic violence in South Africa would always carry the risk of retaliatory violence if not contained, although the risks would vary hugely across the continent and sectors and depend on the nature of the outbreak. The biggest impact, according to Fry, would be on the reputation of South Africa as an investment destination. She said companies should continue to monitor the situation closely as it could have significant impact on operations, from causing tension among workers to boycotts of South African products and services. “It would also be advisable to check the status and readiness of crisis response policies,” said Fry. Have you experienced the impact of xenophobia on your business? Let us know: e-mail adelem@nowmedia.co.za INSERT & CAPTION A main concern should be potential boycotts of South African firms and products in Africa’s rising emerging consumer markets. – Martyn Davies CAPTION A placard held up at last week's protest march against xenophobia in Johannesburg.