• Leon Schreiber plans to put in place points-based system
• Minister says he will also act to resolve nomad visa confusion
South
Africa must fix a dysfunctional work permit system or sacrifice
economic growth, the country’s new Home Affairs minister said, pledging
to resolve a crisis that employers say limits investment.
A
byzantine application process that can extend beyond a year has
contributed to a backlog of hundreds of thousands of applications, while
miring his department in lawsuits from people demanding rulings on
their submissions.
That’s been accompanied by a national debate where
foreigners are routinely accused of stealing South African jobs, in a
country with an unemployment rate of more than 30%. That’s despite the
Treasury saying a dearth of skills is the second-biggest threat to the
economy after power cuts, and skilled workers create jobs for those less
qualified.
A German-South African business association, which
represents companies including Volkswagen AG, has said the chaos
threatens operations that support 100,000 jobs.
Won’t Grow
“This
country’s economy will never grow if we don’t open our doors to people
who want to lawfully come here and make a contribution and help us get
on track,” said Leon Schreiber, appointed as minister last month in a
coalition government dominated by his Democratic Alliance party and the
bigger African National Congress.
“It is one of the jobs of
political leadership to go out and actually make these kind of arguments
to say this is where the problem actually is,” he said in an interview
on Wednesday. “Don’t scapegoat and include people who are trying to
actually help us build the country.”
One of the 35-year-old
minister’s priorities includes adopting a points system to allow skilled
workers to take up employment based on their qualifications, job offers
and income level.
Another is resolving confusion around a so-called
nomad visa, which is designed to cater to remote workers who want to
base themselves in South Africa. It became law earlier this year but has
frustrated potential applicants because the requirements are unclear.
“The
points based system is, I think, fundamental to overhauling the whole
system because it’ll do away with these different requirements for
different categories,” said Schreiber, who is the second-youngest member
of the 34-member cabinet. “It will streamline that whole process.”
He
also said repairing “the hostile” relationship between Home Affairs and
permit applicants is key to turning the department into “an economic
enabler” focused on job creation.
“This is the only department that
has the capability to, within a relatively short period, bring in the
skills that companies need,” he said.
Angry Tourists
In addition
to the work permit problem, Schreiber said he will focus on complaints
about getting tourist visas, with some visitors being deterred by the
difficulties in securing permission to visit South Africa.
“There’s
huge markets in China and India that are sending a lot of complaints
through about how those processes are conducted,” he said.
To tackle
the work permit problems the department is working with the help of
resources from Business Unity South Africa, a grouping of the country’s
biggest businesses, and Deloitte LLP, he said. He will meet with a unit
of FirstRand Ltd. for further assistance. Schreiber also plans to revive
the country’s Immigration Advisory Board.
Still, Schreiber touted some recent success.
Since
April, the backlog of work permit, spousal visa and permanent residence
applications has been cut by 30% to about 213,000, he said.
Home
Affairs could “be central to addressing the skills shortage in South
Africa,” he said. “That is not a curse. It’s a great opportunity.”