PRETORIA, South Africa (XOL Africa) — South Africa’s presidency warned Thursday that any retaliatory action against South African businesses operating in countries such as Ghana and Nigeria would undermine investment, discourage trade and hurt economic growth across the region.
The remarks came after Ghana postponed high-level bilateral talks with South Africa amid rising diplomatic tensions linked to recent protests over undocumented immigration and calls by some Ghanaian politicians for measures against South African companies.
Presidential spokesperson Vincent Magwenya said targeting South African businesses would have consequences extending beyond South Africa, damaging the investment climate in the countries taking such action.
“Any move to appropriate South African company assets in any of these countries will be counterproductive and will undermine those countries’ economic development aspirations,” Magwenya told reporters during a media briefing in Pretoria.
He said such actions would send a negative signal to international investors.
“It will signal that those countries are now closed for trade and business. It will also signal a greater degree of uncertainty of doing business in those countries,” Magwenya said.
He added that the potential economic fallout would affect the countries involved as much as South Africa.
“It will be a move whose repercussions go beyond South Africa, for that matter. And so, we are not overly worried about that talk,” he said.
The diplomatic friction follows growing debate in Ghana over the presence of undocumented immigrants and broader concerns surrounding foreign-owned businesses. The postponement of bilateral talks has raised concerns about relations between two of Africa’s leading economies, although neither government has announced formal economic sanctions or restrictions against businesses.
South African companies have significant investments across Africa, including in banking, telecommunications, retail and mining, making the country one of the continent’s largest sources of foreign direct investment. Analysts say any measures targeting those businesses could disrupt regional trade and investor confidence.
