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This report examines the impact of xenophobic violence on Zimbabweans who are trying to make a living in the South African informal sector and finds that xenophobic violence has several key characteristics that put them at constant risk of losing their livelihoods and their lives. The businesses run by migrants and refugees in the informal sector are a major target of South Africa,s extreme xenophobia. Attitudinal surveys clearly show that South Africans differentiate migrants by national origin and that Zimbabweans are amongst the most disliked. This report is based on a survey of informal sector enterprises in Cape Town and Johannesburg; and 50 in-depth interviews with Zimbabwean informal business owners in Cape Town, Johannesburg and Polokwane who had been affected by xenophobic violence. In many areas, community leaders are ineffective in dealing with the violence and, in some cases, they actively foment hostility and instigate attacks. The fact that migrant entrepreneurs provide goods, including food, at competitive prices and offer credit to consumers is clearly insufficient to protect them when violence erupts. However, the deep-rooted crisis in Zimbabwe makes return home a non- viable option and Zimbabweans instead adopt several self-protection strategies, none of which is ultimately an insurance against xenophobic attack. The findings in this report demonstrate that xenophobic violence fails in its two main aims: to drive migrant entrepreneurs out of business and to drive them out of the country.
One of the defining characteristics of many large cities in the rapidly urbanizing global South is the high degree of informality of shelter, services and economic livelihoods. It is these dynamic, shifting and dangerous informal urban spaces that refugees often arrive in with few resources other than a will to survive, a few social contacts and a drive to support themselves in the absence of financial support from the host government and international agencies. This report addresses the question of variability in economic opportunity and entrepreneurial activity between urban environments within the same destination country - South Africa - by comparing refugee entrepreneurship in Cape Town, South Africa's second largest city, and several small towns in the province of Limpopo. The research shows that refugee entrepreneurial activity in Limpopo is a more recent phenomenon and largely a function of refugees moving from large cities such as Johannesburg where their businesses and lives are in greater danger. The refugee populations in both areas are equally diverse and tend to be engaged in the same wide range of activities. This report shows that different urban geographies do shape the local nature of refugee entrepreneurial economies, but there are also remarkable similarities in the manner in which unconnected refugee entrepreneurs establish and grow their businesses in large cities and small provincial towns.
This report compares the business operations of over 2,000 South Africans and refugees in the urban informal economy and systematically dispels some of the myths that have grown up around their activities. First, the report takes issue with the perception that South Africans are inexperienced and unmotivated participants in the informal economy. Many have years of experience and have successfully grown their businesses. Second, it contests the view that refugees enjoy a competitive advantage because they come to South Africa with inherent talent and already honed skills. On the contrary, over 80% of those surveyed had no prior informal sector experience and learned their skills on the job and after coming to South Africa. Third, the report shows that there is fierce competition in the urban informal sector between and within the two groups. However, business competition between refugees and South Africans is mitigated by the fact that they tend to dominate different sections of the informal economy with South Africans dominant in the food sector and refugees in the household products and personal services sectors. Finally, the report takes issue with recent arguments that all informal sector businesses are equally at risk from robbery, extortion and other crimes. It shows that South Africans are affected but that refugees are far more vulnerable than their South African counterparts. The report therefore confirms that xenophobia and xenophobic violence are major threats to refugees seeking a livelihood in the informal sector, especially if they venture into informal settlements.
Zimbabwe has witnessed the rapid expansion of informal cross-border trading (ICBT) with neighbouring countries over the past two decades. Beginning in the mid-1990s when the country embarked on its Economic Structural Adjustment Programme (ESAP), a large number of people were forced into informal employment through worsening economic conditions and the decline in formal sector jobs. The country,s post-2000 economic col-lapse resulted in the closure of many industries and created market opportunities for the further expansion of ICBT. This report, part of SAMP,s Growing Informal Cities series, sought to provide a current picture of ICBT in Zimbabwe by interviewing a sample of 514 Harare-based informal entrepreneurs involved in cross-border trading with South Africa.
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