The South African visa regime has become a significant hindrance to businesses, making it difficult to attract foreign investment and expand existing businesses. This has resulted in a substantial barrier to economic growth and job creation.
Identifying Business Challenges
The Western Cape Government Department of Economic Development and Tourism conducted a survey in November 2022, aiming to identify the specific challenges that businesses are facing. The findings were startling, with 78% of respondents rating the immigration application system as “very poor” compared to other countries where they have operations.
A total of 133 responses were collected, representing sectors such as ICT, technology, software services, tourism, finance and business services, manufacturing, agriculture, agri-processing, and business process outsourcing. The survey revealed that 26% of businesses moved their operations overseas due to difficulties in navigating the national visa system, subsequently costing South Africa countless job opportunities.
The Reason behind Visa Requirements
The primary reason for businesses requiring visas was to employ critical skills that are unavailable in South Africa, or to hire foreign staff. The top three visa types applied for were work visa (19%), critical skills work visa (18%), and immigration visa (15%).
Challenges in Visa Application Process
The main issues identified in the visa application process were delays in approval (17%), lack of feedback on applications (14%), and absence of an escalation mechanism for complaints (10%). These challenges have had significant consequences on affected businesses.
Consequences of Broken Visa System
Time delays (25%), cost implications (22%), and inability to hire required skilled workers (21%) were identified as the most significant impacts. To address these challenges, businesses have resorted to moving operations abroad (26%), employing fewer staff (17%), and scaling down operations (17%).
The Need for Action
These findings highlight the urgent need for decisive action to resolve the well-known issues within the South African visa system. Though President Cyril Ramaphosa has made commitments to address these concerns, tangible changes must be implemented to foster economic growth and job creation.
The Way Forward
The Western Cape Government is eager to assist in any way possible to retain and expand existing businesses and attract necessary investments. By working together, the South African government and businesses can overcome the obstacles created by the current visa regime, ultimately benefiting the economy and the residents of the province.
The broken visa system is not only a deterrent to investment but also a barrier to economic growth. It is crucial for the South African government to take swift action to rectify this situation, enabling the country to thrive and create more job opportunities for its citizens. Only through collaboration and decisive action can the challenges faced by businesses be adequately addressed, ensuring a brighter future for the nation as a whole.
