Ronald Lamola warns business: ‘Stop exploiting undocumented migrants, undermining labour laws’

Speaking at an Absa ambassadorial breakfast focused on Africa’s economic development and integration, Lamola said South Africa continued to attract migrants from across the continent seeking employment and better opportunities.

“South Africa is a leading destination for migrants on the continent. Many of our migrants come to South Africa from the region and beyond in search of work and a better life,” he said.

However, he warned that some employers were taking advantage of irregular migration to sidestep labour and immigration regulations.

“There is, however, an unsettling pattern of some employers exploiting irregular migration to evade labour and immigration laws. This conduct is unlawful. It is unfair to responsible businesses, erodes labour standards for everyone and damages social cohesion.”

Economic challenges driving migration

Lamola linked migration flows across Africa to persistent economic difficulties in many countries, saying limited growth and poor living conditions continued to drive people to seek opportunities elsewhere.

While the economic outlook for sub-Saharan Africa showed signs of improvement, he said growth remained insufficient to significantly improve living standards.

“The IMF forecasts sub-Saharan Africa growth at 4.5% this year and at similar levels in the coming year. Still, these growth figures are from a lower base and the living conditions in many countries are still low. This is one of the sources of migration; economic anxiety,” he said.

Call for growth through key sectors

The minister urged governments and the private sector to work together to unlock the continent’s economic potential through investment in strategic industries.

“It is for this reason that the business community must collaborate with us to think about ways to accelerate growth on the continent through mining, agriculture and manufacturing,” he said.

Lamola highlighted agriculture as a sector with immense untapped potential but noted that land tenure challenges continued to hinder development.

“Studies show that roughly 90% of this land has informal land rights, which constrain agricultural development. We must fix this together.”

Social and regional risks

Lamola warned that the exploitation of undocumented migrants not only affected workers and businesses but also risked deepening tensions between citizens and foreign nationals.

According to the minister, these tensions could have consequences beyond South Africa’s borders, potentially affecting regional trade and the interests of South African companies operating elsewhere on the continent.

“In a period of economic hardship, these practices also feed tensions between South Africans and migrants from other African countries. Those tensions can also spill into other countries and harm the interests of South African businesses elsewhere on the continent,” he said.

Africa at a defining moment

Absa Group chief executive Kenny Fihla told delegates that Africa faced a critical opportunity as global demand for critical minerals increased the continent’s strategic importance.

“Africa is at an inflection point. Global demand for critical minerals has repositioned our continent as a strategic supplier to the world, but the question we must now confront is more fundamental: can Africa harness this moment to power its industrialisation?” he said.

Fihla said African nations needed to decide whether they would continue exporting raw materials or build industries capable of creating greater value and jobs locally.

“What we do now will determine whether we remain exporters of raw potential or become architects of integrated value-creating economies.”

Integration key to future growth

Fihla argued that Africa’s long-term competitiveness would depend on its ability to combine its demographic advantages, natural resources and renewable energy potential into integrated economic systems.

“The outcomes we seek, industrialisation, infrastructure development and regional integration, cannot be achieved in silos. They require governments that enable, diplomacy that connects, finance that catalyses and industry that executes,” he said.

He stressed that stronger regional integration would be essential if Africa was to compete effectively in a rapidly changing global economy.

“For Africa to strengthen its position in a changing global economy, we must be able to engage the world with the scale and confidence of a more integrated continental market,” Fihla said. “That requires us to make greater practical progress on the movement of goods, services, capital and people across our borders.”