JULY 2019 | ACMS POLICY BRIEF

CHALLENGES OF THE MIGRATION AND INTEGRATION OF ETHIOPIAN ENTREPRENEURS TO SOUTH AFRICA

YORDANOS ESTIFANOS, TANYA ZACK AND KUDAKWASHE P VANYORO African Centre for Migration & Society

‘Ihavepassedthroughalot;Ihavebeenshootmorethan3times,Iwasrobbedmanytimes.Butthiscountryhasagoodside;ifyoufailtodayyoucanriseupagain,onthenextday.’(Kibur,Vosloorus,2018)

Introduction

Thevariousroutesofmigration-resources,networks,formalandlessformalagentsandthecapacityofindividualsundertaking themigration journey -aswellas theirmotivation formigrating fromEthiopiatoSouthAfricaarenotwellunderstood.Yet,thisinquirycouldofferimportantinsightsintothebasefactorsofmigrationwithinthisethnicentrepreneurial community. This study, undertaken under the auspices of theMigrating Out of Poverty ResearchConsortium (MOOP)1 at the African Centre for Migration & Society (ACMS) explored the migration industry thatattendsthemigrationofEthiopianstoSouthAfrica.Thestudyexploredtheseissuesthroughqualitativeresearchthatincludedlongforminterviewswith40EthiopianmigrantentrepreneursinJohannesburgandDurban.Thiswas

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supplementedwithdesktopresearchandkeyinformantinterviews.The study found that a large number of Ethiopiansmigrate to South Africa to escape political and economichardship. Many settle in metropolitan areas as well as in rural towns and villages as entrepreneurs. Theirmigrationisirregularandtheynavigateextremeborderrestrictionsanddangerousterraininordertomakethejourney.Theyrelyonsmugglingaswellassocialnetworks.OnceinSouthAfricathesemigrantsfaceconsiderablerisksthatincludecrime,harassmentandxenophobicattacks.Thestudyelaboratesondetailedmigrationexperiencesof40migrants.Itconcurswithotherstudiesthatindicatethat:

• The global narratives that surround migration do not accord with the realities of the industry thatfacilitatespeople’smovement;

• The xenophobic context of migrant entrepreneurship within South Africa is severely constraining,breachestherightsoftradersandinhibitstheircapacitytocontributemeaningfullytothelocaleconomy;and

• ThemismanagementoftheSouthAfricanasylumsystemrendersEthiopianmigrantentrepreneurs-thelargest group of asylum seekers with pending applications in the country (EU Knowledge Centre onMigrationandDemography,2018)-vulnerabletobeingundocumentedandsometimestocorruption2.

Thesethreeleadingissuesthatariseintheresearchdemandtheattentionofpolicymakers.

BackgroundtorecentEthiopia-SouthAfricamigrationSouth Africa hosts the largest single concentration of (non-camp) refugees and asylum-seekers in SouthernAfrica.Ethiopiansareamongstthemostsignificantofthesemigrantpopulations.WehavenodatatoshowhowmanyEthiopiansjourneytoSouthAfricathroughirregularmeanseachyear.ButoverthelasttwodecadestensofthousandsofEthiopianshavemigratedtoSouthAfrica.SouthAfricaisadestinationcountryformanyofthesemigrantswhooftenestablishthemselvesonalongtermorpermanentbasis.Forsomewhoseekbetterfuturesintheglobalnorth,SouthAfrica isperceivedasa transitcountry.And formanySouthAfrica isaplace toseekrefugefrompoliticaloreconomiccrisiswiththeintentionofreturninghomeoncepoliticalconditionstherehavestabilized or once the migrant has established an economic base to sustain their household back home.Ethiopians are the largest group of asylum seekers with pending applications in South Africa (EU KnowledgeCentreonMigrationandDemography,2018).Thejourneyof irregularmigrationfromEthiopiatoSouthAfricacarriesveryhighrisk.Andtherearesignificantrisks present in thedestination country.They faceconsiderable limitations and threats to their livelihood andtheirlegalstatusinthecountry.DespitetherisksandthehardshipsthattheirfriendsandrelativesencounterenrouteandalsooncetheysettleinSouthAfrica,manywould-bemigrantsaredeterminedtoheadtoSouthAfrica.Migrants ostensiblyenter ahospitableenvironment in SouthAfricawhere theyenjoy agreatdealof freedomwithinamigrationregimethatisnotcamp-basedandthatallowsthemtoearnalivingalbeitwithinrestrictions.ButtheSouthAfricanasylumsystemisstruggling.Applicantscanwaitforyears–morethantenyears insomecases–forasylumseekerpermitsthathavetobeconstantlyrenewed.Thelengthoftimebeforerenewalsvaries;

