Economists have warned that the recent departure of foreign workers from South Africa could have serious consequences for the country's labour market and overall economy, despite growing anti-migrant sentiment in several communities.

The warning comes as frustration over unemployment, rising crime and years of slow economic growth continues to fuel protests against foreign nationals in the country.

Although supporters of the demonstrations argue that removing migrants will create more employment opportunities for South Africans, economic experts believe the opposite could occur if businesses lose access to a significant portion of their workforce.

Anti-migrant demonstrations have intensified in recent months, culminating in a nationwide protest held on June 30. While the demonstrations were largely peaceful, fears of possible violence have reportedly prompted thousands of migrants from across Africa to leave South Africa.

Experts warn that the exodus could create labour shortages across industries that have traditionally relied on migrant workers, including agriculture, construction, hospitality, transportation, retail and various segments of the informal economy.

According to Mpho Lenoke, a lecturer at North-West University, migrants often take up jobs that are difficult to fill, helping businesses remain operational while also contributing to economic growth.

Lenoke explained that many foreign nationals establish small businesses that provide employment opportunities for South Africans and increase market competition, ultimately benefiting consumers through improved access to goods and services.

He added that international evidence suggests policies aimed at restricting migrant labour frequently produce unintended economic consequences rather than solving unemployment challenges.

The effects of the recent protests are already being felt in parts of the retail industry.

Foreign-owned spaza shops, which serve as neighbourhood convenience stores operating from small kiosks, garages and shipping containers, play an important role in South Africa's informal economy.

Their activities also support wholesalers, landlords and local employees who depend on these businesses for income.

The protests also affected Sixty60, the grocery delivery platform operated by Shoprite Group, Africa's largest food retailer. Company figures indicate that fewer than one-quarter of its delivery drivers are South African, highlighting the industry's dependence on foreign workers.

According to data from the United Nations, approximately 2.6 million migrants were living in South Africa in 2024, representing about 5 per cent of the country's population.

Although recent estimates of their economic contribution remain limited, earlier research conducted jointly by the Organisation for Economic Co-operation and Development (OECD) and the International Labour Organization (ILO) estimated that migrants contributed approximately 9 per cent of South Africa's Gross Domestic Product (GDP).

Economists therefore caution that while concerns about unemployment and economic inequality remain valid, any large-scale departure of migrant workers could unintentionally weaken businesses, reduce productivity and place additional pressure on an economy that is already facing significant structural challenges.