South African companies operating across Africa are facing increasing pressure as anti-immigrant protests in the continent's largest economy stoke diplomatic tensions and calls for action against their businesses.
Mobile-phone operator MTN has sent a senior executive to meet officials in Ghana and is supporting Nigerians who have returned from South Africa, while Standard Bank Group, the continent's biggest lender, says it is closely monitoring developments.
Gold Fields, which operates the Tarkwa gold mine in Ghana, is operating in a difficult policy environment as authorities push for greater local involvement in the mining sector and now risks coming under further political pressure.
More than 2,700 people from Ghana, Nigeria, Mozambique and Malawi have been helped to return home from South Africa amid fears that anti-immigrant protests could escalate, with many already attacked and their homes or businesses looted. Meanwhile, 7,400 undocumented immigrants have been arrested for violating immigration laws in the past month, according to the Home Ministry, bringing the number of people detained so far this year to more than 40,000.
The growing backlash against anti-immigrant protests reflects the risks South African corporations face with continent-wide operations. The dispute with Ghana's foreign minister has deepened in recent days Samuel Okudzeto Ablakwa Calls on the African Union to debate the treatment of African migrants in South Africa.
Foreign Minister of Nigeria Bianca Odumegwu-Ojukwu Indicated that the government is considering possible measures against South Africa following the repatriation of Nigerian citizens. And in Ghana, activists are pressuring authorities to take a tougher stance against South African companies operating in the country.
The risks are particularly acute for South African companies whose growth depends on operations beyond their home market. MTN's Nigerian business is its largest, Standard Bank is present in more than a dozen African countries and Gold Fields' Tarkwa mine in Ghana is one of its most important assets.
Ebenezer AsanteMTN's Senior Vice President of Markets has been sent to meet Ghana's Ministers of Foreign Affairs and Trade. In Nigeria, the company is working with authorities to support 1,350 citizens who returned from South Africa on a charter flight last week, providing them with SIM cards, data and cash grants.
“We have not seen a significant impact on our business, but we are very sensitive in markets such as Nigeria and Ghana,” the chief executive said. Ralph Mupita Said in an interview.
“MTN makes less than 20% of our earnings in South Africa and 80% of our earnings elsewhere,” he said. “We were born in South Africa, but now we are a pan-African organisation.” He said the company continues to engage with governments on a complex issue that requires a comprehensive regional solution.
Standard Bank is “focused on the safety and well-being of our employees and customers, as well as the uninterrupted delivery of services through our operations,” the lender said in an emailed response.
For Gold Fields, the current tension arises against the backdrop of the changing political landscape in Ghana. The government has indicated that mining lease renewals will no longer be automatic and has called for deeper local involvement in the sector, which would lead to increased scrutiny of foreign operators.
Although the debate predates the current protests, it risks adding momentum to calls for a tougher stance on foreign-owned institutions.
“We are currently engaged in the process of renewing the Tarkwa mining lease,” Gold Fields said in response to questions, adding that a decision is expected by the end of 2026. “Discussions with the Government of Ghana in this regard remain constructive and are taking place through appropriate channels.”
In Ghana, a group called Ghana First Alliance presented a petition to the presidency last week calling for stronger action to protect the country's citizens. He wants more scrutiny of South African businesses and its organizer Pretoria to be held accountable Nana Otu Darko Said.
South Africa's relative wealth has long made it a destination for migrants from across the continent. The GDP per capita is about $7,500, while in Nigeria it is about $1,080. The country is home to approximately 3 million immigrants, the majority of whom come from other places in Africa.
The latest demonstrations have been fueled by perceptions that foreign nationals contribute to unemployment, crime and pressure on public services.
Those concerns periodically escalated into violence, particularly in 2008 when xenophobic attacks killed more than 60 people and displaced some 50,000.
“Brand is being damaged,” Justice Minister Mmamoloko Kubayi he told reporters on Sunday when asked about the impact of the latest violence on South Africa's international reputation. “We can't lie about this.”