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sometimesitisasshortasthreemonths.TheclosureofRefugeeReceptionCentres(RROs)inJohannesburg,PortElizabethandCapeTownfurtheraddstotheburdenofrenewingasylumpermits.Inspiteofcourtjudgmentsinallthree cases the department has still not implemented the ruling that Home Affairsmust reopen theRROs andprovideallnecessaryservices.Bribery, corruption and hostility at the remaining RRO compounds the difficulties faced by asylum seekers inensuringthattheirpermitsdonotexpire.Furthermore,researchconductedbyACMSandothersshowsthatstatusdetermination interviewsareveryoften flawed.For instance inoneyearover90%ofapplications lodgedat theMusinaRROwere rejected. According to a study conductedbyAmnesty International, the rejection rate for allrefugeeapplications inthecountrycurrentlystandsatanappalling96%(Tolmay,2018).Applicantsarethereforesuddenlytoldto leavethecountryeveniftheyhavebeenlivingandworkingherefornumbersofyears.Thishascreatedahugebacklogintheappealsystem,whichtheRefugeeAppealsBoardisunabletoaddress.ThekeylegitimatemeanstoenterSouthAricaasalowskilledmigrantistoseekpoliticalasylum.Itiswellknownthatpoliticalandeconomicmigrantsusethisroute.Ethiopiansareabletoobtainapassporttotravelbutmaynotbe granted a visa to enter South Africa - because they are suspected of enteringwith the intention of stayingillegally–manywouldbemigrantstravelirregularlyandattempttoregularisetheirstatusoncetheyarriveinSouthAfrica either throughmaking asylumapplications or through undertaking corrupt transactionswith immigrationofficials.ThisdoesnotmeanallthemigrantsthatarriveinSouthAfricamanagetoregularisetheirstatus.Manyareinstateoflimbofindingitdifficulttosecureanasylumpermit,refugeestatus,orotherresidencepermits.Andmanyhavespenttwodecadesormoreinanuncertainmigrationstatusastheirasylumseekerpermits3arerenewedforshortperiods overmany years. They have not been granted work permits or refugee status or residence permits toremainlegallyinSouthAfricaforthelongtermandyettheyliveherefordecades.Thismarginalisesthem,astheyareunabletoopenbankaccountsortoenter formalemployment.Andsotheyseeka livelihood in the informaleconomyofSouthAfrica.ThisliminalstatusalsomeanseconomicmigrantsareunabletovisitEthiopiatomaintaintheirconnectionswiththeirhomecountryandsocialnetworksthere.Respondents inthisstudyindicatedthatmostrecentEthiopianmigrantstoSouthAfricasettleandworkinurbanand rural black townships. This, on theone hand, has enabled them to learn the language and lifestyles of thetownships.Ontheotherhand,itexposesthemtorisksofvariouskinds,bothviolentandnon-violent.ManyEthiopians joinother localandforeignmigrants intheboomingfast fashion informal retailsector inmajormetropolitanareas, particularly JohannesburgandDurban.There they follow in the footstepsof earlyEthiopianmigrants who pioneered the small-scale retail phenomenon in these enclaves and who have experiencedenormousbusinessandfinancialsuccess.

MigrationjourneysandthemigrationindustryThemigrationofEthiopianstoSouthAfricacannotbereducedtoasupply-drivenhumantraffickingnarrative.Thefindingsfromthisstudyindicatethat,moreoftenthannot, itisthemigrantsorthefuturehostsofmigrantswhoareapproachingbrokers,agentsandsmugglerstofacilitatemigration.Thisconteststheargumentthatsmugglersrecruitmigrantsinthesourcecountry.

