Final summary.
The recent xenophobic attacks not only have an immense negative effect on South Africa’s economy but it will also affect the growth of local companies in their efforts to expand into other African countries.
If not resolved quickly, the disruptions caused by the xenophobic attacks to normal business operations and the threat of more widespread attacks across the country will worsen the financial position of the South African economy and may add to the factors that will result in further downgrades in the country.
The foreigners from across the continent have great potential to contribute to the South African economy.
Local businesses fear the violence will have a negative impact on South African business companies operating elsewhere in Africa. Rather than trying to settle in the country, a significant number of immigrants are traders, who rent hotel rooms, pay value added tax on the goods they buy, and then leave. This has a positive impact on South Africa’s economy. Therefore, African immigrants in South Africa are enhancing the economy of this country and should be respected and not be killed and have their properties destroyed.
The recent xenophobic attacks in some parts of KwaZulu-Natal have caused the closure of many big South African companies across the African continent, and the South African nationals were placed at risk. The Durban xenophobia attacks made many foreign investors pause, giving serious consideration to the stability. This scares off foreign investment in the country.
The micro environment of some parts badly affected by the xenophobia will definitely experience high prices on basic goods, due to the elimination of essential competition in those areas.
Tourism serves as a large multiplier of income and is a generator of employment in South Africa. However one of the major obstacles to tourism achieving its economic and