Lessons from the Brink — Rule of Law and Economic Resilience

What did we learn from this week's protest campaigns? Once again, it appears South Africans did what they do so well: we pulled back from the brink. Despite widespread anxiety, we saw only isolated incidents of disruption, and the scheduled marches were mostly orderly.

In Cape Town, it was largely business as usual at major workplaces, though the threat of instability undeniably left a mark on our small business sector.  Many township shops and SMMEs—particularly those owned by foreign nationals—chose to shut down or reduce trading hours for the day.

Where friction or intimidation did surface, law enforcement was quick to respond. Crucially, the day served as a showcase of civic cooperation. We witnessed real-time collaboration between the South African Police Service (SAPS), municipal law enforcement, and the private security sector. Parallel to this, civil society and grassroots non-profit organisations worked within communities to defuse tensions and uphold public order.

We learned that we can cooperate remarkably well when the stakes are high, coming together decisively in times of crisis.

We learned another lesson too, and we would be kidding ourselves if we think the underlying problem has gone away. The friction points fueling community frustration remain visible to all. Unless we collectively confront the systemic economic and regulatory bottlenecks driving this discontent, we will continue to manage symptoms rather than cures.

In recent weeks, a noticeable number of foreign nationals chose to temporarily withdraw or return home, fearing potential reprisals. Their anxiety underscores how fragile our social cohesion can feel during times of economic hardship.

Let us be clear: international migrants come to our region in search of opportunity, often filling critical skill gaps required by local manufacturers or actively creating micro-enterprises that drive localised employment. For our economy to thrive and maintain its global competitiveness, we cannot isolate ourselves from the world.

However, sustainable economic growth is entirely dependent on the rule of law. The state has an absolute obligation to ensure strict labor law compliance, secure borders, and an even playing field for all operators. Business requires efficient, predictable, and fair regulation to thrive. Just as our global export trade relies upon shared, enforceable rules of engagement, our domestic market needs the government to enforce compliance equally.

Ultimately, we learned that we must do better to ensure we don't keep repeating the same cycle. We must apply that same collaborative energy on display this week toward fixing the structural compliance gaps that cause these tensions in the first place. 

John Lawson, CEO of the Cape Chamber of Commerce and Industry