President Cyril Ramaphosa’s Operation Vulindlela says that three big changes for South Africa’s visa regime are almost ready to be presented to the public for comment.

These measures should go a long way to assisting businesses to draw critical skills to the country, while also making it easier for these skills to actually get here.

This is part of a comprehensive review of the visa regime and immigration changes, it said, which the Department of Home Affairs (DHA) will gazette in August for public comment.

The three key changes include:

• Creating new visa categories for remote workers and start-ups;

• Establishing a points-based system for work visa application routes;

• Introducing a trusted employer scheme.

These three changes would work alongside reforms that have already been implemented, the group said, which includes expanding visa waivers to more countries and publishing a revised critical skills list for priority positions.

“Operation Vulindlela reforms to the visa regime achieved a critical milestone with the completion of the work visa review and publication of a detailed implementation plan by the DHA,” it said.

Among the coming changes, the group said that other key policy and process updates that will be introduced include streamlining document requirements for work visa applications to ease the burden on applicants.

These changes which are currently awaiting approval by the Office of the State Law Advisor before they can be published for public comment.

In addition to the coming changes and those already in place  Operation Vulindlela said that the DHA is also expanding its visa waiver programme to additional countries. 

South Africa currently waives visas for visitors from about 132 countries and is in negotiations to extend this to a further ten countries. 

“Where countries do not have a visa waiver, they have been included in the eVisa system rollout,” it said.

South Africa’s eVisa platform currently covers 34 countries, up from an initial 14 countries. This means that visitors from 164 countries potentially up to 174 have or will have eased access into South Africa, accounting for countries with access to the eVisa platform and those where visitor visas have been waived. 

Over the next quarter, the group said that it will support the implementation of the recommendations made in the work visa report.

“Operation Vulindlela will continue to work with the DHA to ensure that these reforms are implemented swiftly and to a high standard,” it said.

South Africa’s current visa regime has been described by immigration companies as being a nightmare to work with, while the processes have been called chaotic.

While a backlog peaking at over 62,000 at the the start of the year and only expected to be cleared by mid-2024 workers have not been able to enter the country, and businesses have been unable to draw in the necessary skills.

The promised reforms of expanded visas, easier processes, and new systems have been welcomed however, doubts remain about the efficacy and ability of the DHA to implement them.

South Africa faces an ongoing youth unemployment crisis. But as many employers struggle to fill the vacancies that are available, it`s clear the problem is bigger than a shortage of jobs. 

The number of unemployed people in South Africa increased to 7.9 million in the second quarter of 2023, from 5 million a year ago. Youth unemployment between the ages of 15 and 24 and 25 and 34 years recorded the highest unemployment rates of 60.7% and 39.8%, respectively. Just under 10% of graduates are unemployed and a further 20% of learners from other tertiary institutions are unemployed.

These figures that were recently published by Statistics South Africa are depressing, and even more so when poverty figures are considered. About 18.2 million people in South Africa live in extreme poverty. These are people who live on less than $1.90 (R36) per day.

Youth unemployment must be seen within the context of the future of South Africa. If 34.2% of those within the ages of 15 and 24 are not in employment, education or training, what future are we building? 

How will the country produce more businesspeople like Michael Jordaan, who became the CEO of the largest bank in his mid-thirties, or young heads of states as seen in Europe, when potential maverick are steeped in poverty and lack education or training? 

How will South Africa compete with other countries in areas such as technology, science and innovation when the youth are not given the same opportunities as their peers in other countries?

Mismatch

And yet there are strange dynamics in the labour market that do not correlate with the high unemployment rate, which currently sits at 36.2%.

Almost 5 million young people are unemployed; yet, there are companies struggling to fill positions in sectors such as manufacturing and mining, where non-skilled or semi-skilled young people are required. Perhaps younger people no longer want to become rock drill miners or work in heavy-duty manufacturing factories, but the alternative is poverty, which has been on the rise, exacerbated by Covid-19. Call centre operators, that typically require low-skilled workers, are seeing high rates of absenteeism due to employees not coming back to work.

Where companies are in desperate need of workers and cannot find them, the impact of automation on employment - already notable - will be even greater. Where possible, companies are already automating what can be automated: In mining, mechanising is rapidly being adopted and machinery is replacing workers. Similarly, vehicle manufacturing body shops are increasingly being run by machines. Pretty soon, call centres will in all likelihood replace at least some of their workforce with meta-humans and AI, to name a few. 

And for a country like South Africa, the ongoing shift from human labour to machinery will be deeply problematic, since a troubled education system and an already concerning skills gap means not enough workers are able to seamlessly transition from manual labour to coding, engineering or even servicing machines.

The migration factor

Another factor influencing the mismatch between skills and jobs is the concentration of economic activity in some key areas. Economic activity in the North West is dominated by the mining sector, for example, which tends to employ workers and seek suppliers from the local communities. Miners are finding it challenging to employ new younger workers; yet, the unemployment rate in the province is one of the worst in the country, at 38.4%. 

If the expanded definition of unemployment is considered, which includes mainly discouraged workers, the unemployment rate is the worst in the country at 53.5%. Therefore, more than half the working population in the North West is unemployed.

This is a crisis.

Meanwhile, the lure of Johannesburg, and the sense of hope it offers to many, could be a contributing factor to the low interest in employment in some sectors in poorer, less urban cities or towns in the country. This is exacerbated by poor management of numerous municipalities, which drives those who can leave to do so. But it is a vicious cycle, as municipalities that are badly managed, dysfunctional or corruption-ridden rob communities of the opportunity to become economically active. 

A lack of investment in critical infrastructure such as roads, hospitals, schools and cultural amenities discourages young people from staying and deters them from moving to these municipalities. 

