Is xenophobia in South Africa risking investment?
Vigilante groups and right-wing populist forces are stoking anti-immigrant sentiment and demanding that they leave the country by June 30. Experts fear serious economic implications
Vigilante groups and right-wing populist forces are stoking anti-immigrant sentiment and demanding that they leave the country by June 30. Experts fear serious economic implications for the country and the region. In South Africa, hostility toward foreigners has flared repeatedly for decades. Now, protests against irregular migration have turned increasingly violent in multiple cities, driven by right-wing movements and vigilante groups demanding that undocumented migrants leave by June 30. Fears of escalation are rising. Jo Veary, co-director of the African Center for Migration & Society at the University of the Witwatersrand, links radical protest groups to right-wing populist parties such as ActionSA, which she says are backing them. Groups like "March and March" and "Operation Dudula" are central. Veary also points to ties with former President Jacob Zuma's MK Party. "They blame foreign residents for the shortcomings in the country's social services. Ultimately, it's about gaining political support and votes in the elections," Veary told DW. Xenophobia in South Africa: Who’s really paying the price? To view this video please enable JavaScript, and consider upgrading to a web browser that supports HTML5 video With local elections due in November 2026, tensions are high.
"What we are currently witnessing is a government crisis in South Africa, in which foreigners are being made scapegoats and held responsible for the state's failure to fulfill its duties and promises," she stated, highlighting inequality and unemployment. Yet migrants play a significant economic role. Foreign investors and entrepreneurs contribute to jobs, trade and industry. Zimbabwean telecoms entrepreneur Strive Masiyiwa's Cassava Technologies is partnering with Nvidia to build Africa's first Artificial Intelligence (AI) factory. Angola's state-run oil giant Sonangol, Mozambique's Matola Gas Company and Nigeria's Dangote Groupare also active across energy and manufacturing. Migrants create jobs for South Africans Many South Africans benefit from these businesses. Still, a 2025 Afrobarometer survey found that 69% believe immigrants harm the economy, despite estimates that each migrant creates about two jobs. "Even if all foreigners were deported from the country—they make up only about 4% of South Africa's total population (65 million)—this would not suddenly lead to job creation or solve these larger structural problems for which the South African government is responsible," Vearey said. She warned that current protests are already causing socioeconomic damage.
The BriefWire