Xenophobia has no place in a democratic South Africa, African National Congress president Jacob Zuma said on Thursday.

As the chancellor of the University of Zululand, Zuma was addressing graduates and guests at the university's graduation ceremony.

"Alexandra today, tomorrow it may be another place... foreigners have to be treated properly," he said.

He was responding to the attacks on foreigners by residents of Alexandra who went on a rampage vandalising property they believed belonged to foreign nationals.

Two people died as a result and scores of others were left homeless.

"Our people should avoid taking their frustrations out on immigrants," said Zuma.

He stressed that issues dealing with criminals must be left in the hands of government.

He said people needed to obey the rule of law and not take matters into their own hands.

Not all foreigners, he said, were in South Africa illegally.

Speaking on skills shortages, Zuma said he hoped graduates would do research to help government with new ideas on how to solve its problems.

"There are many opportunities in South Africa for skilled professionals... there is no need for you to move to another country, especially a developed one. South Africa needs you," said Zuma.

He also stressed that the country had lost a large amount or nurses and teachers to other countries as these professionals sought greener pastures.

He said government was working on improving salaries and working conditions of these professionals.

"We have a constitution that guarantees human rights and the kind of society we envisage. We seek to heal the divisions of the past... and work on building a better country."

Zuma also stressed that a long term approach was required to "help our neighbours become politically stable.

"We should work together... to contribute and create a better Africa and find long term solutions to problems we face," he said.

Zuma stressed that South Africa needed to advance not only economically but socially.

Sapa