Cape Town – The Chairperson of the Inter-Ministerial Committee on Migration, Minister Jeff Radebe, says government is focusing on providing economic assistance to communities where there is strain between locals and foreign nationals.
The Minister, who is also responsible for the Ministry in the Presidency for Planning, Monitoring and Evaluation, said government would tackle poverty and unemployment, as well as support the development of informal traders in townships and rural areas in order to mitigate attacks on foreign nationals.
“Government will prioritise economic growth and job creation through the implementation of the National Development Plan.
“We will also expedite the national programme to revitalise township and rural economies,” he said.
He said this when he briefed the ad hoc committee on attacks on foreign nationals on Tuesday.
The Minister said government’s response was due to concerning trends that were emerging from townships.
This includes:
- Business models used by foreign nationals that often discourage competition from local businesses;
- Financial and business practices that are monopolistic and cartel-like;
- Foreign business owners who evade tax in order to fix prices that are below those of local businesspersons;
- Migrant business owners using their international connections to import counterfeit goods, while some illegally sell expired goods, and
- Some evading customs and excise duties by under-declaring imported products.
Shift in ownership of spaza shops
Minister Radebe said the IMC has noted a study conducted by the Sustainable Livelihoods Foundation that revealed a concerning shift in ownership of spaza shops to foreign nationals.
The study, released in June 2012, evaluated the trend’s negative impact on poor locals, with a particular focus on women and children.
The report revealed that in Ivory Park, east of Johannesburg, foreign nationals owned 147 spaza shops, while locals owned 70 shops in June 2012.
In July 2012 in Tembisa, 73 spaza shops were owned by foreign nationals compared with 41 by South Africans.
In Imizamo Yethu, 51 spaza shops were foreign owned compared with seven owned by South Africans, while in Vrygrond, foreign nationals owned 86 against 44 owned by South Africans.
High numbers of foreign nationals impacting labour market
The Minister said low-skilled migrants from SADC countries residing legally and illegally in South Africa were entering the labour market and were in direct competition with the local labour force.
He said the business sector preferred to employ these nationals because they sell their labour at a significantly lower price; they are generally not unionised and they are easily exploited compared with local workers, who generally know their rights.
The Minister said government will, to further respond to the socio economic impact, develop and implement a programme to audit and license informal businesses, as well as enforce relevant local government regulations.
He said government will prioritise the granting of work permits to foreign nationals that have the skills required by the economy.
“Government will also involve leaders in the development of mechanisms for the management and integration of foreign nationals in rural communities,” he said. – SAnews.gov.za
