Xenophobia: Will expelling foreigners create jobs?
Rather than entering these businesses and competing through enterprise, some South Africans have resorted to confrontation, raising questions about whether the hostility is driven more by frustration than genuine labour market competition.
Xenophobia: Will expelling foreigners create jobs?
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OPINION
More than 1,000 Ugandans have so far been repatriated from South Africa following the latest wave of xenophobic attacks targeting foreign nationals. For many of them, South Africa had become more than just a place of work. It was home. They had established businesses, raised families, invested in communities and, in many cases, created employment for South Africans.
Their story reflects a familiar migration pattern. They identified opportunities, took risks where others hesitated and built enterprises that contributed to the economy. They were not merely job seekers; many became investors and employers.
The Ugandans are not alone. Thousands of migrants from Nigeria, Ghana, Ethiopia, Kenya, Zimbabwe, Somalia and other African countries have also been forced to flee for their lives.
Like migrants throughout history, they moved in search of better opportunities. Some established thriving businesses, while others accepted jobs that many South Africans were unwilling to do.
Migrants often fill economic gaps that already exist. They venture into businesses considered too risky, too small or too demanding by locals and take on difficult, low-paying jobs that many citizens shun. This is a common feature of migration worldwide.
In South Africa, many young people aspire to white-collar employment or positions in established organisations. Consequently, sectors of the informal economy, such as street vending, small-scale retail and labour-intensive micro enterprises, have attracted migrants willing to start with little capital and work long hours. Ironically, many of those now being targeted are not competing for corporate jobs but are operating in the informal sector.
In the run-up to the June 30 deadline demanding that undocumented migrants leave South Africa, disturbing scenes emerged of mobs patrolling neighbourhoods, intimidating foreigners and threatening violence. Many of those targeted were informal traders selling vegetables, clothes and household goods on pavements. The images raised an uncomfortable question: if these businesses are profitable enough to justify violently expelling foreigners, why are more South Africans not entering the same businesses and competing fairly instead?
Illegal immigration is a legitimate concern for any country and has the right to regulate who enters and works within its borders. However, enforcing immigration laws is the responsibility of government institutions, not angry mobs.
Uganda’s own history offers valuable lessons. Asian migrants first arrived in the 1890s to help build the Uganda Railway and were later joined by traders who recognised commercial opportunities that many locals had not yet exploited. Small retail shops, popularly known as dukawalahs, gradually expanded into thriving enterprises. One remarkable example is Muljibhai Madhvani, who arrived in Uganda as a teenager.
Beginning with a small trading business, he built one of East Africa’s largest industrial empires centred in Kakira. Today, the Madhvani Group employs thousands of Ugandans directly and indirectly. Similar stories can be found across Uganda and Kenya, where migrant communities became major contributors to industrialisation, commerce and employment.
This is not unique to East Africa. Throughout history, migrants have identified opportunities overlooked by local populations. Economists explain this through the push-and-pull theory of migration: difficult conditions push people from their home countries, while opportunities pull them elsewhere.
South Africa’s unemployment crisis is real and deserves serious policy attention. Many citizens understandably feel frustrated by persistent poverty and inequality. However, blaming migrants provides a convenient political narrative without addressing deeper structural problems, including slow economic growth, inadequate skills, inequality and governance challenges. Now that many foreigners have been forced out, the real test will be whether unemployment among South Africans actually declines.
Industries employing hundreds of workers shut down, scarcity of essential products followed, government revenue declined, and the economy deteriorated. It took decades for Uganda to rebuild investor confidence after the expulsion.
History shows that populist actions targeting productive communities often produce unintended economic consequences. Rather than creating prosperity, they can destroy businesses, reduce employment and weaken economic growth. Reports from parts of South Africa indicate that following the departure of many foreigners, some businesses have closed, leaving South Africans who worked there unemployed. Landlords have also lost tenants, and in some cases, the vacated properties remain unoccupied. These developments suggest that migrants were not only competitors in the labour market, but also consumers, employers and contributors to local economic activity.
Another striking feature of the South African attacks is their selectivity. The violence is overwhelmingly directed at African migrants, while many non-Africans, including Indians and Chinese, appear largely untouched. It is also noteworthy that unemployed South Africans rarely migrate to neighbouring African countries in search of similar informal jobs.
Those seeking opportunities abroad often look to Europe, North America, Australia or the Middle East. The irony is that fellow Africans pursuing the same aspirations within Africa have become the targets of hostility.
For Ugandans returning home, the experience is bittersweet. Some had lived in South Africa for nearly two decades. Many left when opportunities were limited and are now returning to a country transformed in part by the remittances they sent home. Others had come to regard Uganda as a country where little worked, and prospects were steadily declining.
Their return is likely to challenge those perceptions. Many must have been surprised by the Government’s evacuation effort. Some travelled aboard Uganda Airlines, which did not exist when they left. Others returned through a modernised Entebbe International Airport and travelled along improved roads lined with businesses, residential developments and vibrant nightlife. These changes illustrate that Uganda, despite its challenges, has continued to evolve. However, the homecoming will not be easy for everyone. Some returnees have lost touch with relatives or lack the social and economic networks needed to rebuild their lives.
South Africa’s experience demonstrates that while migration can be regulated by law, xenophobia ultimately weakens the very economies and societies it claims to protect.
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