The Centre for the Promotion of Private Enterprise (CPPE) has warned that proposals by some lawmakers to target South African investments in Nigeria over the xenophobic attacks in South Africa will be “inappropriate, disproportionate and counterproductive”.
The economic policy advocacy group said that retaliatory measures such as revoking the operating licences of South African firms or nationalising South African-owned assets could damage bilateral relations, weaken investor confidence and undermine African economic integration.
The Chief Executive Officer of the CPPE, Dr Muda Yusuf, condemned the recent xenophobic attacks in South Africa, noting that Nigerians had reportedly been among the victims.
In a statement, Dr. Yusuf cautioned against extreme responses to the attacks, following calls by some lawmakers, including Senator Adams Oshiomhole, for Nigeria to revoke the licences of South African companies such as MTN and DSTV.
“The incidents in South Africa are not reflective of official South African government policy; rather, they are acts of criminality perpetrated by non-state actors driven largely by socio-economic frustrations.
“However, extreme responses by the Nigerian government, as proposed by some members of the National Assembly, such as targeting South African investments in Nigeria, revoking operating licences of South African firms, or nationalising South African-owned assets, would be inappropriate, disproportionate, and counterproductive.
“Such measures could damage longstanding bilateral relations, weaken investors’ confidence, and undermine the broader objective of African economic integration. The Centre for the Promotion of Private Enterprise strongly advises against any such course of action,” he said.
He said that the attacks were fuelled by economic and social problems in South Africa, including unemployment, poverty, inequality, weak public service delivery, and governance challenges, affirming that many frustrated citizens in South Africa wrongly channel their anger towards African migrants perceived to be economically successful in retail trade and informal businesses.
“Nigerians appear particularly vulnerable because of their strong entrepreneurial presence in South Africa’s informal economy. Nigerian traders, professionals, and service providers are generally resilient, competitive, and economically active.
“Unfortunately, this has created resentment among some locals who wrongly believe that migrants are taking over economic opportunities and jobs,” Yusuf added.
GIK/APA