South Africa's Economy Hindered by Lack of Critical Skills

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Economy News

South Africa,Economy,Critical Skills

A backlog of 74,000 visa applications at the Department of Home Affairs is hindering the South African economy, particularly in the scarce skills category. Efforts by the government to improve access to scarce skills visas have not been sufficient. The inability to fill positions is preventing companies from investing and expanding, which would have a significant impact on employment and the overall business environment.

A lack of critical skills is holding back the South African economy, and we are not solving the problem as fast as we should be. There is a backlog of 74 000 applications for all kinds of visas at the Department of Home Affairs according to an official quoted by Bloomberg last month, many of those in the scarce skills category.

This despite concerted efforts by government, led by the Operation Vulindlela programme, to drive implementation of policy that will substantially improve access to scarce skills visas. The backlog is staggering, a number in line with the headcount of some of South Africa’s biggest companies. If those skills were to suddenly be working in our economy, the impact would be significant. The fact that companies can’t fill the positions means they can’t invest and expand. Expansion would enable much further employment, more tax to be generated, and the overall business environment to be greatly improve

 

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