SA firms face diplomatic fallout as xenophobic protests spread – report

Anti-immigrant protests

Cape Town – South African companies with major operations across Africa are facing growing pressure as anti-immigrant protests in South Africa spark diplomatic tensions and calls for action against their businesses.

More than 2,700 migrants from Ghana, Nigeria, Mozambique and Malawi have been assisted to return home amid fears of escalating violence, while over 7,400 undocumented migrants were arrested in the past month.

According to Bloomberg, companies such as MTN, Standard Bank and Gold Fields are monitoring the situation closely due to their extensive operations outside South Africa.

The report said that MTN has sent a senior executive to engage with officials in Ghana and is supporting repatriated Nigerians, while Standard Bank says it remains focused on the safety of employees and clients.

Direct business impact

MTN CEO Ralph Mupita said the company had not yet experienced direct business impacts but remained cautious in key markets such as Nigeria and Ghana.

“MTN makes less than 20% in South Africa and makes 80% of our earnings elsewhere,” he said, adding, “We were born in South Africa, but we are a pan-African organisation now.”

The diplomatic fallout is intensifying, with Ghana’s Foreign Minister Samuel Okudzeto Ablakwa calling on the African Union to discuss the treatment of African migrants in South Africa, while Nigeria is considering possible measures against South Africa, the report said.

South Africa, home to about three million immigrants, has periodically experienced xenophobic violence. The latest demonstrations have been driven by concerns over unemployment, crime and pressure on public services.

Justice Minister Mmamoloko Kubayi acknowledged the damage to the country’s image, saying: “The brand is hurting. We can’t lie about that.”

Meanwhile, the Director-General of the World Health Organisation, Tedros Adhanom Ghebreyesus, has condemned the anti-immigrant threats and violence in South Africa, describing it as a “tragic betrayal” of the country’s historic struggle for freedom and justice.

In a statement posted on X, Ghebreyesus said he was deeply troubled by reports of attacks against foreign nationals that have reportedly left people dead and displaced thousands.

“It is profoundly heartbreaking to witness another surge of xenophobic violence in South Africa this week. Hundreds have marched on Parliament, thousands of families have been displaced, and lives have been tragically cut short,” he said.

Referring to reports of fatalities, he added: “These include at least five Ethiopians killed earlier in the attacks, and five Mozambicans who died in Mossel Bay. Thousands more are now fleeing for their lives.”

Ghebreyesus said South Africa’s history made the violence particularly painful, noting that many African countries had supported the anti-apartheid struggle.

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