July 17, 11:00

Immigrant outflow reveals skills shortage problem in South Africa

The announcement by a segment of the business community in eThekwini regarding the launch of a skills development program for South African citizens following the departure of foreign nationals should not be seen as cause for celebration.

Structural problems of the economy

On the contrary, it should be viewed as an unintentional exposure of one of South Africa's long-standing weaknesses—the maintenance of a cheap labor regime. This regime survived the transition to democracy despite three decades of state investment aimed at economic transformation and expanding employment opportunities.

The significance of this intervention lies not in the training program itself, but in the uncomfortable question it forces the nation to consider: why has the training of South African citizens suddenly become a priority thirty-two years after gaining democracy? If citizens can be trained today, why was this not done systematically over the last three decades while these sectors received significant state support and public resources?

This question cannot be resolved by viewing it through the narrow lens of immigration. It requires an analysis of political economy based on South Africa's historical development and the constant relationship between the State, capital, and labor. The renowned South African political scientist Professor Harold Wolpe best understood this connection. In his seminal work 'Thesis on Cheap Labour,' Wolpe showed that Apartheid was not merely a racial project, but an economic system intentionally created to ensure a continuous influx of cheap Black labour into South Africa's industrial and mining sectors.

The Bantustans performed a critically important economic function by reproducing the workforce and shifting the majority of social costs of maintaining workers away from employers. Capital accumulated wealth because wages remained artificially low, while African families and poor rural communities bore the costs of social reproduction. Wolpe's analysis was based on Karl Marx's theory of surplus value. Marx argued that profit arises from the difference between the value created by labour and the wages paid to workers; the greater this difference, the greater the accumulation of capital.

Thus, the pursuit of profit creates a constant incentive to minimize labour costs while maximizing productivity. It is precisely because of these contradictions that Marx concluded that the industrial working class would ultimately become the undertakers of capitalism, not only due to moral outrage, but because the very logic of capitalist accumulation constantly reproduces social and economic contradictions.

Democracy abolished the legal basis of Apartheid, but it did not automatically eliminate all structural elements of the political economy created by Apartheid. Although the Bantustans disappeared from the constitutional landscape, the search for vulnerable and inexpensive labour remains a persistent feature of some economic sectors. The composition of this workforce may have changed, but the economic logic identified by Wolpe continues to demand close study.

Therefore, the announcement in eThekwini must be viewed in a broader historical context. It raises legitimate questions about whether certain sectors have become overly dependent on vulnerable labour instead of consistent investment in the development of South African workers. If businesses now acknowledge that local workers can be trained, the question must be asked why these investments were not made long before the current situation.

The irony becomes even more striking when considering the extensive support provided by democratic governments to these sectors. Since 1994, billions of rands have been directed towards industrialization, tourism development, increasing production competitiveness, and enterprise development through clothing and textile support programs, industry master plans, tourism recovery initiatives, funding by the Industrial Development Corporation, training and education bodies, the Department of Trade, Industry and Competition, provincial development agencies, and numerous public-private partnerships.

The government consistently defined tourism, hospitality, manufacturing, clothing, textiles, and agro-processing as strategic sectors capable of generating employment, industrial expansion, and inclusive economic growth. An obvious question arises: have these significant state investments yielded the expected results in terms of employment? Have firms receiving state incentives invested sufficiently in workplace training, apprenticeships, and the employment of South African citizens? If not, what accountability mechanisms exist to ensure that state resources achieve their development goals?

These are not ideological questions; they are questions of public responsibility. The recent intervention by the 'March and March' movement, regardless of differing political views on the movement itself, has forced both the State and the private sector to confront the uncomfortable realities of market practices in the labour sphere. Thus, public attention has shifted from immigration to a deeper structural question about how South Africa organizes work, skills development, and participation in the labour market.

The discussion cannot be limited to eThekwini. Similar concerns have arisen in many urban centers and productive sectors. Agriculture, construction, hospitality, manufacturing, and parts of the textile industry have periodically drawn attention regarding labour practices and compliance with labour legislation. These sectors have also received significant state support, including infrastructure investment, export promotion, financing, tax incentives, and enterprise development programs. State support entails corresponding public obligations.

