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Border town business feels pressure as immigration deadline looms

by Jannifer Libisi
June 26, 2026
in Business, Top story
Reading Time: 4 mins read
A A
The flow of people between South Africa and neighbouring countries quietly supports livelihoods and keeps local businesses trading. Photo. BMA

The flow of people between South Africa and neighbouring countries quietly supports livelihoods and keeps local businesses trading. Photo. BMA

The flow of people and traffic between South Africa and neighbouring countries quietly supports livelihoods and keeps local businesses trading in border towns like Komatipoort in Mpumalanga.

Every day, travellers stop for fuel, truck drivers buy meals, visitors book accommodation, and informal traders depend on passing customers.

That is why growing public attention to the unofficial 30 June immigration deadline has begun to raise concerns among businesses in Komatipoort and the provincial capital, Mbombela, which lies on the main highway to the border with Mozambique.

The government has said there is no official deadline requiring foreigners to leave South Africa following calls by various organisations against illegal immigration. But for businesses operating along border routes, the concern is becoming economic rather than political.

When people stop moving, local businesses slow down.

Sizwe Manonga, a hospitality operator in Komatipoort, said uncertainty is already becoming part of conversations with customers.

“We are not seeing panic, but people are asking more questions than usual. Some guests want to know if there will be protests or disruptions and whether travel plans could be affected. For a business like ours, even small changes in confidence can make a difference because people cancel bookings or postpone trips before anything has actually happened,” said Manonga.

But uncertainty can travel quickly through the local economy for towns like Komatipoort.

Situated along a major regional corridor, the town relies on transport activity, tourism, accommodation and everyday spending linked to cross-border movement. Mbombela serves as the province’s commercial hub and benefits from this flow through retail and services.

Border economies work differently

Unlike inland cities, where demand comes mostly from residents, border towns depend heavily on movement. That means economic activity is tied closely to confidence. A traveller who postpones a trip means fewer restaurant meals sold. A quieter transport route means fewer fuel stops. Lower foot traffic means informal traders sell less stock.

For small businesses already operating with narrow margins, those changes can be felt almost immediately.

A trader in Mbombela said uncertainty affects small businesses before broader economic indicators show strain.

“People sometimes think business only suffers when there is an actual shutdown or major event, but for small operators, the impact starts earlier. If customers become cautious and spend less, we immediately feel it. You delay stock purchases, reduce orders and become careful about every expense because cash flow becomes unpredictable,” said the trader who asked to remain anonymous.

The impact extends beyond informal trade

Tourism operators say regional travel decisions are influenced as much by perception as by reality.

Nomakhosi Dlamini of the Mpumalanga Tourism Agency said destinations depend heavily on instability and confidence.

“Tourism is built around people feeling comfortable enough to travel and spend money. Visitors usually avoid uncertainty, even if nothing happens. Businesses work hard to create confidence because once travellers decide to stay away, it takes time to recover those bookings and rebuild momentum,” she said.

Stability and not disruption are key for business

While immigration and border enforcement remain national policy issues, local businesses say their focus is on keeping customers moving and economic activity stable.

Many support lawful immigration processes but worry that fear and confusion could carry unintended consequences for towns that depend on regional trade.

Victoria Lodge owner Sizakele Sibisi said border communities often experience the effects of national debates before anyone else.

“Border towns are connected to movement in a way many people do not realise. When traffic slows, every part of the local economy starts feeling pressure, from accommodation and transport to informal trade and local suppliers. Stability matters because uncertainty has a cost,” she said.

Excerpt:

 

Tags: border managementIllegal immigration in South AfricaLocal economy effectsMbombela
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Jannifer Libisi

Jannifer Libisi

I’m Jannifer Libisi , a business journalist passionate about telling the stories of small businesses, entrepreneurs, and innovators. At Vutivi, I focus on covering SMMEs, highlighting their successes, challenges, and contributions to the economy

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