South African companies operating across Africa are facing increasing pressure due to anti-immigrant protests in South Africa, which are causing diplomatic tensions and calls for action against these companies. Mobile operator MTN Group has sent a senior executive to meet with officials in Ghana and is supporting Nigerians repatriated from South Africa, while Standard Bank Group, the continent’s largest lender, is closely monitoring the situation.
Amid fears that anti-immigrant demonstrations may escalate, over 2,700 people from Ghana, Nigeria, Mozambique, and Malawi have received assistance to return home from South Africa. According to the Department of Home Affairs, 7,400 undocumented migrants were arrested for violating immigration laws over the past month, and the total number of detainees this year exceeds 40,000.
Diplomatic Tension and Corporate Risks
The growing backlash against anti-immigrant protests highlights the risks faced by South African corporations with operations across the continent. In Nigeria, Foreign Minister Geoffrey Onyeama stated that the government is considering possible measures against South Africa following the repatriation of Nigerian citizens.
MTN, whose Nigerian business is its largest, is working with authorities to support 1,350 citizens who returned from South Africa on a charter flight last week, providing them with SIM cards, data, and financial assistance. MTN CEO Ralph Mupita said: “We haven’t seen an impact directly on our business, but we are very sensitive in markets like Nigeria and Ghana.” He also added: “MTN gets less than 20% of its profit in South Africa and 80% of our revenue from other countries. We were born in South Africa, but now we are a pan-African organization.”
Standard Bank, which operates in more than a dozen African countries, remains “focused on the safety and well-being of our employees and clients, as well as the uninterrupted provision of services through our operations,” the bank said in an emailed response.
Challenges for the Mining Industry in Ghana
For Gold Fields, which operates the Tarkwa gold mine in Ghana, the current tension comes amid a shifting political landscape in the country. The Ghanaian government has indicated that the renewal of mining licenses will no longer be automatic and is seeking greater local participation in the mining sector, increasing scrutiny of foreign operators.
This policy, which predates the current protests, risks adding momentum to calls for a tougher stance on foreign companies. In Ghana, a group called the Ghana First Alliance filed a petition with the president last week, demanding action to protect the country’s citizens and greater control over South African enterprises. “We want Pretoria to be held accountable,” said Nana Otu Darko, coordinator of the Ghana First Alliance. Gold Fields reported that “it is currently engaged in the process of renewing the Tarkwa mining license,” with a decision expected by the end of 2026.
South Africa’s relative wealth, with a GDP per capita of around $7,500 compared to about $1,080 in Nigeria, has long made it an attractive destination for migrants from across the continent. The country is home to around 3 million immigrants, most of whom come from other parts of Africa.
The recent protests were sparked by perceptions that foreign nationals are contributing to unemployment, crime, and pressure on public services. These concerns have periodically boiled over into violence, as they did in 2008, when more than 60 people were killed and around 50,000 were displaced in a series of xenophobic attacks.
Source: News24