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) 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.
