Ramaphosa Defies Anti-Immigration Lobby — Foreign Workers 'Vital' for SA Economy

June 21, 2026 3 min read

President Cyril Ramaphosa told officials at the Union Buildings in Pretoria on Wednesday that illegal immigration was not responsible for South Africa's social and economic difficulties, pushing back against a growing political narrative that has blamed migrants for unemployment and strain on public services.

A direct challenge to political rivals

The statement marks a significant intervention by Ramaphosa ahead of local elections, directly addressing claims made by opposition parties that immigrants take jobs from South African citizens and drain state resources. His remarks at the presidential residence drew criticism from rival factions within the ruling ANC and from the populist EFF party, which has campaigned loudly on anti-immigration platforms. Ramaphosa said the government would not be distracted by what he called misleading rhetoric designed to divide South Africans.

Economic reality behind the politics

South Africa's unemployment rate stands at 32.9 percent, the highest since the end of apartheid, according to Statistics South Africa. Informal trading, small business formation, and key sectors including construction and retail rely heavily on immigrant labour in cities such as Johannesburg, Cape Town, and Durban. Economists have long argued that the country's economic stagnation stems from structural problems including unreliable electricity supply, skills shortages, and weak growth — not from migration. Business groups in Pretoria and the commercial hub of Sandton have repeatedly warned that demonising immigrants damages South Africa's reputation as an investment destination.

Investor confidence at stake

Foreign direct investment into South Africa fell by 18 percent last year, data from the Department of Trade and Industry shows. Analysts at Johannesburg-based Anchor Capital said Ramaphosa's public defence of immigration could help reassure international investors who view political scapegoating of migrants as a warning sign. Companies operating in sectors ranging from mining to technology have told the presidency privately that they depend on skilled foreign workers to fill gaps that South African educational institutions have not addressed. Cutting off that pipeline, they argue, would accelerate the country's productivity decline.

What businesses are saying

The Business Unity South Africa lobby group confirmed it had submitted research to the presidency showing that immigrant-owned businesses contribute an estimated 15 percent of formal sector turnover in township economies. The Minerals Council South Africa, representing mining companies, stated that foreign professionals were essential for operating complex extraction operations that require specialist engineering qualifications in short supply domestically. Restaurant and hospitality associations in Cape Town have reported labour shortages in kitchen and service roles since the government tightened work permit renewals in 2023.

The political risk for Ramaphosa

The president's stance carries domestic political cost. Several ANC branches in Gauteng province have passed resolutions calling for stricter enforcement against undocumented migrants, reflecting voter frustration over high crime rates and inadequate service delivery. The Inkatha Freedom Party, a coalition ally, has also demanded action on illegal immigration. Ramaphosa's defenders say his position reflects economic pragmatism rather than detachment from ordinary South Africans' concerns. Critics within his own party accuse him of ignoring the lived experience of communities that feel overwhelmed by informal settlements and competition for low-wage work.

Government policy moves ahead

The Department of Home Affairs confirmed it is piloting a new digital visa system aimed at distinguishing between documented workers who contribute to the economy and those who enter illegally. The system, being tested in Cape Town and Johannesburg, is designed to accelerate permit approvals for skilled workers while speeding up deportations of those without legal status. Home Affairs Minister Leon Schreiber said the dual-track approach would address security concerns without damaging economic activity.

What happens next

Ramaphosa is expected to address the immigration debate again during his State of the Nation address next month. The Department of Home Affairs will publish its first quarterly report on the new visa pilot scheme in April, which will give concrete data on how many work permits have been issued and how quickly removals have proceeded. Markets will be watching whether Ramaphosa can hold his position against political pressure while delivering growth policies that address the underlying causes of South Africa's economic malaise.