Sim Tshabalala (Standard Bank Group): 'Xenophobia leads to higher interest rates, less investment and fewer jobs'

As South Africa remains marked by recurring waves of xenophobic violence (the 2008, 2015 and 2019 riots, the Operation Dudula movement) against a backdrop of record unemployment nearing 32%, Standard Bank Group CEO Simpiwe Sim Tshabalala has written an op-ed for Financial Afrik challenging the narrative that migrants 'take jobs' and 'drive wages down'. According to him, 'these claims are simply contradicted by the facts' and 'on the whole, migration benefits economic growth and supports job creation'. The executive, who heads Africa's largest bank by assets, links migration to financial services: remittances, transaction accounts, foreign exchange operations, mobile wallets, cash withdrawal networks, and merchant payments. He stresses 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 raises the cost of capital and undermines local employment, contrary to the populist narrative. This stance from a major banking leader illustrates a structural issue: in a South Africa engaged in the AfCFTA, the free movement of people and capital determines lower risk premiums and deeper cross-border financial inclusion.