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Smugglers certainly constitute an important part of the network. And in many cases they carry a high risk.Smuggling networks are often unreliable and unpredictable, particularly in border zones. Migrants thus losecontact with anticipated hosts in South Africa; are robbed; held for ransom; deported or imprisoned. Butmigrants also develop knowledge and awareness en route as well as social networks and aspirations. Thesecontributetomigrants’ownempowermentalongthejourney.Respondents talk of the corrupt transactions that are effected asmigrants approach SouthAfrica. This occursparticularlybetweenmigrantsandimmigrationofficialsintheDepartmentofHomeAffairsaswellasofficialsintheEthiopianembassyinSouthAfrica. Intervieweesalsorecountedthatsmugglersandmigrantsoftenhavetobribeborderpoliceandimmigrationofficialstocontinuetheirjourney.Smugglingnetworks seemtobeanetworkofa smallcriminalgroups locatedatvariousbusinessnodesacrosssource,transitanddestinationcountries.However,itismorecomplexandsubtlethanitappears.Findingsfromthisstudyindicatethatmigrants,theirfamiliesandrelativesaswellasfriendsandotherrandomactorsactivelyparticipateinthesmugglingprocessbothenrouteandinsettlement.Migrationisfinancedthroughanumberofmeansandmayinvolvetheindividual,thehouseholdoreventhesurroundingvillageorrelativesinthediaspora.Smugglersareonestrandofmultidimensional,broad,flexible,unreliableandunpredictabletransnationalsocial(andcriminal)networksthathaveembeddedgeographical,temporalandstructuraldimensions.Thesenetworksandprocessesencompassthewholegamutofsocialcirclesincludingparents,familymembers,closefriendsandkinships, those who abuse religion for their own vested interests, hosts, migrants and would-be migrants,governmentofficialsatvariousbureaucraticandadministrativeranks,policeandotherlawenforcementofficers,legally established financial institutions such as banks, local and diaspora brokers and smugglers as well asregularresidents.Thestoriesshowtheinvolvementofmigrants(andtheirfamilies)fromthesendingendaswellastheirhostsfromthereceivingendincomplicatingtheoperationoftransnationalsocialnetworks.

EthiopianmigrantsinJohannesburg’sinformaleconomyAcombinationof theapartheid legacyof spatial configuration, of regulationand absenceof regulationandoftransnationaleconomiccircumstanceshavemadeitpossible,albeitatconsiderablerisk,formigrantswithsmallamounts of capital to open a business in parts of Johannesburg. The inner-city component of this tradingphenomenonhasemergedinahighlyaccessiblecitycentreofmodernistbuildingsthatwereabandonedinthe70s. Inthelate1990sthesebuildings,alongwithawell-developedtransportationsystemandgoodsupportingservices, offered the infrastructure for economic opportunity. And it was asylum seekers- turned-migrantentrepreneurs(primarilyEthiopian)whotookadvantageofthisinfrastructureandoftheretailopportunitiesthatflowedfromthecombinationofaliberalisingSouthAfricaneconomy,ChineseretailexpansionintoSouthAfrica,andadearthofretailintherestofsubSaharanAfrica.Drivenby informalshoppers,thisenterprisehastransformedspaceandpioneereda retailphenomenon in theinnercityforthesaleofcheapclothing,shoes,householdwaresandaccessories.TheseshoppersmakefrequenttripstoJohannesburgtobuyrelativelysmallquantitiesofgoodswithwhichtheytravel–mostlybybus–totheirhome countries including Mozambique, Zimbabwe, Malawi, Lesotho, Swaziland, Botswana and Zambia –countries where increasing populations fuel a demand for goods that are not available in a retail scarceenvironment.Ithasbeenestimatedthattheinnercitycrossbordertradethatcenteredintheso-calledEthiopianquarteraccountsforaturnoverofR10billionperyear(Zack,2017).Intheprocessthesemigrant

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entrepreneurs upgraded buildings, increased property prices and stimulated an intense economy attached toretail. The booming retail enterprise is a site of employment and of many add-on services in transport,accommodationandlogistics.Other sites of informal trade that attract Ethiopian migrants are small towns, rural areas and townshipssurroundingmajormetropolitanareas.Migrantentrepreneurshavetheright4totradeinSouthAfrica.Buttheyfaceenormousobstaclesingrowingtheirenterprises.Intervieweesconfirmanumberoftheseconcerns:

• Theircontributiontotheeconomyisoftenmisrepresentedasathreat;• Theyareoftensubjecttoharassmentandextortionbyofficials;• Their statusmeans they cannot open bank accounts and are dependent on cash. This increases their

exposuretoviolentcrime;and• In some instances there are indications that police officers have coordinated the looting of foreign

owned/runinformalbusinesses.In addition to these concerns there are draft business policy provisions that seek to constrain the rights offoreignerstotrade5.

ImplicationsofthestudytopolicyframingHighlightingthecontributionofEthiopiantraderstothelocaleconomyThe roleofmigrants in theeconomygenerallyand the informaleconomy inparticularhasnotbeenpositivelyrecognisedinpolicy.Ratherthefocusifanyontheireconomicactivitieshasbeenonregulationandregistration.Publicmessagesaboutsmall-scalemigrantbusinessesdonotforegroundtheirpositivecontributions.Yet Ethiopianmigrant tradershavecontributed to local economies through their retail trade.Theyhavemadeaffordablefashionavailable,stimulatedamassivecrossbordershoppingtrade,createdjobs,increasedpropertyvaluesandcreatedopportunity formanyassociatedbusinesses in support servicesand logistics to service thistrade.ItisimportantthatthemessageofmigranttraderswhocontributetotheSouthAfricaneconomybemadepublicandbecarriedbypolicymakersandpoliticianstotheirconstituencies.

