JOHANNESBURG, May 19– South Africa can stimulate economic growth and unlock employment opportunities by supporting foreign entrepreneurs and encouraging their full participation in the small business sector, according to Raymond Rutendo Mafunga, director of Ruemaf Development Projects.
Ruemaf is a Johannesburg-based immigration consultancy and construction management firm.
Speaking to Xinhua, Mafunga said migrant-owned small and medium-sized enterprises have become an increasingly vital component of township and inner-city economies across South Africa. These businesses contribute significantly to local development through trade, investment, and job creation.
Many foreign entrepreneurs operate grocery stores, restaurants, tailoring shops, and cellphone repair businesses, often providing affordable goods and services while supporting local suppliers, Mafunga noted.
These comments come amid a resurgence of anti-immigrant sentiment and recent attacks targeting foreign nationals and foreign-owned businesses in several parts of the country.
In response, countries including Zimbabwe, Malawi, Nigeria, Kenya, and Ghana have issued safety warnings, advising their citizens living in South Africa to remain vigilant following protests against undocumented migration.
South Africa continues to grapple with one of the world’s highest unemployment rates. According to Statistics South Africa’s Quarterly Labor Force Survey released in May, the official unemployment rate rose to 32.7 percent in the first quarter of 2026, leaving more than 8.1 million people out of work.
As the country faces persistent joblessness and sluggish economic growth, small businesses remain critical drivers of economic recovery, Mafunga said, adding that entrepreneurs should be evaluated on their economic contributions rather than their nationality.
In Johannesburg, Ethiopian-born businessman Abdul Rahman said that he started his convenience store several years ago with limited savings. Today, his business employs eight South Africans and sources products exclusively from local wholesalers and farmers.
“When the business grows, everyone benefits,” Rahman said. “We employ local people, pay rent, and support South African suppliers.”
Mafunga noted that migrant entrepreneurs often bring broader business networks, competitive pricing, and extended operating hours, which improves access to essential goods and services in underserved communities.
Phathu Ndou, a local entrepreneur, said many South Africans are learning from foreign business owners by forming strategic partnerships before establishing their own enterprises in townships and rural areas.
“I started out in a partnership with two Ethiopians here in Johannesburg,” he said. “Today, I independently own two shops in Polokwane and Malamulele, near my home village.”
South Africans stand to benefit from collaborating with foreign entrepreneurs instead of opposing them, Ndou added.
Foreign-owned small businesses have also become a crucial lifeline for local jobseekers. Pretoria resident Nomsa Dlamini, who works at a migrant-owned mini-market, said her job helps her support her family through difficult economic times.
“Jobs are incredibly hard to find,” Dlamini said. “The most important thing is being able to work and earn an honest living.”
Mafunga maintained that fostering entrepreneurship and preserving an inclusive business environment will help South Africa strengthen small enterprises, attract foreign investment, and broaden economic participation.
Conversely, he cautioned, xenophobic violence harms host communities by disrupting essential services, discouraging future investments, and destroying existing jobs.
“Small businesses are key drivers of economic growth,” Mafunga emphasized. “Allowing them to grow and operate freely creates jobs, stimulates local economies, and drives sustainable development.”
Independent observers believe that stronger partnerships between local and foreign entrepreneurs could foster innovation, accelerate skills development, and boost regional trade under the African Continental Free Trade Area.
As South Africa continues to seek solutions for chronic unemployment and economic inequality, experts suggest that embracing entrepreneurship across all communities remains vital to expanding economic opportunities and achieving shared prosperity. (Namibia Daily News / Xinhua)
