On 9 October 2024, the Minister of Home Affairs, Leon Schreiber, announced significant changes to South Africa’s visa system. The Department of Home Affairs (DHA) gazetted the anticipated Remote Work Visitor Visa and also the new Points-Based System for Work Visas.
Home Affairs delivers on GNU mandate
In July 2024, President Cyril Ramaphosa outlined the Government of National Unity’s (GNU) collective mandate in this area. He called for the overhaul of the visa regime to attract skills and investment and also grow the tourism sector.
The new Remote Work Visitor Visa and Points-Based System for Work Visas are designed to simplify processes and attract foreign workers and investors. These major visa changes aim to remove bureaucratic obstacles that have made it hard to enter the country.
“The gazetting of all required elements for the Remote Work Visitor Visa and the new Points-Based System for Work Visas amounts to the single most progressive and pro-jobs regulatory reform South Africa has seen in decades.”
Home Affairs Minister Leon Schreiber
Schreiber added that he is confident that these changes will lead to establishing South Africa as a top choice for investment and tourism. This, in turn, could generate thousands of new jobs for South African citizens. Additionally, it should combat corruption.
How does the Remote Work Visa benefit people?
The Remote Work Visa allows well-paid individuals working for foreign companies to spend their money in South Africa. They then contribute to the economy by paying Value-Added Tax and purchasing goods and services from local businesses without competing with local job seekers.
What are the advantages of the Points-Based System?
The new Points-Based System for Work Visas aims to reduce corruption and streamline processes by eliminating unnecessary bureaucracy. It uses a clear points system to fairly assess who qualifies for Critical Skills or General Work Visas. Moreover, for General Work Visa applications made outside the Trusted Employer Scheme, a new income threshold of R650,796 – twice the median income in the formal sector – will help safeguard lower-end jobs while still allowing skilled workers to enter the market.
How does increased high-end skills boost the economy?
Increasing high-level skills can help the economy grow. A study done by the Reserve Bank and the International Food Policy Research Institute found that if South Africa increases the percentage of people with high-end skills by just 0.02%, it could lead to an annual economic growth of as much as 1.2%. Additionally, improving the Visa system could result in seven new jobs for every skilled worker brought into the country.
Cape Town mayor welcomes Home Affairs changes
Cape Town Mayor Geordin Hill-Lewis has welcomed these developments. He said, ‘We warmly welcome these major visa reforms and the exciting economic and job-creating potential to bring substantially more tourism to our shores’. The mayor congratulated Schreiber’s swift action in these reforms.
He added that ‘Cape Town is an ideal remote working destination’. Additionally, he pointed out that people will now be able to stay longer in Cape Town. This means that they will spend more money here to the benefit of local businesses.
Do you think these changes will have a significant impact on the economy?
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