ChallengingthenarrativearoundtraffickingMigration decisionmaking andmigration processes including the journey and settling in thehost country aredeeply sociallyembedded.They aremostoftennot individualdecisionsbutaredecisions andactions that aretaken within a thick social network. Nevertheless, migrants are key agents in making their own migrationdecision.Thepolicyenvironment(forexampletheTraffickinginPersonsAct,2015)needstorespondtothiswithamorenuanced viewofmigratorymovement as a flowof persons that is not linear or simply channeled viaprofessionalsmugglingnetworks.Relatives,friends,socialleaders,financiers,governmentofficialsandnetworksin the sending, transit and host countries all provide support or interrupt the movement of migrants fromEthiopiatoSouthAfrica.

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ProtectingmigrantsintransitThesociallyembeddednatureofmigrationdoesnotmeanthattherearenorisksandthattherearenocriminalnetworks that endanger the lives ofmigrants. Intensified border controls have influenced theproliferation ofirregularmigration routesand facilitation.Anewdevelopment that responds to intensifiedbordercontrolsonthelandroutetoSouthAfricaistheemergingsearoutesontheIndianOceanrim.Thesearepartlyresponsestoincreasedbordercontrolandestablishmentofanti-immigrationrulesandregulationsintransitcountriessuchasKenya and Tanzania and beyond. This presents a conundrum within a migration regime of increasedsecuritisationofnationalborders–whichcancriminalisemigrants.Whilebordercontrolsareunlikelytoberelaxedintheshortterm,theprotectionofpersonsonthemoveisanimmediateimperative.Thereisevidencethatmigrantsarewellinformedofthejourneysandriskstheymayfaceenroute.Nevertheless,knowledge building and sharing is an important policy response. In order to increase the safeguarding ofmigrants in transit, a responsible information campaign about the realities of migration and the rights ofmigrants,bothenrouteandindestinationcountries,mayassistpeopletomakeinformed,saferchoices.

ImprovingthesafetyofmigrantsinSouthAfricaThesafetyofmigrants inSouthAfrica isnotassured.Xenophobicattacks,ahostilepoliticaldiscourseandhighlevels of violent crime impact on the security of asylum seekers and other migrants. A concerted politicalcommitmenttointernationalrightsandprotocolsaroundmigration,consideredandconsistentmessagingabouttherightsofmigrantsandprogrammestoenablesocialcohesionareimportantpolicyinterventionsrequiredinthereceivingcountry.ThisalsorequireshighlevelpoliticalchampioningofadifferentfaceofSouthAfrica–asinclusionary andwelcoming. Furthermore, it requires that the country be seen to be and to be acting againstviolenceandviolentrhetoricagainstforeignmigrants.TheeffortsoftheSouthAfricaHumanRightsCommission(SAHRC)inthisregardarenoted.

UpholdingtherightsofforeignerstotradeintheinformalsectorMigrantentrepreneurshavetherighttotradeintheinformalsectorandinpublicspace.Thisrightneedstobeprotected.

Ethiopian entrepreneurs interviewed in the study experienced repression of their livelihoods throughconfiscation of goods, police corruption and removal of their right to trade in Johannesburg. In short localgovernmentmust in the first instance act to prioritise the servicing of underserviced areas of theirmunicipaljurisdictionsandtodosoregardlessofwholivesinthoseareas.Secondly,theroleoflocalgovernmentandlocalpoliceforcesmustbeunequivocalinactingwithinthelawtoprotectallresidents.Therightsofmigrantstotradeneedtobestronglyarticulatedinmunicipalinformaltradepoliciesaroundthecountry.

In a bid to grow the productivity and employment creationwithin informal business, it is imperative that thestate government takes a broad view of all informal business that has the potential for growth and forcontributingtotheeconomy.Foreignentrepreneursshouldbeembracedwithinthisbroaderview,notasdistinct

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entrepreneursorasseparatefromthewiderinformaleconomy.

