The xenophobia attacks occurring in the Gauteng province in South Africa seem to be getting worse by the day. Many foreigners have lost their homes and possessions with lives being lost in the process. The attacks are said to be stemming from South Africans who do not want foreigners in the country anymore. Violent scenes and pictures of these attacks are being screened across the world and as the international community looks on, one can only wonder how much these attacks will start to affect the local economy. Yesterday (Tuesday) the rand was sharply weaker against major currencies as concerns about the xenophobia attacks by the foreign community started to weigh in on the currency.

There are suggestions that these attacks are not strictly about xenophobia and that there are some criminal intents with the attacks. It is no secret that the poor South African is suffering largely due to the escalating prices of power, food and transport. It is the poor South Africans who are initiating these ‘xenophobia’ attacks. Many people are unable to afford a good living in the townships of South Africa and maybe their frustrations with this are now being shown through these attacks. These attacks may just be a sign that many people, mostly the poor, are starting to feel the pinch of the economy in South Africa. The price of fuel is going up on a regular basis, food is becoming unaffordable and interest rates continue to rise. The poor suffer the most in such conditions and the ‘side affect’ of this maybe these attacks.

The sooner the attacks stop the better. The more negative images South Africa portrays to the rest of the world the greater the chances that foreign investors will shun away from investing in South Africa. There is nothing stopping these attacks from spilling over into major business districts in South Africa. Over the weekend, shops belonging to foreigners were looted in the Johannesburg CBD. These shops are part of the South Africa economy and loosing them is a loss to the economy even if it is no a significant loss.

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