Anti-migrant protests risk economic blowback for South Africa: Economists

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)
We have recently deactivated our website's comment provider in favour of other channels of distribution and commentary. We encourage you to join the conversation on our stories via our Facebook, Twitter and other social media pages.
More from Peoples Gazette

Agriculture
FG tasks ECOWAS on leveraging financing strategies for agroecology
The federal government has urged stakeholders in the agriculture and finance sectors in the West Africa region to leverage financing strategies to enhance agroecology practices

Politics
Katsina youths pledge to deliver over 2 million votes to Atiku
“Katsina State is Atiku’s political base because it is his second home.”

Heading 2
INEC reprints ballot papers to include Osun SDP candidate’s name after court order
Mr Haruna said the development brought the number of political parties contesting the election to 15.

Education
Gov Idris distributes seven new 30-seater buses to tertiary institutions
He commended Mr Idris for his continued support for the education sector in the state.

World
War: Ukraine submits peace proposals to U.S. negotiators
Mr Zelensky did not disclose details of the proposals.

States
Lagos driver in court over alleged N250 million truck theft
The court adjourned the case until September 20 for further proceedings.

Uncategorized
Group advises Niger Delta youths to shun illegal oil bunkering, criminality
Mr Ogunseri said the occasion served as a reminder for young people to realise their potential.

States
Oyetola urges Osun APC members mobilise voters for Oyebamiji ahead of Saturday’s poll
The APC leader therefore called on party members to translate their support into votes.






