Migration in South Africa: A Love Story and the Need for Economic Opportunities

Refugees in Durban are forced to live on the streets, striving to find protection and shelter under extremely difficult circumstances. For almost two months, they have been camped on sidewalks near the Department of Home Affairs Refugee Reception Centre at Che Guevara (Moor) Road, huddled together to withstand the cold and the threat of violence.

Origins and Living Conditions

These individuals come from various countries, including the Democratic Republic of Congo (DRC), Burundi, Ghana, Sudan, Tanzania, and Uganda; some Malawian citizens later left the area. The refugees attempted to seek protection but were expelled by Durban police under rubber bullet fire and did not receive assistance at the Diakonia Centre for two days. Subsequently, they were taken to the Department of Home Affairs, where checks revealed that only two out of 457 people were undocumented.

Refugee Stories

Princess Adjei, 33, originally from Ghana, arrived in South Africa as an infant and grew up here. She recounted being attacked both at home and at her workplace. Adjei stated that most of her family had left, leaving her with her son. Her grandmother, who lived in South Africa, returned home but passed away after watching the events on television.

Adjei lost all her belongings in a beauty salon she owned in the Industrial Area after a group robbed it, leading to the closure of her business. She has been unemployed for two months. She also mentioned that after the Etkutwini municipality mayor, Cyril Shaba, advised them to return to their communities, they did so, but were attacked again, forcing them back onto the streets.

Life on the street proved difficult and unsafe, as it included children, pregnant women, and elderly women. Adjei noted that people fall ill daily but cannot access hospitals because they are refused admission, and children do not attend school due to refusal of enrollment.

Integration Challenges

She explained that many arrived in South Africa fleeing wars in their home countries, making them refugees. Upon arrival, they were issued documents allowing them to stay in the country. Children among the refugees face daily problems such as illness and lack of access to education. Adjei emphasized that all of them are unemployed, and since they have no place, they cannot pay rent, forcing them to sleep together on the street. She added that the number of such people is constantly growing. Even at night, in the rain, they sleep pressed closely together.

Adjei mentioned that a group tried to attack them on June 30th, but private security and the police helped protect them by blocking access. Leanne Sefu, 25, from the DRC, arrived in South Africa at the age of three. Two months ago, her landlord evicted her and her two-year-old daughter from South Beach. Sefu stated that life on the streets is hard due to constant illnesses, such as severe flu from sleeping in the cold.

She also shared that despite having documents permitting her to work and study, she cannot find employment in South African companies because she is perceived as a foreigner. Sefu noted that even within the community, people tell her they are unwanted, and she is turned away everywhere.

Calls to Action

Refugees from various African nations are uniting in the fight for safety and a better future. Bishop Raphael, one of the leaders, expressed bewilderment over how the government is handling the issue of migrants and refugees. He stated that they are refugees who came here seeking safety because their countries failed to provide them protection. Raphael noted that the government must act in conjunction with UNHCR, as refugees fall under the umbrella of the 1951 Refugee Convention, and currently, people do not trust the South African government, trusting only UNHCR.

Raphael reported that there were initially about 630 people, but the number has decreased to approximately 183. However, since June 28th, people have started flocking there from all corners (Bizanah, Emanzimtoti, North Coast, South Coast) in search of safety.

A new analysis shows that migration processes in South Africa are fundamentally changing the country's economy, creating new opportunities for the business sector. The study identified three simultaneous trends affecting the labor market, consumer demand, and investment decisions.

Key Migration Trends

According to data from the analytical company Eighty20, South Africa is experiencing a combination of internal labor flows from regions, continued emigration of skilled professionals, and large-scale internal migration towards major economic centers. These changes affect all aspects of company operations—from staff retention to retail strategies and long-term planning.

Political and Statistical Context

These findings emerge against a backdrop of intense focus on migration issues following President Cyril Ramaphosa's recent address, in which he acknowledged shortcomings in immigration management, condemning xenophobia, vigilantism, and attempts by private groups to control foreigners. Simultaneously, the anti-immigration movement 'March' is increasing pressure through planned nationwide protests against undocumented migrants.

