Letter From the CEO: August/September 2024

Introduction

The first 100 days are over for our new Minister of Home Affairs in South Africa, Dr Leon Schreiber. Despite challenges, the GNU remains steadfast, and spring has finally arrived in the Western Cape. A small tingle of excitement graces the streets of South Africa as we cautiously embrace a more positive outlook once again.

Embracing Spring in the Western Cape

Last weekend, I had the pleasure of cycling with a close friend in the Overberg region of the Western Cape. After enduring a long, cold, and very wet winter, spring has finally arrived. The vibrant yellow of the canola fields contrasts beautifully with the lush green grass and endless cornfields, dotted with hundreds of lambs—a truly breathtaking sight.

The Overberg, a hilly farming area, features charming villages every 50 kilometres and is flanked by high mountain ranges to the north. In spring, it stands as one of the most beautiful spots in South Africa, if not the world.

Minister Schreiber’s Vision and Achievements

Apparently, I am not the only one who believes South Africa is the most beautiful country on earth. Our new Minister shares similar sentiments. In a recent speech before international investors hosted by RMB and Morgan Stanley, he remarked on digital nomads (remote workers):

“In return, they get to live in the most beautiful country on earth for half of the year, without any mindless red tape or burdensome tax requirements.”

Dr Schreiber’s first 100 days can be described as impressive. He demonstrates a clear vision, aiming for a significant percentage of economic growth through his department. His focus on transitioning from paper-based processes to automation and reducing discretion reflects practical policy changes. Above all, he communicates these initiatives effectively to the public. In all his speeches, posts, and media statements, he consistently emphasises economic growth and job creation.

If he continues on this path, the public—and perhaps even some department employees—might start to believe in his vision. I was even tempted to disable my Google News alerts on Home Affairs due to the abundance of positive articles being published.

Progress in Reducing Visa Backlogs

Dr Schreiber is full of energy and vibrancy, seemingly backed by his department, although it is still early days. He benefits from a task team established by his predecessor, which has addressed the 300,000 outstanding applications. In just a few months, the backlog was reduced by 50%, yielding measurable results. Many our clients have received positive outcomes in recent weeks.

Introducing the Points-Based Work Visa

Looking ahead, we can anticipate the implementation of a points-based work visa. While it is already included in the legislation, the scorecard has yet to be published. Minister Schreiber recently indicated that the draft regulations are on his desk and that the scorecard will be released to the public by mid-October 2024. In addition to other criteria, there will be a minimum salary threshold, aligning South Africa with many other countries.

Here are his own words:

“The points-based work visa is going to revolutionise the South African economy. Gone will be the days when highly skilled workers had no pathway to help build this country if their skills happened to not be included in the arbitrary critical skills list. … Going forward, workers who have job offers in South Africa will also be able to apply based on their own unique combination of qualifications, work experience, language skills, and the salary level they have been offered. If a company offers a person a salary of R1 million per year because they cannot find the requisite skills in South Africa, they are doing so because that person has a critical skill.”

A New Approach to Critical Skills

Unlike his ANC predecessors, Minister Schreiber offers a fresh perspective:

“I have been very clear that it is time to acknowledge that it is the job market, and not bureaucrats, that determines who has a critical skill.”

We will need to evaluate the scorecard once it is published and observe the practical implementation. The intended digitalisation of the Department is not a new idea; the real test will be whether he can successfully execute it amidst constant budget constraints and underfunding.

Innovations in Immigration Policy

The introduction of the remote worker visa marks a significant step forward. However, for it to be fully effective, tax legislation must be amended—a major criticism I raised six months ago. Currently, South Africa is not competitive in attracting remote workers due to these outdated tax policies.

Updates on African Immigration

Recent developments in African immigration highlight significant economic reforms and labour mobility. Ethiopia floated its currency in July 2024, aiming to attract foreign investors and boost labour migration through increased economic opportunities.

In Nigeria, the creation of ‘digital free zones’ in August is designed to draw global tech and finance businesses, offering incentives to skilled workers across Africa.

Angola’s new tax reforms in the oil and gas industry are set to attract foreign investment and skilled professionals, further strengthening its energy sector. These changes signal a broader push towards innovation, investment, and increased intra-African labour mobility.

Challenges Ahead: Appointment System and Tax Legislation

Not all developments are positive. The appointment system introduced by some overseas missions is resulting in excessively long waiting times. For instance, The Hague currently has availability only in March 2025, making it unclear how skilled applicants can apply for their visas in a reasonable timeframe. For more in-depth information, please view this short video.

A Hopeful Spring for South Africa

Nevertheless, I believe that our springtime feelings of hope are not solely a product of warmer temperatures. Under Dr Leon Schreiber’s leadership, there is genuine progress and optimism for the future of South Africa’s immigration landscape and overall economic growth.

While challenges like cumbersome visa appointment systems remain, the positive momentum cannot be ignored.

As we await the scorecard’s release and observe the practical implementation of these initiatives, there is genuine progress and optimism for the future of South Africa’s immigration landscape and overall economic growth. The journey ahead is long, but with the right policies in place, springtime feelings of hope may soon translate into tangible progress for the continent’s immigration and economic landscape.