PRETORIA — Recent anti-migrant protests in South Africa are severely impacting the nation’s global image, raising critical concerns regarding continental business operations and economic diplomacy. Justice and Constitutional Development Minister Mmamoloko Kubayi warned that the unrest is causing significant collateral damage to the country’s business and art sectors, prompting experts to analyze the widespread repercussions on trade relations and the local tourism industry.
Victor Kgomoeswana, an author and commentator on African business matters based at the University of Limpopo, explained that the current climate is driven by a vacuum in law enforcement. He noted that major corporations, including MTN and Gold Fields, are facing backlash across the continent. Kgomoeswana emphasized that Nigeria remains the “jewel in the crown” for MTN; without the Nigerian market, the telecommunications giant would operate at less than half of its current size in revenue, subscriber base, and profit.
To manage the diplomatic fallout, MTN deployed its Senior Vice President for Markets, Ebeneza Asante, to Ghana to engage with the foreign minister. The company is also navigating the complex resettlement processes of Nigerian nationals recently repatriated from South Africa.
The tourism and aviation sectors face parallel threats. Airlink, a private South African airline serving over ten African destinations, is expected to experience operational impacts. Furthermore, more than 70% of international tourists arriving in South Africa by road or air originate from the rest of the African continent. While these visitors generate less direct revenue per capita, they stay longer and spend more at small and medium enterprises, which is vital for local economic growth. Consequently, the current environment is highly unfavorable for the nation’s trade relations.
Operating across borders requires companies to act as economic diplomats, navigating significant leverage held by foreign governments. Kgomoeswana pointed to regulatory licensing and ports of entry as primary pressure points. He recalled MTN’s historical standoffs with the governments of Nigeria, Kenya, and Ghana over licensing and tax disputes, noting that regulatory authorities possess the power to impose billion-dollar fines or revoke operating licenses mid-contract. Additionally, aviation authorities control air traffic and landing rights; a hostile government could deny landing permissions to airlines like Airlink, creating severe ripple effects across interconnected flight networks. He also noted that tensions surrounding events like a Bafana Bafana soccer match demonstrate that sentiment, business, and politics cannot be separated, turning such incidents into diplomatic nightmares. Meanwhile, Gold Fields is currently navigating active licensing discussions in Ghana, though these reportedly began prior to the recent protests.
Addressing the root causes of the unrest, Kgomoeswana stated that public hostility is fueled by poor regulatory systems and inadequate law enforcement regarding illegal immigration. While economic hardship and hunger justify public frustration, the government bears the responsibility for failing to utilize its border management, police, and military resources to enforce immigration and customs regulations. He stressed the need for humane border management, noting that even if all undocumented immigrants were removed, South Africa’s 40% unemployment rate would persist, making it dishonest to blame joblessness solely on immigration.
To resolve the crisis, Kgomoeswana advised that the government must strictly control illegal immigration, enforce existing laws, and eradicate corruption at border posts and Home Affairs offices. Furthermore, the state must invest in diplomatic relations to engage with the home countries of undocumented immigrants, ensuring accountability for their citizens who utilize South African tax-funded resources, thereby stabilizing the nation’s relations across the African continent.
