South Africa is witnessing a fresh surge in anti-migrant protests, fueled by widespread frustration over high unemployment rates, rising crime levels, and prolonged economic stagnation. However, experts have raised concerns that the potential departure of thousands of foreign workers could undermine the very industries and job opportunities that the protesters claim to want to protect.
Anti-migrant sentiment has been growing steadily over the past several months, reaching a peak with a nationwide march on June 30th. While the demonstrations remained largely peaceful, the fear of violence has already prompted many African migrants to leave the country. This exodus may lead to significant labor shortages in key sectors that depend heavily on foreign workers, including construction, agriculture, delivery services, and local retail shops. It could also further weaken South Africa’s already struggling informal economy.
According to United Nations data, approximately 2.6 million migrants were residing in South Africa in 2024, accounting for roughly 5% of the population. According to estimates from the OECD and the International Labour Organisation, these migrants contribute around 9% to South Africa’s GDP. Their presence plays a crucial role in sustaining various parts of the economy.
The ongoing protests are already causing disruptions in the retail sector. Foreign-owned “spaza shops,” which are small informal convenience stores typically operated from shacks, garages, or shipping containers, serve as a vital part of the informal economy. These shops support wholesalers, landlords, and local workers alike.
Sixty60, the online grocery delivery service of South Africa’s largest food retailer, Shoprite Group, has also been affected. Company data indicates that fewer than one in four of its drivers are South African. This dependency on foreign labor highlights the broader impact of the anti-migrant movement on essential services.
The anti-migrant movement has been gaining momentum for years, as South Africa continues to grapple with slow economic growth and deep-rooted inequality. In June, the World Bank reduced its 2026 growth forecast for the country from 1.4% to just 1%. At the same time, official statistics reveal that nearly one in three people is unemployed, leaving 8.1 million South Africans without jobs.
These economic pressures have intensified resentment toward migrants. However, an ILO study based on labor force surveys found that when more migrants enter the workforce, employment for South African-born workers tends to increase as well. This suggests that the presence of foreign workers may actually benefit the local labor market, contrary to the perceptions driving the current protests.
Despite this, the anti-migrant sentiment remains strong, driven by a combination of economic hardship, political rhetoric, and social tensions. The situation underscores the complex relationship between migration, labor markets, and economic stability in South Africa.
As the country faces these challenges, policymakers and economists are urging a more nuanced approach to addressing both the concerns of local communities and the broader economic implications of mass migration. The outcome of this ongoing debate could have far-reaching consequences for South Africa’s future.
