Johannesburg, South Africa — South Africa’s economy is facing a significant threat as anti-migrant protests could result in a $43 billion GDP hit, according to economists.
The protests, which have swept across the country, have prompted tens of thousands of migrants to leave, impacting key sectors such as agriculture, construction, and services.
The situation has been exacerbated by public frustration over unemployment, crime, and stagnant domestic growth. Migrants in South Africa, accounting for about 5% of the population, contribute roughly 9% to the country’s GDP.
The departure of foreign workers could lead to economic setbacks, as they are integral to the nation’s economic engine. Minister of Finance Enoch Godongwana addressed the country’s financial outlook in his 2026 Budget Speech, although the specific context of the GDP hit was not detailed. Business leaders and analysts are concerned that the protests could undermine South Africa’s investment climate, affecting its long-term growth prospects.
The government has pledged to tackle illegal immigration through a multi — pronged approach, including deportations, anti-corruption measures, border security, and immigration law reform. President Cyril Ramaphosa has called for a crackdown on illegal migration while urging against xenophobia and vigilantism.
As the country grapples with the potential economic hit, it is crucial for the government to engage with all stakeholders, including businesses, citizens, and migrants, to find sustainable solutions that promote economic growth and social cohesion.
*Additional reporting by ImNews | Sources consulted: 5*
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This original article was produced by the ImNews editorial team
Source: Africa.businessinsider
Source: BI Africa Contributor
