South Africa is experiencing a fresh wave of anti-migrant protests, propelled by public frustration over high unemployment rates, crime, and prolonged economic stagnation.
However, economists warn that a mass exodus of foreign workers could severely disrupt the very businesses and jobs that protesters hope to safeguard.
While a national march on June 30 was mostly peaceful, building anti-migrant sentiment over recent months has prompted thousands of African migrants to flee the country due to fears of violence.
Experts caution that this departure could trigger severe labor shortages across key industries reliant on foreign labor, such as agriculture, construction, delivery services, and retail, while further undermining South Africa’s massive informal economy.
United Nations statistics indicate that approximately 2.6 million migrants resided in South Africa in 2024, representing about 5% of the total population.
Furthermore, data from the OECD and the International Labour Organisation (ILO) reveals that these workers generate roughly 9% of South Africa’s gross domestic product (GDP).
The retail industry is already feeling the impact of these protests.
Foreign-owned “spaza shops”, the small convenience stores operating out of shacks, garages, and shipping containers, serve as a cornerstone of the informal economy, providing vital business for wholesalers, landlords, and local workers.
Additionally, Sixty60, the online grocery delivery branch of the country’s largest food retailer, Shoprite Group, has experienced disruptions; company records show that less than 25% of its delivery drivers are South African citizens.
The anti-migrant movement has intensified alongside South Africa’s ongoing struggles with deep economic inequality and sluggish growth.
In June, the World Bank downgraded South Africa’s 2026 growth projection from 1.4% to 1%. Meanwhile, official government data places the unemployment rate at nearly one in three, leaving 8.1 million citizens without work.
Although these immense economic pressures have directed resentment toward foreign workers, research suggests a different reality.
An ILO study utilizing labor force surveys demonstrated that an increase in migrants within the workforce actually correlates with a rise in employment opportunities for native-born South Africans.
