South Africa Risks Losing Business Investment Over Visa ‘Chaos’

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European companies warn that a lack of skilled workers endangers expansion plans and jobs in a country where a third of people are unemployed.

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“We are experiencing these kind of issues,” said Klaus Eckstein, senior representative for Bayer AG, the German multinational pharmaceuticals group, in the region. It runs manufacturing plants and research and development facilities in South Africa. “We are looking to expand. This is not helping anyone. It’s not helping South Africa. It’s not helping the business,” he added.

In October the Department of Home Affairs took a step toward implementing the recommendations by asking companies that want to secure work permits for senior executives and technicians to take part in a pilot of a trusted employer program, that would prioritize their applications. If implemented fully, the changes could streamline the process. But progress has been slowed by political infighting in the Ramaphosa government and a crumbling civil service.

It is not just the number of requirements that is baffling companies. There is a “total lack of consistency in the handling of the applications: one person might get his or her visa in the foreign mission in 10 days, others will have to wait for over a year,” said the European Union Chamber of Commerce and Industry of Southern Africa. “In one family, the application of the spouse is accepted, but the main applicant does not get his or her visa, with no reason given.

“What is encouraging is the acknowledgement'' of the problem and the recommendations laid out in the Ramaphosa report, she said, before adding that she is wary of delays. “If this is not done we are looking at a situation that is going to get worse and worse to the point of catastrophe.”

 

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