Protesters took to the streets in a national day of action on June 30 to demand the removal of undocumented migrants from South Africa. The ultimatum, which expires on June 30, 2026, is fuelled by strained public services, fierce contestation for jobs, and persistent crime that has made daily life hazardous for millions of South Africans.

The seemingly unstoppable gale of mass grievance now threatens serious economic and reputational damage to South Africa's standing in the region and on the continent. Prior waves of attacks against migrants resulted in consumer boycotts and retaliation against South African companies, including MTN and Shoprite operations in several African countries.

The Group Chair of MTN, a leading pan-African company, Mcebisi Jonas, has warned that South Africa cannot afford to alienate itself from the continent. Dr Nkosazana Dlamini-Zuma, a former Chairperson of the African Union and South African Cabinet Minister, posed a crucial question: if every African migrant left tomorrow, would unemployment and poverty disappear?

Dlamini-Zuma was clear that we need to fix our own home and our own economy. Former President Thabo Mbeki made a disturbing claim, asserting that there is a deliberate attempt to isolate South Africa from the rest of the continent. These protests are not organic, according to Mbeki.

The Southern African Development Community is a powerhouse with 16 member states, a population of over 380 million, and a total nominal GDP of close to $900 billion. South African financial, retail, mining, logistics, manufacturing, and telecommunications businesses have a powerful footprint in the region.

Hostility towards African nationals is costly, not only in human lives lost but also economically and diplomatically. Critical cross-border supply chains and investments may become collateral damage in this war of rage. Companies in retail, logistics, and manufacturing which depend on regional integration for scale could be badly affected.

Continentally, the reputational and economic stakes are high. The continent accounts for approximately 30% of South Africa's export market, creating much-needed jobs and boosting industrial capacity. South Africa's share of the market could plummet if this climate of threats, hostility, and violence continues.

Africa remains South Africa's biggest tourism market. South African Tourism has confirmed cancellations from several African countries following the recent protests and attacks. According to World Bank statistics, the African Continental Free Trade Area is expected to increase the continent's income by almost $450 billion by 2035.

Experts warn that South Africa's failure to address the economic and social issues driving the protests may lead to a loss of influence and credibility across the continent.

Key Facts

  • The Southern African Development Community has 16 member states and a population of over 380 million.
  • South Africa's GDP is close to $900 billion.
  • The African Continental Free Trade Area is expected to increase the continent's income by almost $450 billion by 2035.
  • South Africa's share of the market could plummet if the climate of threats, hostility, and violence continues.
  • The continent accounts for approximately 30% of South Africa's export market.