South Africa has seen a surge in anti-migrant protests, driven by frustrations over unemployment, crime, and weak economic growth. However, economists warn that the departure of thousands of foreign workers could end up hurting the very businesses and labor markets that anti-migrant campaigners say they are trying to protect.

Economic Impact

The protests have already caused disruption in parts of the retail sector, with foreign-owned spaza shops, which are a key feature of South Africa’s informal economy, being affected. The grocery delivery platform Sixty60, which is owned by the Shoprite Group, faced disruptions during the latest protests, with company data showing that fewer than a quarter of its drivers were South African.

Migrants typically find work in sectors where vacancies are difficult to fill, including farming, construction, hospitality, retail, transport, and the informal sector. According to U.N. data, some 2.6 million migrants called South Africa their home in 2024, around 5% of the population. While recent data on their economic contribution is limited, OECD-ILO estimates from 2018 based on 2010 modeling put their GDP contribution at 9%.

Consequences of Protests

Protests can 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. 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.

Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.