IncreasingtheefficiencyoftheasylummanagementsystemWhilstmany Ethiopians aremoving to escapepoverty, and are undertaking enormous risks to do so they areforced through migration regimes to travel irregularly and as political refugees. Embracing Ethiopianentrepreneurs within the broader view that they are not distinct entrepreneurs or separate from the widerinformaleconomy,proposalsto theWhitePaperonInternationalMigration(2017) that seek to takeawaytherighttoworkmustberevised.Rather,thereisaneedforacoherent,systematicandenablingpolicyapproachtothemovementofpeopleandgoodsforeconomicbenefitaswellasforrefuge.ThisrequiresSouthAfricatoputinplacemeasures thatmake theasylumsystemmoreefficient,withabroaderunderstandingthat thecurrentscenarioisabreedinggroundforcorruptofficialstosolicitbribesfromdesperateasylumseekers.

Endnotes

1. ThismaterialhasbeenfundedbyUKaidfromtheUKgovernment.However,theviewsexpresseddonotnecessarilyreflecttheUKgovernment’sofficialpolicies.

2. ThisstateofaffairswillbecompoundediftheproposalsintheWhitePaperonInternationalMigrationtostripawaytherightsofasylumseekerstoworkareincorporatedintotheRefugeesAct(1998).

3. TheRefugeeAct(1998)regulatesasylumseekersandrefugees’rightstoenterandliveinSouthAfrica.Anasylumseeker’spermit,oftenreferredtoasaSection22permit(RefugeesActNo.130of2008),allowsasylumseekerstostayinSouthAfrica,andworkorstudy,whiletheirapplicationforRefugeestatusisbeingprocessed.TheRefugee’spermit, often referred to as a Section 24 permit (Refugees ActNo.130of 2008), officially recognises an asylumseekerasarefugee inSouthAfrica. It isvalidforaperiodoftwoyearsandhastoberenewedno lessthanthreemonthsprior to the expirydate.All Section 24permitholdersmayapply fora refugee identitydocumentandatravel document. People who have refugee status can accessmost of the same rights as South African citizens(excepttherighttovote).HavingarefugeestatusmeansthatthepersonhastheprotectionoftheSouthAfricangovernmentandcannotbeforcedtoreturnhomeuntilit isdeemedsafetodoso.However,theamendmentstotheRefugeesActthatarebeingproposedintheWhitePaperonInternationalMigration(2017)seektostripawaytherighttowork.

4. TheConstitutionoutlinesthebasisforthewayinwhichlocalgovernmentisrequiredtogoverninformaleconomicenterprise and those who participate in it. The Constitution, affords residents the right to choose one’s trade,occupationorprofession.Thisrightappliestocitizensaswellas foreignnationalswhoare inthe country legally.TheSCAhasfoundthatthisrightreferstowageearningorself-employment.TherightsofforeignnationalswhoareinthecountryillegallyareactivatedthroughSection10oftheConstitutionstatingtherighttohumandignity(SERI,2017).

5. AlthoughtheConstitutionpromotestherightsof foreignnationalstoparticipate inthe informaleconomy,recentnationalpolicies (The2013draft LicensingofBusinessesBill and the2014National InformalBusinessUpliftmentStrategy) that impact on the informal economy propose to curtail the participation ofmigrants in the economy(Rogerson,2015).Anti-foreignersentimentsareechoedinthe2014NationalInformalBusinessUpliftmentStrategy(Rogerson,2015).

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ReferencesEU Knowledge Centre on Migration and Demography Dynamic Data Hub (2018)https://bluehub.jrc.ec.europa.eu/migration/app/Rogerson,C.M.2015.UnpackingNationalPolicyTowardstheUrbanInformalEconomy,inCrush,J.,Chikanda,A.andSkinner,C.(eds),MeanStreets.SAMP,ACCandIDRC,Canada.Pp229-248Socio-EconomicRightsInstituteofSouthAfrica.2017.Migrationandtheinformaleconomy.PresentationmadeatNationalLocalEconomicDevelopmentConference,November2017.TolmayS.(2018)BarrierstoAsylumSeekersClaimingTheirRightsinSouthAfrica’sAsylumManagementSystem.A paper presented at the African Centre forMigration& Society Lunchtime Seminar Series, University of theWitwatersrand,ACMSSeminarRoomon20November2018.Zack,T.(ed),2017.CrossBorderShoppinginJohannesburg’s InnerCity.ResearchReportCommissionedbytheJohannesburg Inner City Partnership (2017), prepared by Tanya Zack Development Planners, Urbanworks andProgressusResearch,http://www.jicp.org.za/news/cross-border-shopping-joburg-cbd/

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AfricanCentreforMigration&SocietyThe ACMS is an independent, interdisciplinary andinternationally engaged Africa-based centre ofexcellenceforresearchandteaching that shapesglobaldiscourse on human mobility, development and socialtransformation. The ACMS is one of the continent'sleading institutions for research, teachingandoutreachonmigration.

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