Xenophobia Hits Informal Trade

Informal traders count losses as transport and business activities slow down

SESUPO RANTSIMAKO

Ongoing xenophobic protests in South Africa are beginning to take a heavy toll on Botswana’s informal sector, with cross border traders reporting disrupted business operations and mounting financial losses.

TRADERS FEAR

Speaking to The Botswana Gazette amid the escalating unrest, Botswana Informal Sector Association (BOISA) Secretary General Mpho Matoteng said the protests, which have affected several parts of South Africa in recent days, have created uncertainty and fear among informal traders who rely on the neighbouring country for goods and business supplies.

Matoteng said the hardest hit are cross border businesses that import clothes and vegetables from South Africa for resale.

BORDER DISRUPTION

Matoteng said the ongoing unrest has slowed the movement of people and merchandise between Botswana and South Africa, threatening the livelihoods of hundreds of small scale entrepreneurs who depend on cross border trade for survival.

According to Matoteng, many cross border traders have suspended trips to South Africa amid safety concerns and fears of possible attacks on foreign nationals and businesses.

“This has negatively affected business because we rely on South Africa for imports. We have no option but to suspend operations until the situation calms,” he said.

SUPPLY FEARS

The BOISA Secretary General also raised concerns that the disruptions are likely to affect the availability and prices of various products commonly imported from South Africa, including clothing, groceries, household goods, and electronics.

Botswana’s informal sector depends heavily on cross border trading activities, particularly with South Africa, which remains the country’s largest trading partner.

For many small business owners, regular trips across the border are essential for restocking merchandise and sustaining daily operations.

SECTOR PRESSURE

Traders have warned that prolonged instability in South Africa could severely affect their incomes and place additional strain on already struggling small businesses.

Matoteng said they are seeking intervention from the Southern African Traders Association, although no formal decision has yet been made.

Xenophobic protests have recently erupted in South Africa, with foreign nationals and their businesses being targeted. Some businesses have been forcibly closed, with foreigners accused of taking South African jobs.

GOVT WATCH

The Minister of International Relations, Dr Phenyo Butale, recently told The Botswana Gazette in an interview that government is closely monitoring the situation.

He said that although Batswana currently remain safe, particularly those living in or visiting South Africa, they should continue to exercise caution and remain vigilant as the situation evolves.