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Xenophobia – Organised Crime or Spontaneous Fear?

Dear Subscriber,

Sleeping Giants get irritable

Nigeria and South Africa have traditionally been geopolitical allies, trading partners and reciprocal investors. Recent spontaneous uprisings have tested this age-long relationship. The question is why the Rupture and more so why Now?

Is high-income inequality the trigger?

Some analysts have attributed this to a fallout of organised crime and an elaborate narcotics network while others think that it is the resentment of the unemployed and deprived (Gini coefficient at 63.4 and unemployment at 29%). The xenophobic tit for tat between South and Africa is a replica of the ‘Ghana must go’ days in the 1980s. The squabble is a threat to domestic and regional macroeconomic stability and diplomatic relations.

Rapprochement or MAD (Mutually Assured Destruction)

With at least 10 dead and over 100 Nigerians repatriated, the 2 heads of state are now scheduled to meet soon to resolve these issues amicably. With bilateral trade of over $3.3bn, there is a lot at stake.

In the slides, the FDC Think Tank attempts to highlight the trade and investment relations between the countries and the impact an escalation of the tensions could have on their economies.

Enjoy your read!

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