Business

Employer organisation says businesses run by legal foreigners boost economy

By Boitumelo Kgobotlo
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The South African Police Service says the appointment of a multidisciplinary team underscores the seriousness with which  the matter is being treated.

The National Employers’ Association of South Africa (Neasa) has defended its members from accusations that they are employing undocumented migrants and warned that protests against illegal immigration could deter investment.

However, other business organisations believe keeping undocumented migration in check will not harm trade with African countries or negatively impact the economy.

This week’s protests were fuelled by frustrations over unemployment, crime and strained public services. Demonstrators blamed illegal migrants.

Neasa told Sunday World the perception that businesses generally employed undocumented foreign workers was mistaken.

National manager Jaco Swart said legal foreigners were employed in hospitality, mining and construction. Most illegal immigrants operated in the informal economy, particularly in the wholesale and retail sector.

Removing them from the informal sector, he said, could negatively impact the economy.

“The income they generate through their business ventures is recirculated back into the economy and therefore indirectly contributes to the tax income the government receives. By excluding these individuals, the size of the economy, in particular the informal economy, will decrease.”

Neasa also cautioned that hostility towards migrants could damage investor confidence and strain regional relations.

“Economic growth is dependent on a conducive political and investor environment. If government introduces business-friendly policies, curbs corruption and decreases business regulation, the economy will grow, creating more employment opportunities.”

He said businesses needed foreign workers to fill skill shortages, hence the call to simplify work permit processes.

Black Business Council CEO Kganki Matabane said no country should allow a situation where undocumented people remained unchecked.

“Every country has laws and those laws have to be respected by citizens and non-citizens alike. All countries need to know who is in their country and for what reason.

“Stricter actions and controls will create a positive atmosphere for South Africans to be employed to replace illegal immigrants. The economy will grow as those employed citizens will pay taxes and consume goods and services,” he said.

South African Chamber of Commerce and Industry CEO Alan Mukoki echoed the view, saying the protests highlighted the need to stop the influx of undocumented foreign nationals.

Mukoki said most illegal foreigners were usually hired by construction and agriculture as cheap labour.

He said the country needed to help Africa appreciate South Africa’s situation. “If properly understood and properly communicated with them, they too will understand because no country has open borders.”

 

 

 

  • The National Employers’ Association of South Africa (Neasa) defended members against claims of employing undocumented migrants, stating most illegal immigrants work in the informal sector, particularly wholesale and retail.
  • Neasa warned that protests against illegal immigration and hostility towards migrants could harm investor confidence and regional relations, ultimately impacting economic growth.
  • Neasa emphasized the importance of legal foreign workers in sectors like hospitality, mining, and construction, calling for simplified work permit processes to fill skill shortages.
  • Other business leaders, including the Black Business Council and South African Chamber of Commerce, supported stricter controls on undocumented migrants, arguing it would create jobs for South Africans and boost the economy.
  • The recent protests, driven by frustrations over unemployment, crime, and strained public services, highlight tensions related to illegal migration but business groups stress the need for balanced policies respecting legal frameworks and regional cooperation.
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The National Employers’ Association of South Africa (Neasa) has defended its members from accusations that they are employing undocumented migrants and warned that protests against illegal immigration could deter investment.

However, other business organisations believe keeping undocumented migration in check will not harm trade with African countries or negatively impact the economy.

This week’s protests were fuelled by frustrations over unemployment, crime and strained public services. Demonstrators blamed illegal migrants.

Neasa told Sunday World the perception that businesses generally employed undocumented foreign workers was mistaken.

National manager Jaco Swart said legal foreigners were employed in hospitality, mining and construction. Most illegal immigrants operated in the informal economy, particularly in the wholesale and retail sector.

Removing them from the informal sector, he said, could negatively impact the economy.

“The income they generate through their business ventures is recirculated back into the economy and therefore indirectly contributes to the tax income the government receives. By excluding these individuals, the size of the economy, in particular the informal economy, will decrease.”

Neasa also cautioned that hostility towards migrants could damage investor confidence and strain regional relations.

“Economic growth is dependent on a conducive political and investor environment. If government introduces business-friendly policies, curbs corruption and decreases business regulation, the economy will grow, creating more employment opportunities.”

He said businesses needed foreign workers to fill skill shortages, hence the call to simplify work permit processes.

Black Business Council CEO Kganki Matabane said no country should allow a situation where undocumented people remained unchecked.

“Every country has laws and those laws have to be respected by citizens and non-citizens alike. All countries need to know who is in their country and for what reason.

“Stricter actions and controls will create a positive atmosphere for South Africans to be employed to replace illegal immigrants. The economy will grow as those employed citizens will pay taxes and consume goods and services,” he said.

South African Chamber of Commerce and Industry CEO Alan Mukoki echoed the view, saying the protests highlighted the need to stop the influx of undocumented foreign nationals.

Mukoki said most illegal foreigners were usually hired by construction and agriculture as cheap labour.

He said the country needed to help Africa appreciate South Africa’s situation. “If properly understood and properly communicated with them, they too will understand because no country has open borders.”