COLLEEN GOKO and KOPANO GUMBI, of Reuters, report in the wake of this week’s protests…

Johannesburg, South Africa
Reuters

Frustrations over unemployment, crime and years of weak growth are driving South Africa’s anti-migrant protests. But economists 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 30th June. Although the protests were largely peaceful, fears of violence have prompted thousands of African migrants to leave South Africa.


People march as anti-immigrant protesters go door-to-door in search of undocumented foreign nationals to take them to the police, after an unofficial June 30 deadline set by anti-immigrant groups for undocumented migrants to leave the country had passed, in Alexandra township, South Africa, on 9th July, 2026. PICTURE: Reuters/Oupa Nkosi

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.

“Migrants typically find work in sectors where vacancies are difficult to fill, including farming, construction, hospitality, retail, transport and the informal sector.”

– Mpho Lenoke, a lecturer at North-West University

“Migrants typically find work in sectors where vacancies are difficult to fill, including farming, construction, hospitality, retail, transport and the informal sector,” Mpho Lenoke, a lecturer at North-West University, said.

According to UN data, some 2.6 million migrants called South Africa their home in 2024 – around five per cent of the population. While recent data on their economic contribution is limited, OECD-ILO estimates from 2018 based on 2010 modelling put their GDP contribution at nine per cent.

“Many foreign nationals are starting businesses that employ South Africans and bring competition, which is good for consumers,” said Lenoke. “International experience suggests that restrictions on migrant labour often have unintended economic consequences.”

The protests have already caused disruption in parts of the retail sector.


Anti-immigrant protesters march after an unofficial 30th June deadline set by anti-immigrant groups for undocumented migrants to leave the country had passed, in Johannesburg, South Africa, on 9th July, 2026. PICTURE: Reuters/Oupa Nkosi

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.

South Africa’s anti-migrant movement has been building for years as the country grapples with weak growth.

The World Bank in June cut its 2026 growth forecast for South Africa to one per cent from 1.4 per cent, while Statistics South Africa reported an unemployment rate of nearly one third in the first quarter, leaving 8.1 million people without work.

Those conditions have helped fuel resentment towards migrants. However, a study by the UN’s International Labour Organization (ILO) using labour force survey data found that as immigrant participation in the workforce increases, employment opportunities for South African-born workers also rise.

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Protests can also disrupt economic activity through looting and business closures, said Susanna Deetlefs of ACLED.

“Supply chains are disrupted, jobs are lost, and access to goods and services is curtailed when tensions escalate,” she said.


A police officer speaks with a demonstrator as residents gather and go door-to-door searching for undocumented foreign nationals to hand over to police, after an unofficial 30th June deadline set by anti-immigration groups for undocumented migrants to leave the country expired, in Alexandra township, South Africa, on 9th July, 2026. PICTURE: Reuters/Oupa Nkosi

Investors have so far reacted calmly, but say the protests add a new risk factor.

“It is a significant social problem in South Africa that investors keep hearing about, but they actually haven’t seen an actual real-life impact of it,” said Kaan Nazli, emerging markets debt portfolio manager at Neuberger Berman. “Now, with these protests, this is a risk.”

The stakes extend beyond South Africa, the region’s main source of remittances and largest host of working-age migrants, according to data from the ILO.

A joint FinMark Trust and South African Reserve Bank report found remittance outflows more than tripled between 2016 and 2024 to more than 19 billion rand ($US1.16 billion) in 2024.

Nearly 90 per cent of transfers to southern Africa went to Lesotho, Malawi, Mozambique and Zimbabwe, with Zimbabwe receiving more than 60 per cent of the total.

– additional reporting by NQOBILE DLUDLA