South Africa President Cyril Ramaphosa has announced plans to revamp the country’s work visa system as part of a larger effort to raise $110 billion in investments by 2028. Speaking at the fifth SA Investment Conference, Ramaphosa outlined measures that would streamline application requirements, reduce processing times, and expand the e-visa system to include additional countries and visa categories.
Ramaphosa stated that the government would introduce a Trusted Employer Scheme for qualifying companies and establish a points-based system to provide more flexible pathways for skilled applicants, in line with global best practices. He also announced the expansion of the e-visa system to cover an additional 20 countries, on top of the 14 countries that are currently eligible, and extend it to include new visa categories such as study, business, and intra-company transfer visas.
The overhaul of the work visa system comes after tens of thousands of foreigners working or intending to work in South Africa faced the possibility of having their visas canceled due to processing delays. Business Leadership South Africa reported that as of the end of March, the Department of Home Affairs was dealing with a backlog of 62,692 visa applications.
Bringing development & creating jobs is the true measurement of the success of these 5 conferences. Investors are keenly aware of the impediments to faster growth and development, but they also see the progress that is being made in fixing these problems.https://t.co/Cm0fVkD8OE
— Cyril Ramaphosa 🇿🇦 (@CyrilRamaphosa) April 13, 2023The move by President Ramaphosa has been welcomed by Indian business conglomerates, who have long complained about delays in obtaining visas for their employees. The India Business Forum, which represents around 150 Indian companies in South Africa, lauded the decision, stating that it would create more employment opportunities and foster investments in the country.
Ramaphosa also announced the launch of a new investment drive with a target of garnering investments worth R2 trillion (approximately $139 billion) over the next five years. In 2018, Ramaphosa had set a target of raising R1.2 trillion (approximately $83 billion) in five years to drive job creation and economic growth. He noted that so far, the government had attracted R1.14 trillion (approximately $79 billion) in investment pledges.
Ramaphosa acknowledged the challenges faced by South Africa, including years of under-investment, mismanagement, and corruption in sectors such as electricity, rail, and logistics. He emphasized that the reforms in the work visa system would enable the country to attract skills and investment, create jobs, and protect and promote the employment of South Africans.
Praveer Tripathi, President of the India Business Forum, welcomed the announcement but expressed a preference for a visa on arrival system. He also commended Ramaphosa’s call for investors to contribute to job creation and employment promotion for South Africans, stating that easing the visa regime would accelerate these efforts further.
The overhaul of South Africa’s work visa system is seen as a positive step towards attracting foreign investment, addressing processing delays, and creating more employment opportunities in the country. With the expansion of the e-visa system and introduction of new visa categories, South Africa aims to position itself as an attractive investment destination while protecting the employment of its citizens.