Over what period of time do I need to make the required investment for a South African business visa?

The South African Business Visa is designed for foreign nationals who wish to establish or invest in a business in South Africa. One of the key requirements is making a financial investment into the business. Below is a detailed breakdown of the time frame and process for making the required investment:

1. Minimum Financial Investment Requirement
• The Department of Home Affairs requires a minimum investment of ZAR 5 million (as of current regulations).
• If the business is in a priority sector (e.g., manufacturing, agro-processing, green economy), you may apply for a waiver to reduce this amount to ZAR 2.5 million.

2. Time Frame for Making the Investment
The investment does not need to be made upfront before applying for the visa. Instead, the process works as follows:
a) Before Visa Application: Proof of Available Funds
• You must show proof that you have the required funds (ZAR 5 million or ZAR 2.5 million if waived) available in a bank account or through an approved financial instrument.
• This can be in the form of:
o Bank statements (personal or business account)
o A letter from a financial institution confirming access to funds
o A business plan with a clear budget allocation
b) After Visa Approval: Investment Period
• Once your Business Visa is approved, you will be given conditions to fulfill within a specific time frame.
• The standard period to make the full investment is usually within 2 years from the date of visa issuance.
• You must provide proof to the Department of Home Affairs that the funds have been transferred and invested into the South African business.

3. Breakdown of the Investment Process Over Time
Stage Time Frame Requirement
1. Visa Application Submission Day 1 Submit proof of available funds (not yet invested)
2. Visa Approval 4–12 months (processing time) Visa issued with investment condition
3. Investment Execution Within 24 months of visa approval Transfer and invest the full amount (ZAR 5m / ZAR 2.5m)
4. Proof of Investment Submission Before the 24-month deadline Submit bank statements, audited financials, or SARS documents
5. Compliance Check After submission DHA verifies investment before visa renewal

4. Acceptable Forms of Investment
The funds must be used for business purposes, such as:
• Purchasing equipment or property
• Paying salaries for South African employees
• Operational costs (rent, stock, marketing)
• Not acceptable: Personal expenses, buying a personal home, or passive investments like stocks.

5. Consequences of Not Meeting the Investment Deadline
• If you fail to invest the full amount within 2 years, your visa may be revoked.
• You must then leave South Africa or apply for a different visa.

6. Extensions & Waivers
• If you need more time, you can apply for an extension with a valid reason (e.g., delays in business registration).
• If investing in a priority sector, you can apply for a waiver to reduce the amount to ZAR 2.5 million.

7. Final Steps After Investment
• Once invested, you must:
o Submit proof (audited financials, bank statements, SARS documents).
o Maintain the business and employ at least 60% South Africans (another visa requirement).
o Renew the visa every 3–5 years based on compliance.

Conclusion
• Initial Proof: Show available funds at the time of application.
• Investment Period: 24 months after visa approval to fully invest.
• Compliance: Submit proof before the deadline to avoid visa cancellation.
Would you like assistance with the business plan or waiver application process?
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Home affairs upgrades digital verification system

The Department of Home Affairs has undertaken a comprehensive upgrade of its digital verification system.
To curb the lag times that often hamper its digital verification system, the Department of Home Affairs (DHA) is rolling out a “comprehensive” system upgrade.
“The upgrade is also of immense importance to supporting private sector economic growth. When this vital home affairs system is down, slow, or littered with errors, it negatively impacts upon the ability of banks, insurance companies and other financial service providers to verify clients and conduct business.”
The home affairs department is the custodian of identity, civil status and migration of citizens.

Its digital verification system, it says, enables government departments, ranging from National Treasury, to the South African Social Security Agency (SASSA), as well as businesses in the financial sector, to verify the identities of clients using biometric features like fingerprints and facial recognition against the national population register.
For example, banks use it to verify the authenticity of a person’s ID with the register at home affairs.

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Foreign national sentenced for possession of fake Home Affairs documents

Joissa Catarina Rodriguez Zunguze, a Mozambican national, has been sentenced by Westonaria magistrates court to two years' direct imprisonment for fraud, three years for the possession of fraudulent documents and 40 days’ direct imprisonment for contravention of Section 49 of the Immigration Act.
The sentences will run consecutively.

National Prosecuting Authority spokesperson Lt-Colonel Lloyd Ramovha said upon the completion of her sentences, Zunguze would be deported back to Mozambique.
She was found guilty of being in the illegal possession of 19 tampered South African birth certificates and sentenced on 27 March 2025.
Lt-Colonel Ramovha says Zunguze, who also operated under the alias "Thuli Mthembu," was arrested on 18 September 2024 during an intelligence-driven operation conducted by Westonaria Police in collaboration with the Randfontein Department of Home Affairs.
“She initially introduced herself as Thuli Mthembu and claimed to be a South African citizen,” Ramovha said in a statement.
“Nineteen fraudulent birth certificates were seized during her arrest.”

He said authorities suspected that Zunguze was part of a syndicate involving Department of Home Affairs officials.
“On 11 March 2025, Zunguze appeared in court and pleaded guilty to charges of fraud, contravention of Section 49 of the Immigration Act, and possession of fraudulent documents. Her guilty plea was accepted, and she was convicted on all charges.

