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South Africa: Don't touch tiger by the tail

April 22, 2015

                       For  weeks now we have witnessed well planned and targeted attacks on foreigners in South Africa. Those attacks have resulted in deaths, and untold destruction of property. And it is clearly obvious that South African security agencies have not done enough. But the issue here is that of  lack of opportunities for local blacks. I really understand what they are going through and the worse is that most of them are not even employable . And the only way to vent their anger is by attacking their brothers from different mothers.                  

                       This makes sense:  get them out,  and that would create opportunities for the locals and labour cost will  go North. I feel that black led governments in South Africa have failed their people and  they have not being able to grow their economy or create the much needed jobs. This is a common pattern across Africa: where  masses of  people face limited opportunities and daily challenges. I feel that it is time for something urgent and meaningful to be done.  Time to tackle the issue of high unemployment .                                                              

                       African economy is becoming highly integrated and cross-border trades are becoming common. South Africa with its highly advanced economy is leading the charge. They have world-class companies across the continent making giant strides, taking risks, and also reaping handsome profits. Nigerian banks are everywhere in sub-sahara except South Africa. Dangote cement, a Nigerian based company, is currently running riot across Africa. This is a good development and it is likely to help spur Africa's economy. Mobility of capital across the continent has encouraged labour mobility too. But the bitter truth is this; Poorly educated and poorly equipped society is likely to be left behind. This is where majority of South African blacks found themselves now. And if they chase out their teachers , nurses, engineers, and doctors, then let them be prepared to live in stone ages.                                     

                       From the data I got from the media about 800 thousand Nigerians are living in South Africa. Some are core professionals in diverse fields helping to boost South Africa's economy and advance its technology.  However, we have others who are shop owners and  petty traders. I should also point out that we have a lot of criminals--419ers ,drug peddlers, robbers, kidnappers, and core criminals. Let's look at what Nigerians in South Africa make  in year based on remittances and South Africa's economy. I would make a blind guess of 4 000 USD which gives a total of 3.2BUSD. That is a huge sum of money. But in Nigeria you have leading South Africa  brands with virtual control of the local economy. MTN nets more than 1.5BUSD from Nigeria, however if you throw in SABMillers, IBTC and RAND banks, DSTV(a company that does not honor Nigerian courts), South Africa Airline, Shoprite, Games, Protea and SASOL into the equation then you will have about 6BUSD. So, who is milking who? Who stands to gain or lose from this wild dance?  If Nigeria decides to close her doors to South Africa businesses, South Africa economy will definitely feel the hit. 

 

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