Xenophobia backlash threatens regional export growth

The recent wave of xenophobic violence in SA has raised fears amongst local business leaders and officials that this violence against other African nationals could further hit an already weak economy. Already there have been loud calls for a boycott of SA products in countries such as Malawi, Zambia, Zimbabwe and Mozambique, who are expressing outrage about their citizens being attacked by mobs in Johannesburg and Durban. There have also been calls by some members of African governments to put pressure on SA businesses. And this could have an adverse effect on quite a number of SA brand names. Just a mere few of those operating across southern Africa include such giants as MTN, Vodacom, Pick n Pay, Shoprite, Spar, Game, Massmart, Old Mutual, Sanlam, Standard Bank, Nedbank, Sasol, Sappi, Bidvest, Imperial, Barloworld, Steinhoff, Anglo and De Beers. And there are hundreds more of all hues, shapes and sizes. And there is also a threat to tourism – a major industry in SA and one which generates income for an extremely large cross-section of many diverse businesses. The upsurge in anti-SA sentiment amongst African populations could also hit SA exports into the continent in the likes of cars, clothing and textiles, food products, white goods and a whole range of other consumer items. And these at the moment generate export income of some R260 billion. Just one relatively small example of an SA business getting hurt, and the range of other businesses that were also affected, came from Brett Bachmann of the Maritime Shipping Academy. “My biggest clients are based in Nigeria,” he told FTW. “They are cancelling all future visits to SA. And that means that the likes of SAA, hotels, shopping malls, tour operators and ourselves are the ones who will lose. “Such a shame. Continuing visa problems for Nigerians coming to SA on business add to our woes.” INSERT My biggest clients are based in Nigeria and they are cancelling all future visits to SA. – Brett Bachmann