“The fraudulent documents in her possession will be destroyed by the State, and the fraudulent South African ID registered under the alias ‘Thuli Mthembu’ will be canceled,” Ramovha said.
The Gauteng Hawks Provincial Head Major General Ebrahim Kadwa said: “This conviction and sentencing underscore the resolute determination of law enforcement to protect the integrity of South Africa’s public institutions and root out corruption. Let this serve as a stern warning to those attempting to exploit our systems.”

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New biometric verification system to transform Home Affairs services from April

Home Affairs has upgraded its identity verification system which aims to streamline and speed up processes.
The Department of Home Affairs announced on Monday that it is rolling out a comprehensive upgrade to their digital verification system that sits at the heart of national security as well as both public and private sector services in South Africa.
"This verification system that enables government departments ranging from National Treasury to the South African Social Security Agency (SASSA), as well as businesses in the financial sector, to verify the identities of clients using biometric features like fingerprints and facial recognition against the national population register," the department said.

The department confirmed that the use of this system will come at an extra cost to companies in the private sector and will come into effect on April 1. However public sector users, including government departments and agencies, will remain exempt from these new fees.
The Minister of Home Affairs, Dr Leon Schreiber, emphasised the importance of this upgrade, stating, “The rollout of a reliable, efficient, and secure verification service supports both the public and private sectors to improve service delivery. This marks the most significant upgrade to the Home Affairs verification service since it was launched, and will dramatically reduce waiting times whenever a client needs to verify their identity with the Department to obtain a social grant or open a bank account.”
Schreiber said: "The launch of the reformed verification system is further proof of the progress that Home Affairs is making on our journey of digital transformation to deliver dignity for all.”

Schreiber acknowledged the delays and failures of his department and further said: "This investment in our population register is not only overdue but also important for delivering on the vision for digital ID, as outlined by President Cyril Ramaphosa during the State of the Nation Address, as a secure and efficient population register forms the cornerstone of digital ID.”
The department said they have made serious efforts in ensuring that this system is less erratic, with tests showing that it is capable of dramatically faster performance and delivers an error rate of well below 1%.
The system previously left users frustrated when it used to take up to 24 hours to give responses which were most of the times erratic and required a long process of manual verification. The system often produced errors, with a failure rate of up to 50% - rendering it ineffective and past its sell-by-date.

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Home Affairs Minister’s important message to people with green ID books

Home Affairs Minister Leon Schreiber said they want to eliminate green ID books in South Africa and make it easy for people to move to more secure smart IDs.
In January 2025, Schreiber said the Department of Home Affairs wants to stop issuing green barcoded ID books in 2025.
In the future, they want to issue only Smart ID cards, an internal target they are working towards to ensure they create a more secure system.
Last year, Schreiber warned that South Africans using green ID books face a significant security risk due to their inherent weaknesses.
Deputy Minister of Home Affairs Njabulo Nzuza explained that green ID books were behind most identity theft in South Africa.

Often, stolen identities are used to access credit, loans, or apply for higher education, creating significant headaches for the rightful holder of the ID.
“With the Smart ID, it is very difficult to duplicate someone’s ID. That is why we are migrating everyone to a Smart ID card and phasing out the green ID books,” Nzuza said.

The card’s biometric features ensure that the person presenting the ID is the rightful owner, significantly reducing the risk of identity fraud.
This also enables it to be incorporated into digital verification systems and, in some cases, eliminate the need for in-person validation.
Linking biometric data with SIM cards is also being explored. This can prevent fraudulent SIM card activations and ensure only the rightful owners can use the SIM card.

Considering the security benefits of Smart IDs, it is understandable that the Department of Home Affairs wants to do away with green ID books.
Schreiber explained that after they stop issuing green ID books, they will consider targets to eliminate them and replace them with Smart ID cards.
He told News24 that the green ID book is insecure and a risk to South Africa and that they urgently want to get rid of it. However, it is not simple.
“We still have about 18 million people to reach. Our aim was 2.5 million people this year, but we are on track for 3.6 million,” he told the publication.
He said that people who still use green ID books have no reason to panic as they will remain valid for this year and beyond.
This means that green ID books remain a valid form of identification. However, users are warned that they pose significant security threats.

Collaborating with banks
The Department of Home Affairs launched its eHomeAffairs system on 7 April 2016 to facilitate easier access to government services online.
eHomeAffairs enabled South African citizens to apply and get their smart ID card or passport at a bank branch rather than a Home Affairs office.
This initiative formed part of the department’s aim to replace about 34 million green-barcoded ID books with the Smart ID Card.
It was initially available at Absa, FNB, Nedbank and Standard Bank at 12 branches in Gauteng and one in Cape Town.

Investec and Discovery Bank joined the eHomeAffairs project, and the service is now available at 30 branches in many large South African cities.
Speaking to News24, Schreiber said they want to hugely expand their collaboration with banks to make it easier for people to get their smart IDs.
He explained that they want to expand the current network of 30 bank branches to over 1,000 across South Africa.

Another focus for his department is going digital, including launching a secure digital ID on people’s smartphones.
“It will be a verifiable credential with a unique key, allowing you to verify and sign things digitally,” he told News24.
He explained that having an official in the corner of a bank with a computer, fingerprint scanner, and camera does not make sense.
Instead, he wants to integrate with the bank’s technology, creating the same trust in Home Affairs as with banks.

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