Pretoria – Sunday, 18 May 2025

By Dorrothy Moyo |

South Africa, once Africa’s largest and most industrialised economy, has now slipped to fourth place — overtaken by Nigeria, Egypt, and Kenya — marking a dramatic reversal from its leading position in 1995. Economists and policy analysts attribute the sustained decline to a toxic combination of populist labour policies, deteriorating investor confidence, and hostile approaches toward foreign labour participation.

One of the critical factors has been aggressive political attacks on foreign professionals and skilled workers, particularly in sectors like mining, ICT, manufacturing, and finance. Over the past two decades, successive administrations — under mounting pressure from nationalist movements — increasingly enforced rigid local labour quotas, often at the expense of business continuity and specialised expertise.

Foreign talent, once a cornerstone of South Africa’s global competitiveness, was systematically pushed out under the guise of protecting local jobs. As a result, companies faced skills shortages, stalled innovation, and began relocating operations to more welcoming environments across the continent.

These labour protectionist policies were not matched with education and training reform, leaving a gap in critical capabilities across key industries. Combined with power cuts, corruption, and policy uncertainty, South Africa’s GDP growth stagnated while others surged ahead.

The economic fallout is stark:

• Unemployment remains above 30% — the highest globally.
• Foreign direct investment has plummeted, while investor confidence in the rand and local markets continues to waver.
• Multinational firms are shifting HQs to Kenya or Nigeria, citing ease of business, talent access, and political stability.

South Africa’s drop to the fourth-largest economy is symbolic of a broader structural failure. Analysts warn that unless the government rethinks its hostile stance on foreign staffing and rebuilds investor trust, the country risks falling further behind in Africa’s economic race.

But South Africa’s Minister of Sports, Arts and Culture, Gayton McKenzie, has triggered national debate and diplomatic concern after launching an explosive tirade demanding the immediate dismissal of all foreign workers from the Department and its entities — unless they possess “special skills.”

Speaking to top officials in a fiery address, McKenzie declared that no foreign national without a special skill would be allowed to work in the Department of Sports, Arts and Culture during his tenure, insisting that all such posts must be given to unemployed South Africans.

“They must go, and you must replace them with South Africans. Even if it means the CEOs have to go so we can put CEOs that love South Africans. Nothing occupies my mind for the next three weeks like the foreigners working in your department. I want them out. I said it. I want them out. Get them out before I get you out,” McKenzie said, visibly angry.

He continued:

“South Africa’s got the highest unemployment rate. Children and adults are committing suicide because they can’t get jobs. Unemployment has the potential of causing massive riots in this country. And some of you have the audacity to hire foreigners instead of South Africans.”

McKenzie’s remarks come just weeks after his appointment and have drawn comparisons to xenophobic rhetoric, with some officials warning of legal and diplomatic repercussions. However, the Minister dismissed such concerns:

“It is not xenophobic. You are not a chairperson in Zimbabwe. You are not a chairperson in Angola. You can go to those countries and tell me if you find a South African working there without a special skill. We must leave this self-hate of our people.”

He added that no one in the room had “a special skill” that couldn’t be found locally and accused some of sabotaging unemployed citizens:

“Imagine if somebody had given your job to a foreigner. Nobody in this room has a special skill. But you have a job. Why do you deny that same opportunity to South Africans?”

McKenzie also read a message from a South African jobseeker who was allegedly sidelined in favor of a foreign national after an interview in 2021, using it as an example of systemic bias against locals.

“Some of you that hire foreigners will be gone in four weeks. I promise you that. Because South Africans are jobless. And if I have to choose between stopping this audit and keeping my job, I will resign.”

He announced a five-week deadline for CEOs, boards, and chairpersons to remove all ineligible foreign workers:

“Go and get your house in order because the storm is coming. You’ll receive letters tomorrow. Most of your entities have illegal foreigners. It stops today. Fix that thing. Because I’m coming for you if you don’t.”

McKenzie’s comments have reignited long-standing tensions over immigration, job scarcity, and economic inequality. Human rights organisations are expected to respond in the coming days.

Background: Convicted Criminal Turned Cabinet Minister

Before entering politics, Gayton McKenzie was a convicted criminal who served over 10 years in prison for armed robbery and other offences. While incarcerated, he became a whistleblower, exposing widespread corruption in South African prisons, which eventually led to his early release.

His political career began with the founding of the Patriotic Alliance (PA), a party known for its populist and nationalist stance. Despite a checkered past, McKenzie rose to prominence as mayor of the Central Karoo District before being appointed as Minister in 2024.

This latest development may cement McKenzie’s status as one of the most controversial ministers in South Africa’s post-apartheid era.

More updates to follow.