Tit-for-tat attacks target SA firms

● South African companies were this week dealing with the fallout from the xenophobic attacks in SA, closing stores and stepping up security at some of their operations elsewhere in Africa.

Mobile phone operator MTN, restaurant chain Spur and retailer Shoprite are among those that have had operations affected after reprisals in Nigeria and Zambia.

In Lagos, Nigeria’s largest city, five Spur restaurants were vandalised this week, CEO Pierre van Tonder told Business Times.

The American-themed restaurant chain has had a presence in Lagos for seven years and though the outlets are run by a franchisee in Nigeria, consumers associate the brand with SA.

“We are busy building another two [restaurants] but we have now put that on hold,” Van Tonder said.

MTN said that four of its outlets in Nigeria had been attacked this week and as a result the company closed all its stores and service centres in the country. Nigeria is MTN’s largest market and the company said it remained committed to providing uninterrupted service.

Africa’s largest grocer, Shoprite, said it was highly concerned about the acts of xenophobic violence against foreign nationals that sporadically flare up in SA.

Some of the retailer’s stores in Zambia and Nigeria could not open on some days this week because of protest action. By Friday, its stores in Zambia had reopened, but operations were still disrupted in Nigeria and the Democratic Republic of Congo.

Massmart, which operates Game and Builders Warehouse, also closed a few of its stores in Nigeria and Zambia as a precautionary measure.

Pay-TV giant MultiChoice, which broadcasts in 50 countries on the continent, urged its customers to shun violence.

“In the interest of safeguarding our customers and staff we have taken the decision to close some of our offices in Nigeria and Zambia until the situation is under control,” company spokesperson Joe Heshu said.

Several South African financial services providers have interests elsewhere in Africa, but their operations have not been targeted. Most of the large banks said they were monitoring events. FNB had stepped up security, said CEO Jacques Celliers.

International relations & co-operation minister Naledi Pandor said she had been in contact with several South African companies operating in the rest of the continent, but that it was the responsibility of the respective countries and their security forces to safeguard business interests.

“They must protect businesses which are providing a very important economic resource to their countries, including significant employment. They have a duty as much as we do in SA to police appropriately and ensure that what has been happening does not continue.”

They [other African countries] must protect businesses which are providing a very important economic resource Naledi Pandor

International relations and co-operation minister