Standard Bank Group Chief Executive Sim Tshabalala has cautioned South Africa against adopting migration policies that overlook the economic role played by migrants, arguing that people moving across borders contribute to consumption, entrepreneurship, tax revenues and regional economic integration.
Speaking at the Kgalema Motlanthe Foundation Winter Seminar in Johannesburg, Tshabalala said migration should be assessed beyond the narrow question of competition for employment. He argued that migrants also participate in economies as consumers, business owners, tenants, taxpayers and contributors to skills development.
“Migration is not only about workers. Migrants are also consumers, entrepreneurs, traders and investors who participate in economic activity,” Tshabalala said, according to reports from the event.
His remarks come amid renewed public debate in South Africa over undocumented migration, pressure on public services and concerns among some communities about competition for jobs. The country is currently reviewing its immigration framework as it seeks to strengthen border management while attracting skills, investment and entrepreneurship.
Tshabalala cited the United Kingdom’s experience following its departure from the European Union as an example of the potential economic consequences associated with reducing labour mobility and economic openness. Estimates of Brexit’s impact vary among economists, although several assessments have concluded that the UK economy has experienced weaker trade performance and reduced investment compared with projections of remaining within the European Union.
The debate around migration in South Africa reflects wider continental dynamics. As Africa’s largest industrial economy, South Africa remains a major destination for migrants from across the continent, particularly from neighbouring countries including Zimbabwe, Mozambique, Lesotho and Eswatini. Migration flows have historically been shaped by employment opportunities, regional economic disparities, conflict, climate pressures and established family and business networks.
Research by international institutions, including the International Labour Organization and the World Bank, has highlighted that migration can produce both opportunities and challenges depending on how governments manage labour markets, social systems and economic inclusion.
Tshabalala argued that migrants contribute to demand within the economy through spending on housing, transport, education, food and other services. He also noted that formal sector migrants contribute through income taxes, while those operating in informal markets contribute indirectly through consumption taxes and economic activity.
However, migration remains a complex policy issue in South Africa, where high unemployment, inequality and pressure on public services have contributed to public frustration. Critics of current migration levels argue that the state must improve enforcement of immigration laws and ensure that employment opportunities are accessible to South African citizens.
Business leaders and policymakers have increasingly emphasised that migration policy requires a balance between effective regulation and recognising economic interdependence across Africa. South Africa’s economy is closely connected to the wider continent through trade, investment and corporate expansion.
Standard Bank, Africa’s largest bank by assets, operates across more than 20 African markets and has positioned itself as a key institution supporting cross border trade and investment. The bank reported total assets of approximately R3.6 trillion at the end of 2025 and remains one of the continent’s most significant financial institutions.
Tshabalala said South African companies have invested substantially across Africa, while African entrepreneurs and businesses have also expanded into South Africa. He argued that these economic links demonstrate that the movement of people, capital and businesses across borders is central to Africa’s development trajectory.
The discussion comes as South Africa continues reforms to its immigration system. The government has proposed consolidating existing citizenship, immigration and refugee legislation into a more integrated framework aimed at improving administration, strengthening border controls and creating clearer pathways for skilled workers, investors and entrepreneurs.
The Department of Home Affairs has also expanded initiatives such as the Trusted Employer Scheme, which is designed to accelerate visa processing for companies recruiting individuals with specialised skills and strategic expertise.
For South Africa, the challenge remains finding a policy approach that addresses legitimate concerns around migration management while recognising the broader economic relationship between mobility, development and African regional integration.
As the continent moves towards deeper economic cooperation through frameworks such as the African Continental Free Trade Area, debates around migration are increasingly linked to questions about how African economies can balance national priorities with the opportunities created by greater connectivity between countries.
