Woes within South Africa’s visa processes have left businesses and
skilled workers in limbo, hurting investment and business activity as a
result.
Recently, French diplomats warned that South Africa’s strict visa requirements are driving investors away.
In
addition to this, Western Cape Provincial Minister of Finance and
Economic Opportunities, Mireille Wenger, said that a key obstacle
attracting investment and expanding business is “the broken South
African visa regime.”
“To facilitate foreign investment,
companies need to be able to easily access South Africa and those who
apply for critical skills visas typically help to develop new and
existing sectors, in line with international best practice or by helping
to new industries through skills development,” said Wegner.
Companies
aiming to operate in the country must invest a minimum of R5 million
and ensure at least 60% of their employees are South African.
However,
applying for a work visa has often been described as a lengthy and
complex process, exacerbated by an inefficient paper-based system that
may take months.
Once those abovementioned boxes are ticked, the process is likely to be stalled by an existing backlog in visa applications.
Recently,
the Western Cape government said that over 4,500 jobs and R1.6 billion
in economic value are at risk of being destroyed due to continued
backlogs and delays at Home Affairs in processing visas.
“These
delays relate to processing and finalising of a small number of critical
skills, spousal work visas, spousal, life partner, and permanent
residency visa applications for training experts, who are needed to
upskill and train employees in the sector, thereby enabling the creation
of more South African jobs,” said Wegner.
The Western Cape
Government previously conducted a survey to gauge the effectiveness (or
lack thereof) of South Africa’s visa application process.
They
engaged with around 150 business in sectors including
ICT/Technology/Software service, tourism, finance and business services,
manufacturing, agriculture and business process outsourcing.
A
critical finding of this survey was that 78% of respondents rated the
immigration application system in South Africa as “very poor” compared
to other countries the respondents have operations in.
Another
finding was that 26% of businesses moved their operations overseas as a
result of the serious challenges they faced with the national visa
system.
Other key results of the survey include:
Reasons for Visa Requirement:
Work purposes, particularly for employing critical skills not
available in South Africa, and for businesses needing to employ foreign
staff.
Top Three Visas Applied For:
Work visa (19%)
Critical skills work visa (18%)
Immigration visa (15%)
Top Three Complaints/Issues with Visa Application System:
Delays in approval process (17%)
Applicants not receiving feedback on applications (14%)
Lack of an escalation mechanism for complaints (10%)
Impact on Businesses Affected by Visa Application System:
Time delays (25%)
Cost implications (22%)
Inability to hire required skilled workers (21%)
Top Three Measures Taken by Respondents to Address Challenges:
Moving operations abroad (26%)
Employing fewer staff (17%)
Scaling down operations (17%)
“The
fact is that the current visa regime is a significant deterrent to
investment and the expansion of existing businesses, costing jobs and
economic growth right at a time when we can ill-afford to lose either,”
said Wenger.
In hopes of easing these constraints recent
regulations replaced the highly-contested critical skills list with a
new points-based system and introduced the remote work visa class.
This
was received positively by businesses in South Africa, with the
Consumer Goods Council of South Africa saying that they should ease the
administrative burden that international companies with businesses in
the country face when hiring skilled foreigners.