DHA Extends ZEP Again… But Is It Enough?

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While this provides ZEP holders an additional six months to apply for a mainstream visa, as the Minister reemphasized in his announcement, many remain wary as they may still face several speedbumps on their journey to eventually obtaining South African residency.

Extension creates breathing room

The looming deadline of 30 June 2023 placed extensive pressure on both the Department of Home Affairs (DHA) and the limited VFS offices assisting ZEP holders. Both saw an uptick in mainstream visa and other special applications, with the latter now facing between 1,000 and 1,500 applications daily. This wave was felt across the board, with Xpatweb having also seen an increase in the number of families and businesses seeking to change ZEP statuses to mainstream visa categories.

While this shows that Zimbabwean nationals have heeded the call from the Minister to apply for alternative visas, such as General Work Visas and Critical Skills Visas, the slow processing times have left many concerned.

The six-month extension, along with the deployment of more officials to assist in processing applications, allows for the DHA and VFS to better work through these applications. Additionally, it offers a greater timeframe for Zimbabwean nationals to pursue a different visa option on their route to South African residency, should they be eligible to do so. However, this road may not be clear just yet.

Court Cases

The ongoing court cases by the Zimbabwean Immigration Federation and the Helen Suzman Foundation, together with the Consortium for Refugees and Migrants in South Africa, against the Minister continue to cause concern for many ZEP holders. The reality is, regardless of whether the court cases are won or lost, the losing party will most likely appeal the outcome.

While an appeal may leave some Zimbabwean nationals in limbo, those who are applying for mainstream visas may very well have created a long-term sense of certainty for themselves.

Backlog woes

Unfortunately, one hurdle that is not easily overcome is the backlog within the DHA. The department has faced a seemingly ever-worsening backlog since 2016, and by 2023, it reached nearly 63,000 pending applications, slowing down the processing times of applications for ZEP holders.

While the Minister announced that more resources have been deployed to assist in both the backlog and ZEP special applications, there seems to be no end in sight for these backlog woes.

VFS capacity and application costs

Solutions to a few hurdles have unfortunately not been considered in conjunction with the extension, such as capacity within VFS centres and the costs of the mainstream visa application process.

As it stands there are little to no VFS booking slots available and it appears that there are too many bookings for available slots which the VFS centres cannot accommodate. While this continues to show the eagerness of ZEP holders to apply for and obtain their special applications and visas, the extension may not be enough to curtail limited availability within VFS.

Further, there remain unplanned costs throughout the various stages of ZEP holders seeking to change their status. These unforeseen costs often place the process out of reach for many.

Are six months sufficient?

The six-month extension on the validity of ZEP permits remains a welcomed decision, as it allows ZEP holders more time to receive an outcome on any pending applications and it grants many the ability to begin the special application or mainstream visa process, despite the few roadblocks that remain.

Now is the opportune time for businesses with and families of ZEP holders to apply for a qualifying Mainstream visa or special application and to ensure they have a well-planned roadmap. A good roadmap ensures first-time accurate applications and avoids delays and/or rejections.

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Standard Bank and Xpatweb Event Provides an Update on South African Immigration Challenges

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The session covered the following topics:

  1. Available options if you are waiting for an outcome from the Department of Home Affairs;
  2. The implications of the extension issued by the Department of Home Affairs on pending applications; and
  3. An update on Zimbabwe Exemption Permits (ZEP).

Michelle acknowledged that immigration matters can be challenging and involved, and this is why Standard Bank has partnered with Xpatweb to assist its clients to deal with such matters.  The hot topic of discussion remained the ZEP system and the uncertainty on the way forward, alongside the visa concession and clarifying who indeed qualifies for it.

Visa backlog and dealing with overdue applications

In the first part of the webinar, Marisa articulated the Department of Home Affairs’ decision to withdraw the central adjudication system, leading to the current visa backlog. In his written statement announcing the new visa concession extension to 31 December 2023, the Minister of Home Affairs confirmed that this backlog was made up of 62,692 applications.

Marisa went on to discuss who qualified under the new visa concession extension, highlighting the following categories:

  • Applicants whose waiver application outcomes are still pending as of 31 March 2023 are granted a temporary extension until 31 December 2023.
  • Applicants whose visa applications (long-term visa holders) are still pending are granted a temporary extension until 31 December 2023.
  • Short-term visa holders whose visa validity was issued for less than 90 days, and who have not received an extension by 31 March 2023, must depart on or before 30 April 2023, to avoid being declared undesirable.

She also showed attendees which categories are not covered by the concession:

  • Any pending applications at Embassies.
  • Limited cover for short-term visa holders.
  • ZEP holders, even where there is a pending application.

It was acknowledged that the concession was ambiguous in some cases, and the importance of understanding whether one is covered by the concession or not was highlighted.

Marisa provided guidance on the documents which one should carry if they are covered by the concession and are travelling outside South Africa, to avoid challenges with being admitted back into the country. These documents include:

  • The original VFS Global receipt; and
  • The concession letter.

