South Africa is facing growing economic and diplomatic challenges as anti-migrant protests continue to spread across parts of the country, disrupting businesses, reducing trade and forcing thousands of migrants to leave amid rising fears of violence.
The protests, led by the March and March movement, have intensified in recent months with campaigners demanding that undocumented migrants leave the country. Although the movement says it is targeting people without legal status, reports indicate that many African migrants with valid visas and work permits have also been caught up in the unrest.
According to official repatriation figures, more than 160,000 migrants have returned to their home countries with assistance from their governments since the protests escalated. Many others have reportedly left South Africa independently, relocated to safer communities or sent family members home while remaining behind to protect their livelihoods.
The movement has pledged to continue its campaign ahead of South Africa’s local government elections scheduled for 4 November, arguing that employment opportunities should be reserved for South African citizens. Organisers insist they will maintain pressure until undocumented migrants have left the country.
However, economists and business leaders warn that the protests are already damaging an economy that relies heavily on migrant labour and entrepreneurship.
South Africa is estimated to host around three million migrants, representing less than four percent of the country’s population. Many work in sectors facing persistent labour shortages, including retail, agriculture, manufacturing and wholesale trade.
One of the sectors hardest hit is the country’s network of spaza shops, small neighbourhood convenience stores that play a vital role in many communities. These businesses provide affordable food and household goods, extend credit to regular customers and support local supply chains linking wholesalers, transport companies and manufacturers.
Industry estimates suggest South Africa has between 150,000 and 200,000 spaza shops, contributing more than five percent of the country’s Gross Domestic Product (GDP) and supporting nearly three million jobs through direct and indirect economic activity.
Many of these businesses are owned by migrants from Somalia and Ethiopia, several of whom have reported attacks, looting and intimidation despite possessing valid immigration documents.
Some traders say they have been forced to close their businesses after receiving threats, while others have hired private security to protect their shops. There are also reports that landlords have been pressured to evict migrant tenants or risk having their properties targeted by vigilantes.
The impact is extending beyond small retailers. Wholesale businesses that supply hundreds of neighbourhood shops have reported declining sales as customers shut down operations or relocate. Business owners say uncertainty has slowed investment and disrupted local supply chains, putting both migrant-owned businesses and South African jobs at risk.
Cross-border trade has also suffered. Johannesburg’s informal commercial districts attract thousands of traders from neighbouring countries each year, generating hundreds of millions of dollars in economic activity. Bus operators serving regional trade routes report a sharp decline in passenger numbers as concerns over safety discourage travel to South Africa.
Urban development experts warn that recent enforcement actions against informal traders, combined with anti-migrant protests, risk undermining Johannesburg’s long-standing position as one of southern Africa’s leading commercial hubs.
Despite the economic concerns, anti-migrant sentiment continues to gain political attention as South Africa prepares for local elections. Analysts say migration has become an increasingly prominent issue in public debate, fuelled by high unemployment, slow economic growth and widespread frustration over public services.
South Africa continues to struggle with one of the world’s highest unemployment rates. More than 60 percent of young people aged 15 to 24 are unemployed, while unemployment among those aged 25 to 34 remains above 40 percent. Many experts argue these longstanding structural problems, rather than migration, are the primary drivers of economic hardship.
Business leaders also warn that restricting migrant employment could worsen labour shortages in industries already struggling to recruit skilled workers. Employers in manufacturing and agriculture say they often rely on migrant workers because of their technical expertise or willingness to take on physically demanding seasonal jobs that are difficult to fill locally.
Agricultural producers, particularly in KwaZulu-Natal’s sugar industry and the country’s fruit and vegetable sectors, report significant workforce losses following the protests. Some farmers say they have lost most of their experienced labour force, raising concerns about production levels and future harvests.
Economists further caution that growing hostility towards migrants could damage South Africa’s trade relationships across the continent. The country exports goods worth an estimated US$42 billion annually to other African nations, with regional markets accounting for nearly one-third of its total exports. Continued anti-migrant sentiment, they warn, could weaken diplomatic ties and discourage regional investment.
While supporters of the protests argue stronger immigration enforcement is necessary to combat crime and protect local jobs, critics maintain that migrants are increasingly being used as scapegoats for deeper economic and governance challenges that have accumulated over decades.
As political parties prepare for November’s elections, observers expect migration to remain one of South Africa’s most contentious campaign issues. However, many economists argue that addressing unemployment, improving education, strengthening economic growth and creating more opportunities for all workers will ultimately have a greater impact than blaming migrants for the country’s economic difficulties.