South Africa is seeing a new wave of anti-immigrant protests, driven by anger over unemployment, crime and years of weak economic growth. But economists warn that if thousands of foreign workers leave, it could harm the businesses and jobs that protesters say they want to protect.
Anti-immigrant sentiment has been rising for months, culminating in a national march on June 30. The demonstrations were largely peaceful, but fears of violence have already forced thousands of African immigrants to leave the country.
Their departure could lead to labor shortages in sectors that rely heavily on foreign workers – from construction and agriculture to delivery services and local shops – and would further weaken South Africa's huge informal economy.
UN data shows that about 2.6 million migrants were living in South Africa in 2024 – about 5% of the population. OECD and International Labor Organization estimates suggest they contribute about 9% of South Africa's GDP.
The protests are already disrupting parts of the retail sector.
Foreign-owned “spaza shops” – small informal convenience stores often run out of shacks, garages or shipping containers – are the backbone of the informal economy, supporting wholesalers, landlords and local workers.
Sixty60, the online grocery delivery arm of Shoprite Group, South Africa's largest food retailer, is also affected. Company data shows less than one in four of its drivers is South African.
The anti-immigrant movement has been going on for years, as South Africa grapples with slow growth and deep economic inequality.
In June, the World Bank cut its 2026 growth forecast for South Africa to 1% from 1.4%. At the same time, official figures show that almost one in three people are unemployed, leaving 8.1 million South Africans unemployed.
These pressures have increased resentment towards migrants. Yet an ILO study based on labor force surveys found that when more migrants join the workforce, employment for South African-born workers also increases.