Nationalising South African companies in Nigeria bad for African economy: expert

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WITH Nigeria’s ruling party urging the government to nationalise South African companies operating in the West African nation, an expert warned that it will do harm to the whole African continent.

‘If Nigeria starts nationalising South African companies, it would be bad for the African continent. It would dent the ability to do business,’ said Jannie Rossouw, Head of School of Economic and Business Sciences at the University of the Witwatersrand.

Nigeria’s All Progressives Congress (APC) party chairman Adams Oshiomhole last Friday said the government should consider taking steps to take over the remaining shares of MTN, a South African mobile telecommunications company, and other South African companies.

Rossouw told Xinhua on Monday that nationalising South African companies would be bad for trade relations. He said South African companies such as MTN play a big role in Nigeria’s economy.

‘If Nigeria can do this, I’m sure other countries can do the same,’ he said.

Oshiomhole’s remarks came after foreign nationals living in South Africa experienced xenophobic violence since the end of last month.

With the ongoing clashes, Nigerian President Muhammadu Buhari is scheduled to visit South Africa in October to find solutions to these anti-migrant sentiments.

 

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