Following this Marisa noted that where one’s application is urgent or overdue, which was the case for 68% of webinar attendees, they may consider legal action to expedite their application. She mentioned that Xpatweb has been successful in the past when escalating clients’ urgent applications to the High Court, where the urgency of the application is supported by facts.

Impact on Zimbabwe Exemption Permit Holders

The second part of the session dealt with ZEP holders and the ongoing court case against the termination of the ZEP, where the judgement was reserved on 14 April 2023. Currently, ZEP holders have until 30 June 2023 to apply for a mainstream visa or a special application to the Minister for exemption. The ongoing court case has slowed down the approval of these applications.

On the positive side, it appears that the Department of Home Affairs has started processing special applications, with Xpatweb receiving its first approval on 3 May 2023.  Whilst this is positive, Marisa did note that the future of ZEP permits remains uncertain, as it is likely that irrespective of the outcome, there will be a process to appeal the outcome.

Marisa shared a few recommendations to employers of ZEP holders on how to best manage this situation, such as validating the authenticity of ZEP permits (same is applicable for refugee and asylum permits). She further noted that Department of Labour audits are continuing and that all businesses should be geared for this by performing an internal work visa audit.

Further, she, like the Minister of Home Affairs, encouraged ZEP holders to continue applying for alternative mainstream visa categories, such as temporary residence visa including, work, study and spousal visas. Both encouraged those who do not qualify for a mainstream visa to apply for a special application, which opens the door to applying for a General Work visa.

Closing

With the continued challenges for all new applications for all long-term mainstream visas, Marisa concluded by highlighting the need for individuals and businesses to develop a well-defined strategy and roadmap to deal with ongoing and upcoming applications. A well-defined roadmap and strategy will assist in guiding applicants and businesses through this tumultuous process, and it will prepare those already covered by the concession and new applications for any seemingly unexpected requests.

With the complexities of the changing South African immigration landscape, Standard Bank and Xpatweb will be holding another session on this topic on 13 June 2023.

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One Last Opportunity for the Portugal Golden Visa – The Time Is Now

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On 16 February 2023, this dream was shattered when the Portuguese government released a draft of a law proposal aiming to end its Golden Visa Program. While this is disheartening, those seeking a pathway to European residence and citizenship through Portugal have one last opportunity to do so.

The Portugal Golden visa

In 2012, the Portuguese government announced its own residency by investment program: the Portugal Golden Residence Permit Program, better known as Portugal Golden Visa Program. Like other golden visa offerings, this process aimed to boost the Portuguese economy through foreign investment.

The Portugal golden visa became one of the most popular Plan B options for South Africans and non-EU citizens. Henley & Partners explain that “Portugal boasts an excellent reputation and is considered one of the world’s most globalized and peaceful nations,” offering a high standard of living. And, with its rich history, lively culture, idyllic nature, and exceptional cuisine, it is no surprise South Africans are among the highest numbers of applicants for this golden visa.

Further, this permit offers many benefits, including the ability to live, work, and study in Portugal and travel to other Schengen states without an additional visa, as well as the possibility to acquire Portuguese citizenship after five years of legal residence. One more added allure, especially for South Africans, is the attractive Non-Habitual Resident (NHR) tax regime, which provided reduced tax rates and occasionally, full tax exemptions for the first ten years of residence.

Despite the many investment options HNWIs could have considered, most opted to invest in property worth at least €280 000 up to €500 000, and overall, the Portuguese golden visa succeeded in boosting the economy by bringing in €7 billion. Considering that about 90% of this large sum came from the sale of property to golden visa holders, one would think that the government would wish to continue the program.

However, this staggering statistic is behind the Portuguese government’s decision.

The problem with property and negative press

Whilst wealthy foreign investors have brought a large sum of money into the Portuguese economy by buying luxury real estate, it has resulted in a housing crisis. In recent years, the cost of real estate has increased substantially, particularly in Lisbon and Proto, mostly due to non-EU citizens buying homes at prices that members of the Portuguese public cannot afford.

However, while a major spotlight has been shone on the housing crisis, it is not the only reason why the Portuguese government has decided to end the popular golden visa program.

The European Commission, a subsidiary of the European Union, has been increasingly negative towards golden visas, stating that it undermines the values of the EU project and is a major security risk – supposedly opening the door to illicit affairs. For several years, the European Commission has urged countries within the union to reconsider their golden visa programs, or at least modify them to comply better with the EU’s transparency and security standards.

While the Portuguese government has maintained its stance on the housing crisis being the cause for its decision, one cannot ignore the mounting pressure from the EU. Portugal is not the only country to consider ending their golden visa program, as Ireland announced the end of theirs just days before Portugal’s announcement, and there are growing concerns that Spain will follow suit.

The threat of the end of a golden ticket into the EU is worrying for many South Africans wanting to incorporate residence and citizenship planning into their life roadmap, however, it is not over yet.

