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Mitchells Plain residents told the Cape Times the reason for Thursday's attacks was that some foreigners had refused to pay "protection money" to gangs.
On Wednesday, foreign-owned spaza shops were also petrol-bombed and looted in Valhalla Park, Bishop Lavis.
Property owners were apparently afraid to let space to foreigners for fear their own houses would be targeted.
Shopkeeper Ahmed Ibrahim-Abram told the newspaper he had only been in the country for three months and had been warned of violence against foreigners.
"I never thought they could attempt to kill us with fire."
