SA Finance Minister flags immigration as growing economic risk

South Africa’s Minister of Finance Enoch Godongwana says illegal immigration is putting a strain on the country’s limited resources.

Speaking at the National Treasury’s trading services engagement in Durban, KwaZulu-Natal, Godongwana criticised government departments for underspending, especially in the human settlements sector, as various provinces, especially Gauteng and KwaZulu-Natal, have returned unspent budgets despite growing populations.

Godongwana also urged municipalities to improve project delivery and address urbanisation and immigration, cautioning that South Africa’s strained resources and weakened economy can no longer support inefficiency or uncontrolled population growth.

The Minister of Finance also revealed that 51 out of 100 immigrants, whether legal or illegal, settle in South Africa and live in abject poverty. This leads to the mushrooming of informal settlements and overcrowding in urban areas.

He further criticised the principle that “South Africa belongs to all who live in it” calling it a grave mistake.

Godongwana’s remarks come at a time of growing tensions between South African citizens and immigrants. Concerns are mounting that the country could see a repeat of the 2008 xenophobic attacks, as unemployment rises, GDP per capita declines, and economic growth remains stagnant.

In April, the Department of Home Affairs revealed that there was an increase in the number of illegal immigrants deported from South Africa, which is the highest in the last five years.

The number of deported illegal immigrants increased to 46 898 in the 2024/2025 financial year that ended on 31 March 2025.This number surged by 18% compared to the previous year’s 39 672.

The performance of South Africa’s Department of Home Affairs over the past year exceeds the number of deportations conducted by France (22 000) and Germany (20 000) combined over the same period.

The total number of deportations for the past five years are as follows: