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This is report is the most comprehensive study yet of the contribution of migrant and refugee entrepreneurs to Cape Town's local economy. The survey of over 500 entrepreneurs engaged in trade, services and manufacturing in different areas of the city dispels some of the more prevalent myths that o#en attach to the activities of migrants. The vast majority are not 'illegal foreigners', but have a legal right to be in South Africa and to run a business. Most are highly motivated individuals who enter the informal economy to earn revenue to support themselves, their families, and because they have a strong entrepreneurial motivation. Contrary to the claims of South African competitors, the vast majority are not successful because they are engaged in shadowy business practices. What emerges from the survey is that while migrant entrepreneurs undoubtedly have strong social networks, their businesses are highly individualistic in terms of organization, ownership and activity in a competitive business environment. This report demonstrates their positive economic contributions to Cape Town and examines the challenges they face in running a successful business operation in the city. It goes beyond the rhetoric of inclusion to demonstrate with hard evidence exactly why migrant and refugee entrepreneurs should be accepted as an integral and valuable part of the local economy.
This report examines the food security status of Zimbabwean migrant households in the poorer areas of two major South African cities, Johannesburg and Cape Town. The vast majority were food insecure in terms of the amount of food to which they had access and the quality and diversity of their diet. What seems clear is that Zimbabwean migrants are significantly more food insecure than other low-income households. The primary reason for this appears to lie in pressures that include remittances of cash and goods back to family in Zimbabwe. The small literature on the impact of migrant remittances on food security tends to look only at the recipients and how their situation is improved. It does not look at the impact of remitting on those who send remittances. Most Zimbabwean migrants in South Africa feel a strong obligation to remit, but to do so they must make choices because of their limited and unpredictable income. Food is one of the first things to be sacrificed. Quantities decline, cheaper foods are preferred, and dietary quality and diversity inevitably suffer. This study found that while migrants were dissatisfied with the shrinking job market in South Africa, most felt that they would be unlikely to find work in Zimbabwe and that a return would worsen their household's food security situation. In other words, while food insecurity in Zimbabwe is a major driver of migration to South Africa, food insecurity in South Africa is unlikely to encourage many to return.