Violence erupted in the Ga-Sekgopo area after a foreign shop owner was found in possession of a mobile phone belonging to a local man who was killed three weeks ago.
Villagers demanded answers on how the shop owner got the man's phone.
Police said one of the alleged killers took the phone to the foreigner.
They didn’t know whether it was sold to him or was brought there to be fixed.
Violent protests erupted on Sunday with villagers sending all the foreigners packing and pushing them out of 11 villages in Sekgopo.
One of the shop owners says he has lost his stock and won’t regain the profit lost during the looting.
Other owners are worried that they are being made to pay for the sins of their fellow foreign nationals.
Police spokesperson Moatshe Ngoepe says police are patrolling the area.
In Soweto residents are expressing frustration at the effects of the evacuation of foreign shop owners after xenophobic attacks last month.
They say they have to walk further to do their shopping and prices in local stores are higher than the foreign owners were charging.