Therefore, this debate should not devolve into a confrontation between South Africans and foreigners. Such a simplified narrative would obscure the real structural problem. The Constitution of South Africa guarantees the dignity of every person, regardless of nationality. Labour exploitation cannot be deemed acceptable simply because the victims are migrants, nor can unemployment among South African citizens be ignored simply because it benefits businesses to use vulnerable labour.

The main issue lies in organizing labour markets, ensuring adherence to labour standards, and holding capital accountable within a constitutional democracy. The government must conduct a comprehensive assessment of how state support has been utilized in strategic economic sectors. Every firm receiving state incentives must demonstrate measurable commitments to local employment, accredited workplace training, compliance with labour laws, skills transfer, and sustainable economic development.

If investigations reveal labour law abuses or misuse of state incentives, managing the consequences must include appropriate financial penalties, clawback of incentives where legally permissible, and enhanced regulatory oversight. This is where the developing state assumes its historical responsibility. A developing state is not merely a distributor of incentives or subsidies; it possesses both the authority and the duty to discipline capital in pursuit of national development goals.

State resources cannot become tools for private accumulation detached from broader social responsibilities. Capital that benefits from state support must simultaneously contribute to job creation, productivity growth, technological development, skills development, and social transformation. Ultimately, the initiative in eThekwini represents more than just a municipal skills program; it has unintentionally highlighted one of the unfinished tasks of South Africa's democratic transition.

Thirty-two years after democracy, the country should not find that its own citizens require training for professions that have existed for decades. These investments should have been part of the democratic development project from the outset. If one lesson emerges from this episode, it is that South Africa's economic transformation remains incomplete. The task before the nation is not simply replacing one workforce with another, but building an economy whose competitiveness is based on productivity, innovation, skills, decent work, and human dignity, rather than the constant search for the cheapest available labour. This is the true mandate of a developing democratic state and the unfinished promise of South Africa's constitutional order.

iol.co.zaJuly 7, 15:39

Immigration Crisis in South Africa: Neglect, Protests, and a Call for Continental Unity

Foreign nationals were housed in camps near the Epping repatriation center in Cape Town because the closure of the facility left them without support.

Long-Term Migration Issues

South Africa has long ignored its border security. For over thirty years, the country has faced the problem of illegal immigration, forcing civil organizations to take responsibility for repatriating undocumented foreigners. This complex situation has led to criticism of South Africa at the continental level.

Societal and Governmental Reaction

By law, only government officials have the authority to enforce immigration legislation. Nevertheless, many citizens take to the streets in protest, expressing dissatisfaction with what they perceive as a crisis caused by the presence of illegal immigrants. Although vandalism is condemned, critics argue that the South African government should be held accountable for its insufficient approach over many years.

It is estimated that more than three million undocumented immigrants reside in the country due to porous borders. The government may have had the resources to deport these individuals for years, but its efforts have been inadequate given the scale of the problem, which is exacerbated by allegations of corruption in the police and the Department of Home Affairs. Only recently is it being observed that the crisis is beginning to be addressed with due urgency.

International Response and Appeals

Various nations have been forced to evacuate their citizens from South Africa under pressure from anti-immigration groups. While some countries struggle with their citizens stranded in transit camps, Ghana organized charter flights for the repatriation of its nationals. Furthermore, the West African nation advised its youth political groups to refrain from any retaliatory actions.

Recognizing the issue of illegal immigration, Ghana's Deputy Minister of Foreign Affairs, James Gyakye Kwesi, recently called on African countries to support South Africa in resolving this crisis. There are approximately 200 South African businesses and registered companies operating in Ghana. Conflict over this issue is likely to cause both countries more economic damage than benefit.

Economic Ties and the Continent's Future

Despite over 100 South African companies investing significant funds in Nigeria, the West African country threatened countermeasures against South Africans due to the consequences of immigration. Business proponents should not exchange their interests for human rights, but revenge is not the solution—much is at stake. It must be recognized that continued hostility will result in no winners.

In early 2026, South African investors invested about $1 billion in Nigeria. African governments must view the continental immigration crisis as a starting point, focusing collective efforts on finding solutions and determining necessary steps.

iol.co.zaJuly 5, 16:00

Migration trends in South Africa are transforming business, talent, and consumer markets

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.

Immigrant outflow reveals skills shortage problem in South Africa

Structural problems of the economy

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