| By Gavin Chait,
on 13 June 2008
|
 South Africa's warmest welcome continues... Over the past weeks, our African neighbours have been treated to the spectacle of their relatives and friends being tortured and murdered by mobs of South Africans. The initial response from President Thabo Mbeki – the man who would have us believe that a pan-African renaissance of ideas and economic growth is possible – was to call for a commission to be set up to investigate the causes of the turmoil. The violence is spreading. The same police who usually hassle African economic migrants for bribes while threatening them with deportation, whether they're here legally or not, are now tasked with defending them. It is unsurprising that the response to contain the – and let's call it what it is – attempted genocide, is both inadequate and unconvincing. At the same time, our government is debating ways to diversify our economy and kick-start meaningful growth to absorb job-seekers and so reduce some of the frustration that underlies the violence.
The immediate result to our economy appears to have been minor. The rand has not dived against comparable markets, and the stock exchange has held up. But that ignores the fact that the rest of the world is not particularly interested in what we have to sell. Mining, which makes up a paltry 6.5% of the whole economy, makes up a substantial 80% of our exports. International investor response will be of the "opportunities lost" variety, rather than of investment withdrawn. Yet our African neighbours have, to date, been interested in what we sell. Prior to the misery of "Quiet Diplomacy", Zimbabwe used to be South Africa's second largest trade partner. Companies from MTN to Shoprite have entered the African continent with tremendous success. This has created investment opportunities both in the destination country, as well as in South Africa where production has been increased. These are all markets where South African companies must compete on equal terms with those from China, Europe and the US. One of the best adverts for choosing one country's investors over another's is the experiences that your friends and relatives have there. Right now, a large number of South African businessmen must be answering a lot of pointed and awkward questions. "Why should we let you buy that mining right? None of our people are welcome in your country, why should you be welcome to exploit ours?" There is also the small matter of tourism and business travel. Of the 779,094 tourist arrivals recorded by Stats SA in February this year, 71% came from Africa. Our SADC neighbours have long treated visits to South Africa as extended shopping trips. The growth of the African tourist market has been an astounding 12% compared to the 6% of tourists from Europe and the US. The world justifiably reacted in shock when the Burmese dictatorship considered it more important to hold a referendum on a new constitution last week, than to ensure that aid reached the millions of people whose livelihoods and homes have been destroyed by Cyclone Nargis. It is no less shocking that the ANC and government consider dismembering the Scorpions more important than ensuring that the human rights enshrined in our constitution are enforced for everyone in South Africa, irrespective of whether they are here legally or not. Over the next weeks and months, after this episode is carefully contained, South African leaders are going to have a great deal of relationship-building to do with our African neighbours. Otherwise the hopes of an African economic renaissance, with South Africa as its champion, will lie dashed in the ash of the victims of this tragic, xenophobic, genocide. |
