Business has warned that the violence and looting that has engulfed Gauteng will have a devastating effect on an already weak economy, as parts of SA’s economic hub were brought to a standstill on Tuesday.
Business Unity SA (Busa) and Business Leadership SA (BLSA) both spoke out against the violence, mostly against businesses owned by non-locals in parts of Johannesburg, Ekurhuleni and Tshwane during the past week, and the negative effect it would have on an already ailing economy and the country’s image.
The violence comes as SA is hosting the World Economic Forum in Cape Town, an event the country hoped to use to highlight its attractiveness as an investment destination, and overshadowed the release of a report that showed a bigger than forecast rebound in the economy in the second quarter.
MTN, Africa’s largest mobile operator, which serves a quarter of Nigeria’s almost 200-million population, also condemned the violence. It said it believed in the potential of a continent "whose nations pursue deeper trade, integration and co-operation".
Busa president Sipho Pityana said some people were "taking advantage of the situation and waging war" on SA’s economy.
"These attacks send a terrible signal at a time when we should all be pulling together to make our economy stronger, to make our country a safe place to live, and to ensure that South Africans are seen as welcoming investment, commerce and a respect for human life and property."
The reportedly co-ordinated attacks have seen residents going on the rampage, looting foreign-owned businesses in Tembisa, Alexandra, Hillbrow, Cleveland, Jeppestown and the Johannesburg CBD since Sunday. The violence continued on Tuesday, spreading to other areas including Germiston on the East Rand. Similar violence also took place in the Pretoria CBD last week.
Police spokesperson Col Lungelo Dlamini said five murders had been reported — two in Coronationville, two in Hillbrow and one near a hostel in Jeppe.
Listen | What Police Minister General Bheki Cele plans to do about violent looting in Gauteng
A total of 189 people have been arrested since Sunday.
President Cyril Ramaphosa spoke out against the violence on Tuesday, saying that it went against the ethos that SA espoused.
SA was completely "against xenophobia, we do not allow and cannot tolerate attacks on people from other African countries and indeed from other countries", he said.
The president said he was convening a meeting with ministers from the security cluster on Tuesday and had directed police minister Bheki Cele to meet hostel leaders.
"This violence is now mutating and taking different forms and representing themselves in ways that we do not want to see in SA, where communities seem to be attacking one another, so we want this to stop — and I want it to stop immediately," said the president.
Cele said police had been told to "jack up" deployment, especially against looting and destruction of property.
Busa acting CEO Cas Coovadia said the scenes playing out in the cities were inhibiting the attraction of investment and business growth.
BLSA said small, medium and micro-sized enterprises were an important sector in growing the economy, and will play a key role in getting the country out of the economic morass in which it finds itself.
The Gauteng legislature postponed its sitting.
Acting legislature speaker Nomvuyo Mhlakaza-Manamela said the decision was taken in an effort to allow MPLs to intervene and provide stability in areas where there were incidents of violence and looting.
African Diaspora Forum spokesperson Amir Sheikh
said the violence was coming at the wrong time and would
have a significant effect on
SA’s economy.
The Johannesburg Chamber of Commerce and Industry said it believed the malicious attacks and the destruction of any business would have dire consequences for investment.
"We urge all tiers of government to face this multifaceted problem, which is not new but has been allowed to brew and fester, with great urgency and purpose," the chamber said.
"Looting and pillaging is a very dangerous form of behaviour which could have very bad consequences for all and should be treated accordingly by our law enforcement agencies."
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