Eighty20 believes that the presented data offers a more balanced view of how migration shapes the economy. Andre Fulton, Director of Eighty20, noted: 'South Africa is being transformed by multiple migratory forces, each influencing business decisions.' He added that regardless of whether highly skilled professionals leave the country, regional workers arrive, or millions move toward opportunities on city outskirts, companies that correctly read these signals will be where the markets and talent are.

Data Challenges and Demographics

One of the main obstacles in studying migration is the lack of reliable official data. The Department of Home Affairs has not published immigration statistics since 2015, and emigration estimates compiled by Statistics South Africa are based on models rather than actual departure records. Despite difficulties in measuring illegal migration, as many foreigners avoid official surveys, the available data paints a clear picture of South Africa's changing population.

According to the 2022 census, there are 2.4 million immigrants residing in the country, while the Income and Expenditure Index estimate for 2022 and 2023 exceeds three million people, accounting for 5.1% of the population. Nearly two-thirds of immigrants originate from Commonwealth countries of South Africa. Zimbabwe accounts for almost half of the foreign population registered in the 2022 census, followed by Mozambique, Lesotho, Malawi, and the United Kingdom. Most immigrants are working-age men, concentrated in Gauteng and the Western Cape.

Economic Consequences of Brain Drain

Although immigration often dominates political discussions, Eighty20 argues that the outflow of skilled South Africans has even more serious economic consequences. Data from the International Organization for Migration (IOM), updated as of mid-2024, shows that just over one million South African citizens now live abroad, compared to less than 300,000 in 1990. The main destinations are Australia, the UK, the USA, New Zealand, and Germany.

The main problem is not so much the number of those leaving, but their qualifications. The study found that the highest-income taxpayers in the country contribute disproportionately to state revenue, meaning even a small loss of skilled professionals can have significant fiscal and economic consequences. In healthcare, for example, OECD data indicates that over 23,400 South African medical professionals work in the UK, Australia, New Zealand, and the USA, leaving numerous vacancies in the public sector unfilled.

Internal Migration and Urbanization

The desire to emigrate is also common among higher-income households. A BrandMapp study found that about 27% of South Africans earning over R10,000 per month consider emigration likely or very likely, and this figure has remained virtually unchanged since 2021. At the same time, millions of South Africans are moving within the country in search of work and better opportunities.

Statistics South Africa estimates that 9.1 million people, roughly one in seven South Africans, now live in a province different from where they were born. This migration pattern consistently points towards the country's main economic hubs. Gauteng accounts for 38% of registered taxpayers and contributes 47% of income tax, despite housing only a quarter of the population. It is projected that the province will gain 1.4 million net new migrants between 2021 and 2026, while the Western Cape expects to attract nearly half a million. An additional study by Wise Move, analyzing nearly 6,000 interprovincial household moves, showed that while movements from the Western Cape to Gauteng sharply increased, the Western Cape remained the strongest net recipient of migrants in 2025, and Cape Town continued to attract residents seeking lifestyle advantages.

Implications for Business and Risks

Urbanization is accelerating: South Africa's urban population grew from approximately 34.3 million in 2013 to 40.2 million in 2023. Much of this growth is occurring not in city centers, but on the peripheries of megacities, including informal settlements, backyards settlements, and suburban communities.

Eighty20 believes that these demographic shifts have three key implications for businesses. Firstly, it is competition for skilled workers, requiring employers to strengthen retention strategies, conduct international salary comparisons, and invest more heavily in graduate development. Secondly, it is the emergence of new consumer markets. As population growth concentrates in suburban areas, retailers and service providers need to revise expansion strategies to serve these rapidly growing zones. The head of marketing at one of South Africa's fastest-growing clothing retailers emphasized: 'The biggest opportunities for retail growth lie in township and suburban markets, where proximity, value, and relevance are most important. This allows us to engage with a larger number of customers, support local economic ecosystems, and become a trusted part of the communities we serve.'

Finally, Eighty20 warned that xenophobic violence creates growing operational and reputational risks for businesses, including supply chain disruptions, damage to employer brand, and reduced investor confidence. The company also noted that much of the political tension surrounding migration reflects deeper domestic issues, such as unemployment, housing shortages, and poor quality of service delivery, rather than migration itself.