Standard Bank Group CEO Tim Sibala has issued a stark warning to South African policymakers, arguing that xenophobic violence and restrictive migration policies are directly inflating the country's cost of capital.
In an op-ed published by Financial Afrik, Sibala contends that social instability creates a risk premium that translates into higher interest rates, reduced foreign investment, and fewer jobs.
The bank chief’s intervention challenges the prevailing political narrative that strict border controls and anti-immigrant sentiment are necessary for economic protection.
Instead, Sibala posits that such measures undermine the very economic stability they claim to protect.
By fostering an environment of uncertainty, these policies signal to global investors that South Africa is a higher-risk jurisdiction, prompting capital flight and tighter lending conditions.
Sibala drew parallels to the United Kingdom’s economic experience following Brexit, citing it as a cautionary tale for South Africa.