South African president, Cyril Ramaphosa
The President of South African, Cyril Ramaphosa has strongly warned against seizing or nationalising South African businesses (like MTN and DStv) in Nigeria, Ghana, and other African countries as a form of retaliation for the recent xenophobic crisis that resulted in the mass evacuation of foreign nationals.
Spokesperson of the presidency, Mr. Vincent Magwenya said it would cause devastating economic consequences for those countries scaring away investors, destroying jobs, and hurting their own economies.
Business Hilights.ng recalls that whereas the Nigeria’s aviation giant, Air Peace has concluded the evacuation of stranded Nigerians from South Africa, last week at the Nigerian National Assembly, Senators Wasiu Eshinlokun (Lagos Central) and Adams Oshiomhole (Edo North) called for the nationalization and seizure of assets belonging to South African companies in Nigeria.
The senators made these proposals during an upper legislative chamber plenary session addressing renewed xenophobic attacks and the destruction of Nigerian properties in South Africa.
Details of the legislative actions showed that the lawmakers suggested seizing the assets or revoking the operating licenses of South African-owned companies in Nigeria—such as MTN and MultiChoice (DStv)—and using the proceeds to compensate affected Nigerian victims.
Though the Senate rejected the nationalization proposal via a majority voice vote and choosing to press for diplomatic accountability and protection of legitimate foreign investments instead, many other African economies including Ghana are considering hostile takeover of South African businesses in retaliation of xenophobic attacks of their nationals in South Africa after all.
