Do African Immigrants Contribute towards the Development of the South African Economy: A Literature Review

Abstract

Within the domains of economics and public policy studies, there has been a sturdy increase in the literature on the role played by immigrants (within the premise of this study, unskilled immigrants) in the development of South Africa, especially from an economic perspective. Examining literature related to African migrants in South Africa and their economic contribution, this paper sought to understand whether (un)skilled immigrants contribute to South Africa’s economic development. Amongst the findings of the paper, it was revealed that despite the contribution of (un)skilled immigrants to the South African economy, especially since the fall of apartheid (evident by the different types of informal businesses they run: barbershops, restaurants, vehicle repair shops and salons, to mention a few), their constant struggle to navigate the xenophobic sentiments within South African society is hindering their integration within their respective communities. Nonetheless, despite these challenges, informal businesses by unskilled migrants have become an economic lifeline for those making a living in the informal sector. Central to this has been that they create employment and partake in the transfer of skills and business acumen to their South African employees. Despite their contribution, the role of migrants within the premise of economic contribution has not been welcomed, rather immigrants have been associated with crime and drug smuggling. Therefore, the aim of this paper is to understand how migrants contribute to South Africa’s socio-economic development despite the many challenges they encounter in their quest to integrate within South African society. The study argues that immigrants have contributed to the growth and development of South Africa’s informal sector and with their contribution, contrary to the popular belief that they steal jobs, has created employment and allowed for the transfer of skills to their South African employees. The study, however, acknowledges that from a government perspective, more needs to be done to assist migrants to integrate within South African society and with the development of their businesses.