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Xenophobia Backlash Raises Risks for South African Businesses Across Africa
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Xenophobia Backlash Raises Risks for South African Businesses Across Africa

South African companies operating across Africa are facing growing pressure as anti-immigrant protests in the country spark diplomatic tensions and calls for action against their businesses.

The backlash follows reports of attacks, looting and displacement involving foreign nationals in South Africa. More than 2,700 people from Ghana, Nigeria, Mozambique and Malawi have returned home amid fears that the demonstrations could worsen. Authorities also arrested 7,400 undocumented migrants in the past month for immigration-related violations.

MTN Responds to Growing Concerns

The unrest has increased scrutiny on major South African firms, including MTN Group, Standard Bank Group and Gold Fields.

MTN has sent the senior vice president for markets, Ebenezer Asante, to meet government officials in Ghana. In Nigeria, the telecommunications company is supporting 1,350 citizens who returned from South Africa. The support includes SIM cards, data bundles and cash grants.

“We have not seen impacts specifically to our business, but we’re very sensitive in markets such as Nigeria and Ghana,” MTN Chief Executive Officer Ralph Mupita said.

“MTN makes less than 20% in South Africa and makes 80% of our earnings elsewhere,” he said. “We were born in South Africa, but we are a pan-African organisation now.”

Diplomatic Pressure Mounts

The protests have also strained relations between South Africa and other African countries.

Ghana’s Foreign Minister Samuel Okudzeto Ablakwa has called on the African Union to discuss the treatment of African migrants in South Africa. In Nigeria, Foreign Affairs Minister Bianca Odumegwu-Ojukwu said the government is considering possible measures after Nigerian citizens returned from South Africa.

Meanwhile, activists in Ghana are urging authorities to take a tougher stance on South African businesses operating in the country.

Businesses Monitor Situation

Standard Bank said it remains “focused on the safety and well-being of our employees and clients, as well as the uninterrupted delivery of services through our operations.”

Gold Fields, which operates the Tarkwa gold mine in Ghana, is also facing a tougher business environment. The Ghanaian government wants greater local participation in the mining sector and is reviewing mining lease renewals more closely.

The company said, “We are currently engaged in the process of renewing the Tarkwa mining lease,” adding that discussions with the government remain constructive.

South Africa hosts about three million immigrants and has experienced periodic xenophobic violence over the years. Commenting on the latest unrest, Justice Minister Mmamoloko Kubayi said: “The brand is hurting. We can’t lie about that.”

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