Young people might want different types of jobs than the labor-intensive jobs found in mining or manufacturing, but even if they don’t, the cost of living in remote, under-developed or dysfunctional towns is higher than living in squalor in a big city. The latter gives them hope; the former, despair. 

And yet neither option is good enough. We have failed the custodians of the country`s future

Mining mogul Patrice Motsepe has called on African nations to consider the implementation of preferential visas for entrepreneurs.

Motsepe made the call during an interview at the 15th Brics summit`s business forum on Tuesday in Sandton. The billionaire entrepreneur drew attention to the idea that has been in circulation since 2013.

His remarks came as part of discussions at the Brics business forum, on the sidelines of the three-day Brics summit which ends on Thursday. He highlighted the need to expedite the visa application process, acknowledging the legitimate concerns of governments regarding maintaining sovereignty while promoting economic growth through entrepreneurship.

Motsepe emphasised:

We must expedite the visa process. While we recognise and support the necessity for governments to manage their borders, these are opportunities that have been discussed for a considerable period.

He also advocated for immediate action, suggesting that preferential access to visas could be extended to businesspeople from China, India, and Russia - the  key players within the Brics bloc. 

As the inaugural chairperson of the Brics Business Charter in SA, Motsepe reflected on the growth of trade between the country`s CEOs and their counterparts in other Brics nations. He noted that trade between South Africa and Brics countries in goods and services began in 2013, with just under $100 billion, with an ambitious goal to reach $400 billion.

Motsepe acknowledged the strategic significance of the Brics partnership, noting that while the European and US markets were substantial, the formation of Brics had significantly bolstered South Africa`s economic ties with countries such as India, China, and Brazil.

`From a Brics  perspective, granting visas to entrepreneurs from these countries would enable them to explore business opportunities not only in South Africa but across the continent,` Motsepe said, characterising India, China, and Brazil as `remarkable destinations` for business endeavours.

Stella Ndabeni-Abrahams, the minister of small business development, voiced her support for the proposed Brics visas for entrepreneurs. 

Speaking to News24, Ndabeni-Abrahams emphasised the importance of creating a conducive environment for businesses to thrive by addressing regulatory obstacles, including those related to visa issuance.

`To facilitate economic growth within the Brics alliance, it`s imperative that we address regulatory barriers, including those concerning visas.` 

Ndabeni-Abrahams elaborated:

These matters are currently under discussion among the home affairs ministers of Brics member states.

President Cyril Ramaphosa sought to allay global jitters ahead of the BRICS summit. More than 30 heads of state will attend the 15th BRICS summit in Johannesburg this week. Addressing the nation, President Cyril Ramaphosa said South Africa supports the expansion of BRICS members in order to create a more balanced global order. He stressed that the country would not be drawn into a contest between global powers. President Cyril Ramaphosa sought to allay global jitters ahead of the BRICS summit and affirmed South Africa`s neutrality in the shifting global power dynamics. On Sunday night, the president addressed the nation on South Africa’s foreign policy and the upcoming BRICS summit.

On Sunday night, the president addressed the nation on South Africa’s foreign policy and the upcoming BRICS summit.

`We will not be drawn into a contest between global powers,` Ramaphosa said, adding that the country was committed to a policy of non-alignment.

“We have resisted pressure to align ourselves with any one of the global powers or with influential blocs of nations. During the Cold War, the stability and sovereignty of many African countries were undermined because of their alignment with major powers. This experience has convinced us of the need to seek strategic partnerships with other countries, rather than be dominated by any [one] country.”

The president said while some of the country’s detractors preferred overt support for their political and ideological choices `we will not be drawn into a contest between global powers`.

He said instead, South Africa strived to work with all countries for global peace and development.

“It is for this reason that SA is a member of the Non-Aligned Movement, a forum of some 120 countries that are not formally aligned with or against any major power bloc.

“Our decision not to align with any one of the global powers does not mean that we are neutral on matters of principle or national interest,” Ramaphosa said. 

“Our nonaligned position exists alongside our active support for the struggles of the oppressed and marginalised people in different parts of the world.

“We always believed that the freedom that we won and the international solidarity from which we benefitted immensely imposes a duty on us to support the struggles of those who continue to experience colonialism and racial oppression; that is why we will continue to support the struggles of the people of Palestine and Western Sahara,” the president said. 

Ramaphosa gave his full support to the expansion of BRICS member countries, saying an expanded BRICS would result in a more balanced global order. 

During the live televised address, Ramaphosa said 20 countries had applied for BRICS membership and several others had expressed an interest in becoming part of its family.

“South Africa supports the expansion of the membership of BRICS. The value of BRICS extends beyond the interest of its current members,” he added. 

Currently, Brazil, Russia, India, China and South Africa form the BRICS community, which makes up a quarter of the global economy, accounts for a fifth of global trade and is home to 40% of the world’s population.

More than 30 heads of state are in South Africa for the 15th BRICS Summit, which starts on Tuesday and ends on Thursday. 

Ramaphosa had indicated during an ANC meeting in Joburg on Saturday that Russian President Vladimir Putin would join the summit virtually. 

“Together the BRICS members have used their collective voice to call for a world that is more equitable, balanced and governed by an inclusive system of global governance,” said Ramaphosa on Sunday. 

He added that being a member of BRICS had created positive opportunities for South Africa, enabling the country to develop a strategic relationship with China, the second biggest economy in the world.

Based on the relationship between the countries, Ramaphosa said he would be signing several agreements with President Xi Jinping. 

In 2025, South Africa is set to assume the presidency of the G20 group of nations and will be the first African country to host a G20 summit on African soil