On October 9, the South African government unveiled a new work visa policy designed to attract highly skilled talent with critical or scarce skills, while ensuring that it does not infringe on job opportunities for low and middle-income earners.
In an official statement, South Africa’s Minister of Home Affairs, Leon Schreiber, introduced the remote work visa alongside a points-based work visa system, as well as amendments to existing immigration regulations.
The remote work visa will allow high-income individuals working abroad to spend foreign currency within South Africa. This is facilitated by the payment of Value Added Tax (VAT), which supports local consumption and the acquisition of South African goods and services.
As for the work visa system, the new framework features a points-based assessment for applications related to general work and critical skills. This evaluation method allocates points based on various criteria such as the applicant’s profession, educational qualifications, work experience, and mandatory salary requirements. Notably, candidates must have an annual income of 650,796 Rand (around 26,100 USD), which is double the median income in South Africa’s formal sector. This requirement aims to protect low-income earners from direct competition.
Schreiber referenced independent research from the South African Reserve Bank and the International Food Policy Research Institute, which found that a mere 0.02% increase in the number of high-skilled workers relative to South Africa’s total population could enhance the country’s annual economic growth by as much as 1.2%. He emphasized that for every skilled professional who joins the South African economy through this new visa system, seven new job opportunities could arise.
With optimism, Schreiber noted that this reform could help reposition South Africa as a premier destination for investment and tourism, ultimately generating new job opportunities for its citizens.
A report from Bloomberg suggests that these reforms will also address the challenges faced by foreign companies operating in South Africa, particularly related to the mobility of technical staff and executives.
Chinese business representatives in South Africa have expressed that the new work visa reforms have made the application process clearer and more efficient.
