Sim Tshabalala (Standard Bank Group): "Xenophobia leads to higher interest rates, fewer investments and fewer jobs"

While South Africa remains marked by recurring waves of xenophobic violence (riots in 2008, 2015, 2019, Operation Dudula movement) against a backdrop of record unemployment nearing 32%, Standard Bank Group CEO Simpiwe Sim Tshabalala has penned an op-ed in Financial Afrik challenging the narrative accusing migrants of "taking jobs" and "driving down wages." According to him, "these claims are, quite simply, contradicted by the facts" and "overall, migration is beneficial to economic growth and fosters job creation." The head of Africa's largest bank by assets links migration to financial services: remittances, transactional accounts, foreign exchange operations, mobile wallets, cash withdrawal networks, and merchant payments. He insists on the need to be able to "transfer money safely, cheaply and in compliance with regulations across borders." For states and investors, the message is clear: social instability linked to xenophobia drives up the cost of capital and weakens local employment, contrary to the populist narrative. This stance by a major banking executive illustrates a structural challenge: in a South Africa committed to the ZLECAf, the free movement of people and capital is a prerequisite for lower risk premiums and cross-border financial inclusion.