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TL;DR: Recurring attacks on foreign nationals in South Africa have caused real harm to people and communities, and in September 2026 they became a diplomatic issue when Nigeria’s National Assembly suspended official visits to South Africa. For businesses, the lesson is that political risk is not only about legislation. Social tension can affect employees, operations, property, reputation and relationships across borders, and it is worth understanding where those exposures sit and how existing cover responds.
Behind every report of violence against foreign nationals are people who have been hurt, displaced or forced to leave homes and livelihoods they built. That human cost comes first, and nothing in this article is intended to reduce it to a commercial question.
It is also true that social tension does not stay contained. When it reaches the point of affecting relations between countries, it becomes part of the risk picture for any business with people, property, suppliers or customers connected to the communities and markets involved. This article looks at that business exposure in neutral, practical terms.
In this article
What has happened
On 11 September 2026, Nigeria’s National Assembly suspended all official visits to South Africa and participation in South African-hosted legislative activities, including conferences, seminars and parliamentary meetings, until further notice (Vanguard, 11 September 2026). The Assembly said it was particularly concerned by reports of Nigerians being killed, injured, displaced and forced to abandon businesses, investments and homes as a result of recurring attacks. It also stressed that the decision was not aimed at undermining the long-standing diplomatic and people-to-people relations between the two countries (Vanguard, 11 September 2026). Nigeria has so far returned 1,640 of its citizens from South Africa (Nairametrics, 11 September 2026).
The concern is not new in 2026. Human Rights Watch reported new waves of attacks and demonstrations targeting foreign nationals in Pretoria, Johannesburg and Durban in April and May, including attacks on foreign-owned shops (Human Rights Watch, 20 May 2026). The African Commission on Human and Peoples’ Rights issued a statement deploring xenophobic attacks and vigilante conduct against nationals of other African countries (African Commission on Human and Peoples’ Rights, 27 April 2026).
On 25 August 2026, President Cyril Ramaphosa told Parliament that those who break the law would be dealt with, that police were processing reports and evidence, and that government rejects xenophobia and Afrophobia and is addressing migration through lawful means and regional dialogue (SAnews, 25 August 2026).
Political risk is not only created by legislation
Political risk is often discussed in terms of government action: new legislation, expropriation, regulatory change or contract disputes with state counterparties. Our articles on two years of the GNU and political instability look at those channels.
Social tension is a different route to the same place. It does not need a change in law to affect a business. Unrest can disrupt trading in a neighbourhood, put employees at risk on their way to work, damage premises and stock, and shape how other countries, and their consumers, view businesses associated with South Africa. When it becomes a diplomatic matter, the exposure can reach well beyond the areas where incidents took place.
People come first
For most businesses, the most immediate exposure is their people. Many South African businesses employ, contract with or serve people from other African countries. During periods of tension, those employees and contractors may be targeted, may feel unsafe travelling to work or may need support for their families.
Businesses commonly look at how they communicate with staff, how they would respond to an incident near their premises or on a commuting route, and how operations continue if some employees cannot safely come to work. None of this is an insurance question first. It is a duty of care and a matter of treating people with dignity, and it shapes everything that follows.
Operations and property in South Africa
Where tension turns into public disorder, the direct business impacts are familiar from past unrest in South Africa:
damage to premises, stock and vehicles
looting of shops and informal trading sites
closure of trading areas while incidents are ongoing
disruption to deliveries, suppliers and customers in affected areas
Small and informal businesses are often the most exposed and the least likely to be insured, which is part of why these events are felt so deeply in affected communities.
Cross-border exposure and reputation
For South African businesses operating in other African markets, diplomatic strain adds a cross-border dimension. Reputation, government relationships, partner confidence and consumer sentiment in those markets can all be affected by events in South Africa.
There is recent precedent. In September 2019, following attacks on foreign nationals in South Africa, South African companies in Nigeria faced a backlash. Bloomberg reported that Shoprite stores were attacked in Lagos, MTN closed its Lagos offices after retaliatory attacks on some of its operations, and Pepkor closed 21 stores in Lagos and 7 in Lusaka, with one Lagos store looted and its supply chain disrupted (Bloomberg via Daily Maverick, 4 September 2019).
The current suspension applies to parliamentary engagement, and the Nigerian National Assembly has emphasised that it is not intended to undermine relations between the countries. The 2019 experience is a reminder, rather than a prediction, that tension in one country can surface as operational and reputational risk for businesses in another.
Where insurance fits
Insurance cannot address the human harm of these events, and it is not a substitute for safety planning. It does play a role in how businesses absorb the financial impact.
Property and income in South Africa. Standard property policies generally exclude riot, strike and public disorder. In South Africa these perils are covered through Sasria, which businesses arrange through their insurer or broker, usually alongside their commercial property insurance. Sasria also offers business interruption cover for loss of income following public disorder and civil disruption (Sasria, business interruption cover).
What insurance does not cover. Reputational harm, lost market share and the effect of diplomatic strain on business relationships are generally not insurable losses in themselves. They are managed through planning, communication and relationships.
Questions businesses are asking
Boards and business owners reviewing their exposure during periods of social tension are typically asking:
How are our employees and contractors supported and kept informed if tension rises near our sites or their communities?
Which of our sites, suppliers and trading areas have been affected by unrest before?
Is Sasria cover in place on every property schedule, and do the sums insured and business interruption cover reflect current values?
For operations in other African markets, does our political risk cover include political violence and forced abandonment, and are the insured countries up to date?
How would we communicate with partners, customers and staff in other countries if events in South Africa affected perceptions of our business?
About Berkley Risk
Berkley Risk is a specialist commercial insurance broker that works with South African businesses on political risk, property and cross-border exposures. If it would help to talk through how your current cover responds to these risks, our team is available.
Berkley Risk (Pty) Ltd is an authorised financial services provider (FSP #54407).
Frequently asked questions
How does anti-migrant violence create business risk?
It affects people first: employees, contractors, suppliers and customers who may be targeted or feel unsafe. It can also disrupt trading, damage property, strain relationships with partners in other countries and, when it becomes a diplomatic issue, affect how businesses associated with South Africa are perceived in other markets.
What did Nigeria’s National Assembly decide in September 2026?
On 11 September 2026, Nigeria’s National Assembly suspended all official visits to South Africa and participation in South African-hosted legislative activities until further notice, citing recurring attacks affecting Nigerians and other African nationals. It said the decision was not aimed at undermining the long-standing relations between the two countries.
Is damage from riots and public disorder in South Africa covered by insurance?
Damage caused by riot, public disorder and civil commotion in South Africa is covered through Sasria, which businesses arrange through their insurer or broker, usually alongside their property insurance. Sasria also offers business interruption cover for loss of income following these events. Standard property policies generally exclude these perils.
What does political risk insurance cover for operations outside South Africa?
Political risk insurance for cross-border operations can cover political violence, forced abandonment, expropriation, currency inconvertibility and contract frustration, depending on the policy wording and the country concerned.
Has social tension in South Africa affected South African businesses abroad before?
Yes. In September 2019, following attacks on foreign nationals in South Africa, South African companies in Nigeria faced a backlash. Bloomberg reported that Shoprite stores were attacked in Lagos, MTN closed its Lagos offices and Pepkor closed stores in Lagos and Lusaka.
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