Rabia Mayet | rabiamayet@radioislam.co.za

07 July 2026

2-minute read

The June 30^th deadline has come and gone, marches and protests have taken place across South Africa, many undocumented migrants have left while many still remain. With March and March indicating that they will continue to march every Thursday for the month of July, where does this leave the economy?

Speaking to Ml Sulaimaan Ravat on Sabahul Muslim, Professor Waldo Krugell says that the impact on the economy is “difficult to estimate” because the extent of a “complete shutdown” is not known. While the approximate GDP of SA is R21billion per day, not all of that value was lost through production and consumption. Business continued on many fronts and the markets did not show much of a response, but June 30^th was a “marked slower day” with about a “50% of a lost day,” he points out, and a long-term effect investor confidence. However, these figures do not take into account mobilising the police and private security forces.

In the case of businesses like factories who employ foreigners who have now had to leave their jobs and the country, Professor Krugell says that according to economic history, those jobs are not then taken up by local South Africans. In certain instances, like high-tech production, the people are replaced by machines. Collecting the data of the shutdown will take a long time, he mentions.

The possibility of South Africans replacing foreigners in the job market is “mainly rhetoric,” Professor Krugell indicates. Immigrants are generally more productive, better educated and more willing to work for a lower wage than local people. Economists are doubtful about such arguments and concerned about the damage to the country.

The tourism industry is also likely to suffer. With tourists and travellers now having the perception of trouble brewing in South Africa, despite the marches being relatively peaceful, they are likely to postpone or change their travel plans until the country is deemed stable again.

Listen to the full interview with Ml Sulaimaan Ravat and Professor Waldo Krugell here.