The Bank of Namibia, BoN, says the country’s tourism sector and the state of the entire economy would suffer greatly if xenophobic attacks in South Africa do not cease immediately.

The South African rand slid sharply against other major currencies as xenophobic violence erupted in some of South Africa’s major cities, including Johannesburg, Durban and Cape Town three weeks ago.
The BoN says Namibia, who depend on South Africa for about 70 percent of its imports, would suffer a current account deficit if the Namibian dollar continued to depreciate, as its import bill would be settled in a higher amount. The Namibian dollar is pegged at a ratio of one to one with the South African rand.
The Tourism Business Council of South Africa recently reported cancellations in some tourist visits since the attacks erupted. “Should this situation (attacks against foreigners) continue the (South African) tourism sector would most likely be the most negatively affected and as such the Namibian tourism sector may be indirectly affected as a result,” the BoN said.
The xenophobic attacks could also drive foreign investors away as they may regard the South African environment too risky to invest in, the BoN says. “South Africa is the biggest economy in Africa and Southern Africa in particular, (and) this could only mean economies such as Namibia may also suffer reduced Foreign Direct Investment because of lower investor confidence,” the bank says.
The Namibian Chamber Commerce and Industry (NCCI) said it has not received any specific complaints of losses from its clients, but says the private sector could be affected. NCCI’s CEO Tarah Shaanika said the attack could bear negative consequences on the region’s quest to import skills and expertise from foreign personnel.
“We totally condemn the attacks as we believe this could have significant implications on the (southern Africa) region. Most tourists come to Namibia via South Africa, while others come straight here but have South Africa as their next destination, and therefore they are likely to cancel their overall trips,” Shaanika said.