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    Eswatini businessman Nathan Kirsh joins Africa’s $20 billion billionaire club

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    Rwanda leads Africa in youth optimism as 91% say country is on right track

    Rwanda leads Africa in youth optimism as 91% say country is on right track

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    The billionaire who built Africa’s largest retailer from eight stores into a US$12 billion retail empire

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Migrant exodus leaves South African clothing factories struggling as labour shortages bite

Editorial Team by Editorial Team
August 6, 2026
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By Business Reporter

JOHANNESBURG: South Africa’s clothing manufacturing industry is facing mounting disruption after thousands of migrant workers fled the country following recent anti-immigrant protests, leaving factories short of skilled labour and threatening jobs across the sector.

Factory owners in Newcastle, a major textile manufacturing hub in KwaZulu-Natal, say production has slowed significantly as experienced machinists from neighbouring countries, including Zimbabwe, Lesotho and Eswatini, have left amid fears of xenophobic violence.

“We can’t immediately replace ​these skills with locals,” Alex Liu, a Newcastle factory owner told Reuters.

According to Reuters, factory owners interviewed in late July reported losing between 12% and 19% of their workforce during the unrest, with rows of sewing machines now standing idle because replacements cannot be found quickly.

The labour shortage follows protests organised by the anti-immigrant group March and March, which argued that removing foreign workers would create employment opportunities for South Africans. However, manufacturers say the departures have instead exposed a shortage of experienced garment workers.

Many of those who left were skilled sewing machine operators, whose expertise takes years to develop. Factory owners say few South Africans are willing to take the jobs because of the low wages and demanding working conditions.

The Southern African Clothing and Textile Workers’ Union estimates that about 15% of Newcastle’s approximately 15,000 textile workers left during the unrest. While some employers argue there is a genuine skills shortage, the union says poor pay remains the main reason local workers are reluctant to join the industry.

Most of Newcastle’s clothing factories are owned by Chinese entrepreneurs who manufacture garments for South African retailers. Many workers are paid on a piece-rate basis, with earnings often falling below the legal minimum wage because of low prices paid by retailers.

The industry has also come under pressure from increased labour inspections. Authorities have uncovered illegal employment practices at several factories, resulting in some manufacturers losing contracts with major retailers.

Some factory owners say they are now considering shutting down after suffering heavy financial losses.

They warn that further closures would ultimately hurt South African workers as well, undermining claims that forcing out foreign employees would protect local jobs.

Tags: #AfCFTA#south african economy#xenophobic violence
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