JOHANNESBURG – Africa’s largest bank by assets has cautioned South Africa against adopting overly restrictive migration policies, arguing that migrants play a critical role in supporting economic growth, expanding domestic demand and strengthening regional trade rather than simply competing with local citizens for jobs.
Speaking at the Kgalema Motlanthe Foundation Winter Seminar in Johannesburg, Standard Bank Group Chief Executive Sim Tshabalala said the economic debate surrounding migration should be guided by evidence rather than political rhetoric. His remarks come at a time when South Africa is reviewing its immigration framework amid increasing public concern over undocumented migration and growing anti-foreigner sentiment.
According to Business Insider Africa, Tshabalala urged policymakers to view migration as an economic asset that contributes to production, consumption and investment across the economy, warning that policies designed to restrict the movement of people could ultimately undermine South Africa’s long-term growth prospects.
Drawing on the United Kingdom’s withdrawal from the European Union, Tshabalala described Brexit as a cautionary example of the unintended economic consequences that can arise when migration becomes the centrepiece of economic policy.
He noted that Britain’s departure from the European Union had been associated with lower economic growth, weaker investment and a less dynamic labour market, arguing that South Africa should carefully consider those lessons before adopting similar approaches to labour mobility.
“Migration should be understood within its broader economic context,” Tshabalala said, explaining that migrants contribute far beyond the labour market. They generate consumer demand, pay taxes, establish businesses, rent accommodation, utilise transport systems and purchase goods and services that support domestic economic activity.
Rather than viewing migrants solely as employees, he argued, policymakers should recognise them as consumers, entrepreneurs, investors and taxpayers whose participation expands the overall size of the economy.
From a banking perspective, Tshabalala noted that migrants also deepen financial markets by opening bank accounts, borrowing capital, investing in businesses and participating in commercial transactions that support economic growth.
He further challenged the widely held perception that migrants impose a disproportionate burden on public finances without making corresponding contributions. Migrants employed within the formal economy contribute through income taxation, while those operating informal businesses continue to support government revenues indirectly through value-added tax and other consumption-related taxes.
According to Business Insider Africa, Tshabalala argued that the available economic evidence does not support claims that immigration systematically reduces employment opportunities for domestic workers. Instead, migration often complements local labour markets by filling critical skills shortages, expanding productive capacity and stimulating additional economic demand.
His intervention carries particular significance given Standard Bank’s extensive footprint across the continent. The banking group operates in more than twenty African countries and serves as one of the continent’s largest financiers of trade, investment and cross-border commerce.
Tshabalala emphasised that South Africa’s economy has become increasingly integrated with the rest of Africa. South African companies have invested hundreds of billions of rand across the continent, while African businesses continue to invest significantly within South Africa. Many of the country’s largest corporations—including those operating in banking, telecommunications, mining, retail and energy—derive a substantial share of their revenues from regional markets.
He argued that these commercial realities make regional economic integration increasingly important for South Africa’s future prosperity. Restricting the movement of people, he suggested, risks weakening the commercial relationships upon which many South African businesses depend.
The remarks come as South Africa undertakes one of its most comprehensive reviews of immigration policy in recent years. Government has approved a revised White Paper on Citizenship, Immigration and Refugee Protection aimed at consolidating immigration legislation while modernising border management and creating clearer pathways for skilled professionals, investors and entrepreneurs.
At the same time, authorities have expanded the Trusted Employer Scheme, allowing qualifying companies to recruit highly skilled foreign professionals through faster visa processing in sectors experiencing critical skills shortages.
Business leaders participating in the seminar argued that South Africa’s underlying economic challenges—including slow economic growth, infrastructure constraints, governance failures and high unemployment—cannot be addressed solely through immigration restrictions.
Former President Kgalema Motlanthe reportedly observed that economic frustration and weak growth, rather than migration itself, have become major drivers of rising xenophobic tensions.
Similarly, MTN Group Chairman Mcebisi Jonas argued that many of South Africa’s structural economic problems would remain even in the absence of migrant labour, noting that migrant workers have historically contributed significantly to the country’s mining, agricultural and commercial development.
Tshabalala concluded that the debate should not centre on whether migration should be regulated, but on how immigration policy can balance national security with economic competitiveness.
His intervention reflects a growing view within Africa’s corporate sector that economic integration, skilled labour mobility and regional investment will become increasingly important drivers of growth under the African Continental Free Trade Area (AfCFTA). For South Africa, maintaining its position as the continent’s leading financial and commercial hub may ultimately depend on policies that facilitate, rather than discourage, the movement of talent, capital and entrepreneurship across African borders.
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