Economists warned on Friday that the departure of foreign workers in South Africa could hurt the labour market.

Frustrations over unemployment, crime and years of weak growth are the driving force behind South Africa’s anti-migrant protests, the economist noted.

However, they warn that the departure of thousands of foreign workers could end up hurting the ‌very businesses and labour markets that anti-migrant campaigners say they are trying to protect.

Anti-migrant sentiment has surged in recent months, culminating in a nationwide march on June 30. Although the protests were largely peaceful, fears of violence have prompted thousands of African migrants to leave South Africa.

Their departure could create labour shortages in businesses that have long relied on foreign workers—from construction sites and farms to delivery services and corner shops—while also undermining the country’s vast informal economy.

Mpho Lenoke, a lecturer at North-West University, said, “Migrants typically find work in sectors where vacancies are difficult to fill, including farming, construction, hospitality, retail, transport and the informal sector. Many foreign nationals are starting businesses that employ South Africans and bring competition, which is good for consumers. International experience suggests that restrictions on migrant labour often have unintended economic consequences.”

The protests have already disrupted parts of the retail sector.

Foreign-owned spaza shops, informal convenience stores that operate from makeshift stalls, garages or shipping containers, are a key feature of South Africa’s informal economy, supporting wholesalers, landlords and local employees.

Sixty60, the grocery delivery platform of Africa’s largest food retailer, Shoprite Group, faced disruptions during the latest protests. Company data shows fewer than a quarter of its drivers were South African.

According to UN data, some 2.6 million migrants called South Africa home in 2024, around 5 per cent of the population.

While recent data on their economic contribution are limited, OECD-ILO estimates from 2018, based on 2010 modelling, put their GDP contribution at 9 per cent.

(Reuters/NAN)