The long term impact of the Soweto looting
Over this past weekend approximately 100 shops were looted. The violence has led to the loss of many lives, including a 19 year old boy, Nhlanhla Monareng, who was shot by a store owner when he shot into a crowd that was trying to loot his shop, and a baby who was killed in a stampede.
Other victims include Dan Mokwena, a 74 year old Malawian shopkeeper, who was attacked and killed by a crowd when he was found sleeping inside his shop.
According to one economist, the current violence against foreigners in the townships could have a negative medium to long term impact on business confidence in South Africa.
Director and chief economist at Econometrix Dr Azar Jammine explained: "[This] is the kind of thing that reduces confidence in the long term future of the South African economy, and to that extent if there is less investment you end up with less economic growth as well."
Jammine believes that if foreign shop owners are chased out of the townships or if they are unable to conduct business properly, the residents will be forced to shop at more mainstream commercial stores, such as Pick n Pay and Shoprite, where they could end up paying more.
He said: "People would still have to spend, but they will probably have to spend more because the profit margins that these big stores demand would probably be higher."
Meanwhile, the government have been hesitant to label the attacks on foreign shop owners as 'xenophobia'.
According to reports, Lebogang Maile, Gauteng economic development MEC, has said that the looting that has taken place this past week highlighted the slow paced economic development that is taking place in the region.
He believes that the violence is not spurred on by an anti-foreigner prejudice, but rather by criminality in the area as people are struggling financially.
Recent Articles
Featured What factors colour your credit application?
When you apply for a loan, your prospective creditor will assess whether you can afford the monthly repayments. But what do creditors actually consider on your credit report, and what most interests them?
Is good debt a good reason to take out a personal loan?
When you’re in a pinch and you need to borrow money, you may reach out to a creditor for a personal loan. The upside of this kind of loan is that you can spend the money on anything you choose. However, just because you can use it for anything, does not mean you should.
Checklist for a good consolidation loan
Debt can get out of hand if it’s not managed properly. That is why it’s important to be realistic about your budget and consider affordability before you take a loan. However, if your debt still gets out of hand, there are ways you can rein it in again.
What is a mortgage, and should you get one?
It’s a fairly common occurrence, especially in slow economies, for a family overwhelmed with bills to take out a second mortgage on their home. But how good an idea is this?
Deals
Get 40% off your Easter holiday at The President Hotel
Price: Available on request
When: 01-30 April 2021
Where: Cape Town
Colosseum Deluxe Suite Special
Price: R990
When: Until 31 August 2021
Where: Cape Town
One & Only Fitness Special
Price: Available on request
When: Until 30 April 2021
Where: Cape Town