Xenophobic Protests in South Africa Threaten Investment, Experts Warn

Rising Violence and Political Links

In South Africa, protests against irregular migration have turned increasingly violent in multiple cities, fueled by right-wing movements and vigilante groups demanding that undocumented migrants leave by June 30. Groups like "March and March" and "Operation Dudula" are at the forefront. Jo Vearey, co-director of the African Center for Migration & Society at the University of the Witwatersrand, links these groups to populist parties such as ActionSA and the MK Party of former President Jacob Zuma. She states that foreigners are being scapegoated for government failures as a strategy to gain political support.

Economic Contributions of Migrants

Despite public perception, migrants play a vital economic role. A 2025 Afrobarometer survey found that 69% of South Africans believe immigrants harm the economy, but research shows each migrant creates about two jobs. Migrants make up only about 4% of the population (65 million). Notable foreign investors include Zimbabwean telecoms entrepreneur Strive Masiyiwa's Cassava Technologies, which is partnering with Nvidia to build Africa's first AI factory; Angola's Sonangol; Mozambique's Matola Gas Company; and Nigeria's Dangote Group. These businesses contribute to taxes, trade, and employment.

Risk to Investment

Vearey warns the current protests are causing socioeconomic damage. Forced closures of foreign-owned businesses lead to job losses for South Africans and lost tax revenue. Regional trade is also disrupted. Major trade unions, including COSATU, have urged de-escalation, warning that removing foreign nationals will not solve structural problems. Aimee Noel Mbiyozo of the Institute for Security Studies notes that foreign-owned companies, both large and small, are fearful. Larger firms are watching the situation, and reputational damage may deter future investment. The violence echoes the deadly 2008 xenophobic attacks, raising concerns about South Africa's stability.