Now dust has settled down, victims of xenophobia demand compensation

JOHANNESBURG:

BUSINESSES hit by xenophobic attacks in South Africa in May are still to get compensation for damages incurred, and this is threatening to lower investor confidence in the country.


 
Businesses worth about at R1.5 billion were destroyed during weeks of onslaughts on foreigners, which also left over 60 people killed and some 30 000 displaced.
 
The attacks originated from the poor township suburbs of Alexandra before spreading to Diepsloot, Eastrand, Hillbrow, Johannesburg Central Business District, and eventually igniting in several other suburbs, resulting in wanton destruction of property and heavy loss of life.
 
Worryingly, South Africa’s governing African National Congress (ANC), South Africa Communist Party (SACP) and the Congress of South Africa Trade Unions (COSATU), have not raised the issue of compensation despite condemning the disturbances when it happened.
 
As if that was not enough, South Africa’s Black Economic Empowerment (BEE) did not make any public statement condemning the action, which could scare away investors from an otherwise vibrant economy.
 
Most foreign nationals doing businesses in South Africa contribute close to 25 percent of the Gross Domestic Product (GDP), with their contributions being channelled towards the uplifting of locals’ lives through tax.
 
The tax on most African nationals is estimated at 25 percent of the local GDP and has contributed to the improvement of the country’s defence and security system, upgrading of public infrastructure such as hospitals, stadiums, roads, airports and rail.
 
The anxiety is showing among foreigners operating businesses in South Africa as they feel the government needs to do more to safeguard their investments in the wake of the xenophobic disturbances.
 
“What worries most of us is that we are not here for the sake of being in SA, but we are doing business that contributes towards the uplifting of ordinary people’s lives through government taxes. Whether I operate an internet café or food outlet in the street, the South African government is taxing me.
 
“Every month my money is deducted, be it my salary or my company’s monthly revenue tax, I feel cheated and robbed,” said Obina Okoli, a Nigerian national operating a chain of internet cafes in Johannesburg.
 
Duke Francoise of Cameroon, who has investments in Pretoria and Mamelodi, noted that heavy taxes they were paying were part of human life development system, and therefore they need to get security they deserved from the State.
 
“As an African foreign national with investments here, paying tax to government is part of my contribution towards developing people’s lives in South Africa. Apart from that, I also create employment for the locals.
 
“Putting up clinic or hospital structures throughout the country is none of my business, but the government’s responsibility because we give their government the required revenue.
 
“The xenophobic attacks were unfortunate. Now that the dust has settled, this matter should be taken further with the SA government,” said Francoise.
 
Questions were sent to the attention of both African National Congress president Jacob Zuma, the party’s secretary-general Gwede Mantasha, South Africa Communist Party (SACP)’s Blade Dzimande and Congress of South Africa Trade Unions (COSATU) general secretary Zwelinzima Vavi, but for about two weeks, no response was forthcoming from the leadership.
 
Even BEE has also remained silent on the compensation issue which upset most foreign investors, both the affected and those who survived.
 
“Surely, how does BEE feel about the xenophobic attacks perpetrated against us? They are what they are because of our economic contributions to the government. I am wondering why up to now the BEE leaders such as Tokyo Sexwale, Patrice Motsepe and several others have not said a word on  compensation of fellow blacks doing business in South Africa,” said Mudzingwa Machakaire of Zimbabwe.
 
It remains to be seen whether the government will eventually compensate the businesspeople caught in the attacks, which might have had an impact even on tourism and was threatening to mar the 2010 FIFA World Cup until it was brought under control.

—CAJ News.
 

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