By Mxolisi Ncube
As shop shutters rise across Johannesburg each morning, thousands of South Africans head to work in migrant-owned businesses. They serve customers, guard premises, stack shelves and help keep township economies moving. Their experiences offer a perspective often overlooked in South Africa’s increasingly heated immigration debate.
One of the most common claims advanced by some politicians and anti-migrant groups is that migrants are worsening unemployment by “stealing jobs” from South Africans. With the country’s unemployment rate remaining above 32%, the argument resonates in communities struggling with poverty and economic hardship.
Yet a walk through Mayfair, Alexandra, Hillbrow, Yeoville, Berea, central Johannesburg or Soweto reveals a more complex picture. Shops, restaurants, salons and spaza stores operated by entrepreneurs from Ethiopia, Pakistan, Somalia, China, Nigeria, Senegal, Ghana and other countries employ thousands of South Africans as cashiers, security guards, cleaners, drivers and shop assistants.
For Soweto-born Sipho Nkosi, 28, employment at an Ethiopian-owned general dealer in central Johannesburg has provided a lifeline.
“I sat at home for almost two years after I lost my construction job,” he says. “No one was hiring. Now I earn enough to pay rent and send a little money to my mother in the Eastern Cape.”
Sipho alternates between serving customers and packing stock, sharing responsibilities with his employer and his wife in what he describes as a healthy, family-like working environment.
“Financially, it is not the most ideal job one could get, but it still sees me through and they pay me on time. They also sometimes give me extra for transport. The work environment is very healthy, so I am not complaining,” he adds.
Research into Johannesburg’s informal economy found that migrant-owned businesses created 1,586 jobs, with South Africans filling 503 of those positions — around 32% of the total. Many were in retail, security and general support roles.
Sipho says his experience does not reflect the claim that migrants take jobs from local people.
“People say they take jobs, but local shops were not hiring me.”
For Thabo Mvelase, originally from KwaZulu-Natal, working as a security guard at a Pakistani-owned spaza and hardware shop in Hillbrow gave him an opportunity to leave crime behind. “This job saved me,” he says.
After becoming involved in petty crime while living in a hijacked Johannesburg building, Thabo decided to change his life when one of his associates was fatally shot by police and another was arrested.
“My wife cried every night, begging me to quit crime and find something better to do.”
His brother, who worked nearby as a security guard, introduced him to the shop owner, who offered him a job.
“They are strict but fair. They give me lunch and, every weekend, a grocery pack.”
Thabo fears that recent marches and threats against migrant-owned businesses could have unintended consequences for South African workers.
“When shops shut, everyone loses. I lose my job and landlords lose rent. I want peace so that I can keep working.”
The economic contribution of migrant-owned businesses extends beyond direct employment. Studies indicate that many pay substantial monthly rent to South African property owners, ranging from around R4,000 to more than R30,000, depending on the size and location of the premises.
They also purchase stock from South African wholesalers, supporting manufacturers, transport companies and warehouse workers across the supply chain.
For University of Johannesburg graduate Nomsa Mtolo, 24, employment at a Braamfontein laundry provides an income while she searches for work in her chosen profession.
“I graduated a couple of months ago and this job keeps me moving while I wait for a more suitable opportunity. The money is better than doing nothing. As a young woman, I need something to keep me busy. I can afford toiletries and other basics, as I still live with my parents.”
Economic data indicate that South Africa’s informal retail sector supports hundreds of thousands of livelihoods and forms a significant part of the country’s estimated R900-billion township economy. Spaza shops alone generate billions of rand in economic activity through employment, purchasing and distribution networks.
Many migrant-owned businesses have also filled gaps left by larger retailers that relocated to suburban shopping centres. Through longer trading hours, cooperative bulk buying and efficient supply chains, they have remained competitive while employing both South Africans and fellow migrants.
Their impact also reaches the formal economy. Many purchase goods from South African wholesalers and retailers, creating demand for locally manufactured products supplied by companies such as Unilever, Tiger Brands, bakeries and other producers. Increased wholesale activity supports additional South African jobs while generating VAT and other tax revenue.
South Africa continues to face legitimate challenges around unemployment, immigration policy and border management. However, the experiences of workers such as Sipho, Thabo and Nomsa demonstrate that the relationship between migrants and local communities is more nuanced than political slogans often suggest.
“I don’t care where the owner comes from,” Sipho says. “If he pays me and the business runs, my family eats.”
Thabo agrees. “We are all trying to survive. Let’s not destroy what works.”
Their stories are echoed by thousands of South Africans whose livelihoods depend directly or indirectly on migrant-owned enterprises. In communities where jobs are scarce, these businesses provide employment, sustain supply chains, generate rental income and help keep township economies alive.
As South Africa grapples with unemployment and migration, the experiences of ordinary workers suggest that productive partnerships can contribute to the country’s economic resilience rather than its decline.
