Finance Minister Enoch Godongwana Warns Migration is Straining South Africa’s Economy and Services

Johannesburg – Finance Minister Enoch Godongwana has raised strong concerns about the impact of migration—both legal and illegal—on South Africa’s already strained economy and public resources. Speaking at the Metro Trading Services Reform Summit, the minister warned that urgent policy interventions are needed to safeguard economic stability.

According to Godongwana, 51 out of every 100 migrants settle in Gauteng, adding significant pressure on provincial resources such as housing, healthcare, and infrastructure. He cautioned that without firm management of migration and urbanization, South Africa could face deeper socio-economic challenges.

“People must come to our country legally. The ones sitting here illegally should surely be sent home. Our resources are limited, and our economy has been declining since 2014,” Godongwana stressed.

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Economic Decline and Population Growth Pressure

The finance minister highlighted that South Africa’s per capita income has been steadily declining over the past decade. He linked this trend not only to weak economic growth but also to the burden placed on national and municipal services by increasing migration and rapid urbanization.

Godongwana noted that many informal settlements and squatter camps emerge as a result of uncontrolled population movements, creating competition for housing and basic services. This, he argued, has left long-time South African residents feeling sidelined.

“Urbanization is fueling the crisis. People move into squatter camps, and because they demand services quickly, they often get ahead of others who have been waiting for years,” he explained.

Balancing Humanitarian and Economic Realities

While acknowledging the humanitarian dimension of migration, Godongwana urged political parties and policymakers to engage in a frank and objective discussion on how to balance compassion with economic realities.

He emphasized two urgent priorities:

1. Clear migration policies to manage population inflows fairly and legally.
2. Revenue strategies to ensure municipalities and national government can sustainably deliver services to a growing population.

“We cannot avoid the discussion. How will services be rendered if revenue does not increase? Municipalities cannot raise enough money on their own, and national government is already stretched,” he warned.

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A Growing National Debate

Godongwana’s remarks add to a wider debate in South Africa over migration, urbanization, and economic decline. While some critics fear the rhetoric could fuel xenophobia, the minister clarified that his call was not against foreign nationals but about ensuring legal migration and sustainable governance.

The speech is expected to spark robust political and economic debate as the country grapples with sluggish growth, rising unemployment, and service delivery challenges.