I agreed for market entities situated in Australia. We appear to be affected by the growing political stability in the region with the insurgents in Mozambique causing huge issues and fears of crossing the border and now the South Africa riots. The media is not helping.
South Africa: Chaos Control - Foreign Confidence in Africa at a low
Foreign governments and investors have been rattled by the mayhem in KwaZulu-Natal and Gauteng. Many are wondering if this is just another episode of chronic looting and destruction on a larger scale, or the first tick of the time bomb they have long been expecting in SA.
They want to see if President Cyril Ramaphosa can bring the chaos under control.First published in the Daily Maverick 168 weekly newspaper.The looting and destruction clearly damaged SA's international prestige. African Union Chairperson Moussa Faki Mahamat condemned the violence and called for "the urgent restoration of peace, order and stability ... in full respect for the rule of law".
Other countries usually on the receiving end of such knuckle-rapping, like Zimbabwe, are probably quietly crowing - though also concerned. Zanu-PF's secretary for external affairs, Simbarashe Mumbengegwi, called for calm in SA, saying any instability in any country in the region affects the others.
There is speculation that the deployment of 25,000 soldiers to quell the violence may force the SA government to cancel its plans to contribute troops to a Southern African Development Community (SADC) standby force to be deployed into Mozambique's Cabo Delgado province to combat Islamist rebels.
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