‘Nothing to fear’ as police vow to get a handle on anti-immigrant protests

South Africa’s National Joint Operational and Intelligence Structure (NatJoints) has issued a final appeal for calm and stability, as the country’s security cluster doubles down on efforts to avert mayhem on Tuesday, as the “30 June deadline” for ‘anti-foreigner mobilisation’ arrives .

Planned demonstrations in parts of the country are set to intensify during the day, with Gauteng and KwaZulu-Natal among the provinces expected to see the highest levels of activity.

Extra law enforcement has however been deployed across all nine provinces.

Read:
SA braces for anti-immigrant shutdown on 30 June
Protest is a right, but also a responsibility – Ramaphosa

During a late-night media briefing on Monday, the security cluster assured the public that sufficient measures are in place to prevent a repeat of the July 2021 unrest, which left at least 350 people dead and caused an estimated R50 billion in damage.

“Contingency plans have been tested. There will be no security vacuum,” said Deputy National Commissioner Tebello Mosikili, adding that it will be a “normal working day”.

“Anyone who crosses that line must expect the full and immediate consequence of the law.”

Weekend arrests

Mosikili said four people, a group of March and March protestors, were arrested at the weekend and are in custody on charges of public violence and house robbery.

It is understood they entered a home in Rosettenville, Johannesburg, where a Congolese family were residing and allegedly harassed them.

More than 100 incidents linked to anti-foreigner sentiment have been registered since the start of March, with 195 suspects arrested. KZN has recorded the highest number of cases to date.

Mosikili said critical infrastructure is receiving enhanced protection – this includes national key points, transport routes, ports of entry, airports, healthcare facilities, shopping centres and other strategic sites.

“There’s nothing to fear. Law enforcement is in control. Law enforcement is ready,” National Police spokesperson Athlenda Mathe said, closing off the media briefing.

The expanded security deployment is expected to cost about R600 million.

Insurance industry assessing the situation

South Africa’s state-owned special risk insurer Sasria has taken a wait-and-see approach to the planned demonstrations, as security analysts remain divided over the risk of xenophobic violence.

The protests stem from repeated calls for the South African government to address the crisis of undocumented immigrants, which some lobby groups have accused of putting undue pressure on the country’s already stretched resources.

While law enforcement is set to be on high alert to quell rising tensions, it remains to be seen if the situation will escalate into violence and damage, especially in key business hubs.

Read/listen: Business mobilises security support ahead of anti-foreigner protests

Sasria said it has not observed any unusual rise in enquiries or policy uptake attributable to the current matter, with business volumes remaining broadly consistent with normal market activity.

“In terms of preparedness, we continuously review our operational readiness as part of our ordinary business processes,” the insurer’s executive manager for stakeholder management, Muzi Dladla told Moneyweb in a written statement.

He said Sasria does not undertake preparations in response to a single planned event, but continuously assesses its systems to ensure it can respond should insured events occur.

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“This includes intelligence sharing amongst the private sector, Sasria and the state,” he added.

He would not be drawn to comment on security intelligence, speculate on potential outcomes, or identify specific sectors or regions that may or may not be affected by future events.

The insurer covers damages arising from public disorder, labour unrest and terrorism. These are risks commercial companies are largely unwilling to protect against.

Sasria learns its lesson

In the aftermath of the 2021 riots, Sasria had to pay out about R32 billion and turned to the state for R22 billion to meet its obligations.

Since then, Dladla said Sasria has significantly strengthened its financial resilience, risk-bearing capacity and operational readiness.

This includes continued growth in its capital position, enhancements to its reinsurance programme and improvements to its operational and claims-handling capabilities.

“July 2021 provided valuable lessons for both Sasria and the broader insurance industry. Since then, we have strengthened our operational, claims and financial capabilities, enhanced coordination across the insurance value chain and continued to refine our underwriting, capital management and risk assessment frameworks,” he said.

“The broader lesson is that resilience depends not only on Sasria’s financial capacity, but also on preparedness, partnership, coordinated response and the conscience of society.”

Asked if there are concerns that another major civil unrest event could affect Sasria’s reserves, investment portfolio or require additional government support, Dlala told Moneyweb he would rather not speculate on hypothetical scenarios, except that maintaining financial resilience remains a core part of Sasria’s mandate.

He called on firms, especially retailers, logistics companies and small businesses, to ensure that they understand the scope of their insurance cover and to engage with their insurer or broker if they require clarification on their policies.

Read: Freight firms prepare for anti-migrant protests

“Our hope is always that public gatherings take place peacefully and within the framework of the law, without disruption to businesses, livelihoods or communities,” Dlala said.

Sasria relaunches R500m Wrap Cover to shield businesses

Earlier this year, Sasria relaunched its Wrap Cover, restoring what it describes as a critical layer of insurance capacity for large corporates facing escalating risks linked to civil commotion, riots, strikes, public disorder and terrorism.

Large corporations, including manufacturers, retailers, and logistics operators, remain among the most exposed to risks from political violence and unrest.

The product returns to the market nearly five years after it was withdrawn following the July 2021 unrest, which fundamentally reshaped the global political violence insurance market.

The relaunched Wrap Cover includes:

• Excess protection above Sasria’s R500 million primary coupon;
• A limit of R500 million, reduced from pre-2021 levels;
• Reinsurance arrangements aligned with prudential requirements; and
• Dedicated corporate underwriting and strengthened governance oversight.