Guiding consumers since 2009

The long term impact of the Soweto looting

By Staff Writer
Over the past week there has been looting and violence against foreign shop owners across Soweto and surrounding areas. The trigger for this latest spate of violence against foreigners began when a 14 year old boy, Siphiwe Mahori, was allegedly shot dead by a foreign shop owner when the boy and his group of friends reportedly tried to rob the store.
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 Get personal with your finances – and tie the knot

As time passes, your financial products may not live up to your needs. Therefore, it’s important to take stock of what you’re paying for and adjust where necessary. We got in touch with financial advisers to find out how you can get your finances in order, and what you should do to ensure you’re financially stable.

Personal loan or business loan? The best way to finance your business

When starting your own business, you may have to rely on external funding. Perhaps you qualify for a personal loan, but would it be better to take out a business loan instead? We got in touch with a specialist to find out whether it’s best to take out a business loan or a personal loan to assist you with your ongoing business or start-up.

What to do when you’ve been denied a home loan

After months of scanning property sites and attending showhouse after showhouse, you’ve finally found what you’ve been looking for. But your dream of owning a home comes crumbling down when you receive the news that you’ve been denied a home loan. So, what now?

Best travel cards offered by top South African banks

Planning a trip abroad involves a lot of administration. You need to consider travelling arrangements, reasonable accommodation, and a daily itinerary. But have you considered how you’re going to pay your bills once you arrive? Besides considering bank costs, you also need to consider exchange rates.


Takealot January Big Sale

Price: Available on request
When: Until 31 January 2020
Where: Online

Annique Restore Package Special

Price: From R600
When: Until 31 January 2020
Where: Centurion

Ster-Kinekor Senior Citizens Discount

Price: Available on request
When: Daily
Where: Nationwide