'South Africa's xenophobic attacks costing Zimbabwe's cross border traders'
Harare, Zimbabwe (PANA) - Cross border trading has been significantly affected by the recent wave of xenophobic attacks targeting immigrants in South Africa, Vendors Initiative for Social and Economic Transformation (VISET), an NGO, has said.
In recent weeks, a part of the South African population has attacked immigrants blaming them for that country's high unemployment rate as well as accusing them of taking their jobs.
Zimbabweans have been among those who were attacked as officials estimate that there could be between three and four million nationals from Zimbabwe living in South Africa.
“Not only immigrants residing in South Africa are affected but also Cross Border Traders who, once or twice a week have to restock their wares through imports from South Africa. Over the past seven days, deaths and severe injuries have been the order of the day," VISET, in a statement said.
"With such a setting, an informal trader is prohibited for transaction and is likely to experience a significant loss of capital as most, if not all, their stock is perishable products.”
VISET is an advocacy group promoting the participation of vendors in economic, policy and legislative processes.
“Considering the hot-blooded environment in the informal sector, the cross border trader is heftily affected by the prevailing situation as attacks on immigrants have spilled to border areas where most of cross borders traders weekly transact to restock their wares in most parts of Zimbabwe," VISET said.
This is set to affect a significant portion of foreign currency receipts for Zimbabwe, as it is estimated that cross-border traders had an annual revenue stream of US$416.3 million as at 2017.
However, from September 2018 to date, this annual revenue stream has since increased due to the rise in prices translating to more market opportunities for cross border traders to sell cheaper goods.
Compared to Zimbabwe, South Africa has cheaper goods that has allowed cross border traders to buy for reselling locally.
Cross border traders are part of Zimbabwe’s large informal sector estimated to contribute between 60 and 70 percent to the gross domestic product annually.
“There has been notable absence of vital goods and products in shelves of small and medium enterprise operators as violence against immigrants is now directly affecting free movements of goods from one country to another,” VISET said.
“As the Zimbabwean economy is striving on imports mainly from South Africa, we demand our government to take necessary measures to ensure the protection of cross border traders.”
VISET said the stock availability was being thwarted by the occurrence of xenophobic attacks.
The xenophobic attacks of immigrant employers or employees is happening in South Africa despite that country depositing its instrument of the AfCFTA (Africa Continental Free Trade Area) Ratification Agreement on the 10 February, 2019.
The AfCFTA promotes the free movement of goods, services and people among African economies.
As of July, the AfCFTA agreement had been ratified by 27 African countries.
-0- PANA TZ/MA 8Sept2019
