Victoria Ruzvidzo Business Focus
The xenophobic wave of violence that has gripped South Africa in the past week as one African turns against the other is not only shameful or just a social or political issue, but it is one that could have serious ramifications on the region’s economy. It needs to be brought to a halt. Regional integration has long been established as one strategy through which economies in the region can achieve sustainable growth and impact the lives of its citizenry.

Not only has this been established in SADC but other regions on the continent and elsewhere in the world.

Asia and Europe have experienced high levels of growth, barring the intermittent global crisis, largely as a result of integration and the prosper-thy-neighbour concept. It is, therefore, a sad day for the continent to witness some excitable South Africans engaging in such self-destructive behaviour.

Indeed the region and Africa at large has come out in full force to condemn the myopic xenophobic attacks.

Why would the South Africans throw away all reason and dignity to destroy that which the region and the continent at large is seeking to build to rid Africa of such vices as poverty and disease.

We need each other as neighbours. We count on each other’ strength and competitive advantage to bring the sum total levels of development the region and the continent at large yearn for.

This should be our pre-occupation hence we should not entertain anything that threatens our neighbourliness.

“Give them (Blacks) guns and they will kill each other. They are good at nothing else but making noise, dancing, marrying many wives . . . Let us all accept that the black man is a symbol of poverty, mental inferiority, laziness and emotional incompetence. Isn’t it plausible therefore, that the Whiteman is created to rule the Blackman . . . and here is a creature (Blackman) that lacks foresight . . . the average black does not plan his life beyond a year.”

This is an extract from a speech made by former South African President PW Botha to his cabinet about 27 years ago.

In that speech Botha trashed the black person and said all they were good at was to destroy each other. Do these words hold true? Was this the SA prophecy that has come to pass? Should we give weight to such ugly assertions?

Of course the former president was inspired by his deep hatred of blacks which blinded him from discerning the kind of people we truly are but should we, through our actions, give currency to those words?

From Zimbabwe’s standpoint, the presence of our nationals in South Africa, or any other country for that matter, has brought increased development and economic growth as our nature as hard workers and highly skilled people positively impact these economies.

We could be excused for thinking that South Africa has benefited immensely from the presence of our nationals in that country, particularly that country’s financial sector which, at the last count, was largely being run by Zimbabweans.

Of course this country has benefited from remittances coming from such engagements and other facets as well.

If they were cases where Zimbabweans and other foreigners have elbowed South Africans to the periphery then this would be a matter that could be discussed soberly and solutions sought without spilling blood and causing untold trauma on those trying to eke a living while helping Africa’s second largest economy in the process.

Zimbabwe is the largest consumer of South African products, with that country earning billions of dollars from this country. That in itself means SA has a competitive advantage which it must guard jealously.

Causing mayhem over the presence of Zimbabweans and any other Africans in that country is a self-destructive mode that the country may live to regret.

Statistics show that the presence of other nationals or immigrants in economies does not necessarily bring a raw deal to that country but instead, helps develop the economy. Below is a story on how the United Kingdom has benefited from immigrants.

EU migrants contribute £20bn to UK economy, study finds

Contrary to the popular view that European immigrants are a burden to UK taxpayers, a new study by University College London has found that people arriving from the EU contributed £20 billion to the British economy between 2000 and 2011.

The study also found that immigrants from the so-called new Europe — the 10 countries that joined the EU in 2004 including Poland, Romania and Turkey — added £4,96 billion more to the public purse in taxation between 2004 and 2011 than they took out in benefits.

The study accessed from www.cream-migration.org/files/FiscalEJ.pdf>, the Fiscal Impact of Immigration to the UK, also found that immigrants arriving from continental Europe are better educated than the UK population at large; 60 percent of arrivals from southern and western Europe and 25 percent of those arriving from Eastern Europe have university degrees. This compares with 24 per cent of the UK-born workforce.

Professor Christian Dustmann, co-author of the study, said: “A key concern in the public debate on migration is whether immigrants contribute their fair share to the tax and welfare systems. Our new analysis draws a positive picture of the overall fiscal contribution made by recent immigrant cohorts, particularly of immigrants arriving from the EU.”

Professor Dustmann added: “European immigrants, particularly, both from the new accession countries and the rest of the European Union, make the most substantial contributions. This is mainly down to their higher average labour market participation compared with natives and their lower receipt of welfare benefits.”

Overall, the report shows that “European migrants to the UK are not a drain on Britain’s finances and pay out far more in taxes than they receive in state benefits,” The Guardian <http://www.theguardian.com/uk-news/2014/nov/05/eu-migrants-uk-gains-20bn-ucl-study> says. — The Week.

* * *

South African foreign investment confidence will suffer as a result of the xenophobic attacks in Durban, according to an economist

Xenophobic attacks on African immigrants in Durban have escalated over the past week, prompting Cabinet’s security cluster to announce measures to bring the situation under control.

Foreign investors take the stability of a country very seriously, macro-economist Dr Harold Ngalawa told Fin24 on Tuesday.

An economy characterised by violence and lawlessness is not good for investment, said the University of KwaZulu-Natal academic.

Xenophobia is typically both violent and lawless. As an economy, we benefit from foreign investment, he said.

“Foreign investors sit down and do an analysis of a country they want to invest in and stability is one of the factors they consider. If you put yourself in the shoes of an investor, you would sit back and wait to see where this is going to.”

Township economies will also suffer

The micro-economy of townships in Durban will see prices climbing due to the eradication of elements of competition, said Dr Ngalawa.

Most of the foreigners being attacked owned spaza shops and have been forced to flee with whatever they can take with them.

People who had similar businesses can now trade with less competition, he said.

“That presents problems to consumers as they will become less well-off.”

Increases in prices happen for different reasons, he said. “Traders could justify it (using) the increasing electricity tariffs for example, and with weakened competition, the likelihood of prices going up in the townships is high.”

South Africa can learn from its neighbours

Dr Ngalawa said he has travelled to many African countries, including Uganda, where South African anti-apartheid fighters were protected before democracy.

They really looked after South Africans, he said. In Uganda, they created special places for South Africans, including cemeteries especially for SA exiles.

If South Africans travel to other countries in Africa, even after the 2008 xenophobic attacks, they are treated well, he said. Those countries do not think of inflicting revenge as a result of xenophobia here.

South Africa could learn a lesson from its neighbours, he said. — News24Wire

In God I trust!

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