The door is not closed – yet

The announcement on the 16th of February 2023 was a mere proposal to end the Portuguese Golden Visa Program. Since then, the draft proposal has changed several times, but as it stands, existing and new applications will still be considered, if they are submitted before the law comes into force, which, at this point, is unclear.

The lack of clarity may be concerning; however, it does offer one last opportunity for South Africans to apply for a golden visa.

As mentioned, there are several economic contributions to consider when applying for the Portuguese golden visa, including:

  • A capital transfer of at least €1 million into the country;
  • The creation of at least eight job positions in Portugal;
  • The purchase of a property in Portugal worth at least €280 000;
  • Investing at least €400 000 in scientific research in Portugal; and
  • Invest €200 000 or more in Portuguese arts, culture, and heritage.

With so many options to choose from, and the scrutiny of the property investment route, it might be best to consult with emigration experts who can help you plan an effective financial emigration roadmap. A good roadmap takes into consideration all your plans for your and your family’s future and Portugal’s current standing on golden visa applications.

Thomas Lobban, Head of Cross-Border Individual Tax at Tax Consulting SA, agrees that Portugal remains a destination of choice for South African HNWIs, especially from a tax perspective, due to the “robust double taxation agreement” between the two countries. He also goes on to say that “We have seen South Africans make this transition with relative ease, where it is well planned, and we do not typically see these individuals permanently returning to South Africa thereafter.”

The time is now

While the ending of the Portuguese Golden Visa Program might be disappointing, the opportunity to invest and live in Portugal is still there, until the Portuguese parliament votes the proposal into law.

Ultimately, the time to invest in and move to Portugal is now.

For greater success in securing your spot, it is best to consult with emigration experts who can assist you in planning an effective roadmap.

Henley & Partners, in collaboration with Tax Consulting SA, will discuss the Portugal Golden Residence Permit Program, other European Residence Programs, tax planning, and more, at this year’s South African Roadshow, Investment Migration Is More Than Just a Plan B — Secure Financial Freedom and Global Education for Your Children. Visit henleyglobal.com to register for this free event.

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A New Critical Skills List, But Does It Do Enough For South African Employers?

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In response to the need for relevant data on critical skills, Xpatweb launched its annual Critical Skills Survey in 2017. This service gives employers the opportunity to identify the critical skills they need currently for their company and, through Xpatweb, share their requirements with policymakers.

Does The Current Critical Skills List Solve Employers’ Problems?

South Africa continues to struggle with critical skills shortages, thus employers are directing a new recourse to source these talents from abroad.

The value of foreign talent includes:

  • Reducing the current shortage of skilled workers that can keep companies in business and help them remain profitable.
  • Improving the operational integrity and service delivery of businesses so all South Africans have access to products and services that better the quality of their lives.
  • Helping South Africa to become competitive and remain significant in today’s global markets.
  • Developing local entrepreneurship and innovation by bringing in talent from technologically and economically advanced regions.
  • Driving economic growth through the very skills the government has identified as essential to that outcome.
  • Providing interim replenishment of talent lost to the ‘brain drain’ to allow the country time to develop comparable skills locally.

Unfortunately, if the required occupations do not appear on the national Critical Skills List, then employers will be unable to bring them into the country on a Critical Skills Visa.

Yet, even after the most recent update to the list in August last year, the latest Critical Skills List may still not solve employers’ problems when trying to recruit foreign talent.

But how can employers provide their input if they feel the Critical Skills List needs to be improved?

Xpatweb Critical Skills Survey Carries Employers’ Voice to Government

Since Xpatweb’s Critical Skills Survey was first launched in 2017, its results have evolved into a respected authoritative reference among policymakers.

It has been hosted annually over the past 7 years, with the 2020 and 2021 data being combined due to lockdown restrictions.

Each year, the firm submits its findings for consideration by policymakers. However, in 2020, it was invited to present its data to several government departments, including the Department of Home Affairs (DHA), involved in compiling the latest Occupations in High Demand (OIHD) list.

The output of that exercise carried through to the development of a new national Critical Skills List in 2021. During the period of public commentary, employers raised concerns that several occupations had controversially been omitted from the List.

After the List was finally gazetted in February 2022, Xpatweb’s research and input again contributed to its amendment in August 2022. This update saw the return of some previously abandoned occupations, including Corporate General Manager, certain Engineering roles, and several Health Sector professions.

Such wins were only possible because private groups lobbied for these occupations to be reviewed and because sufficient data was collected to justify their demands. Xpatweb’s Critical Skills Survey results were an important dataset in this process.

Pushing For a Regularly Updated Critical Skills List

Xpatweb continues to actively participate in government programs as an ambassador of the critical skills community.

Jacobs says the firm plans on submitting this year’s Critical Skills Survey results to the government as it has faithfully done in the past.

“It is our belief that the Critical Skills List must be updated at least every two years to remain aligned with employers’ needs, not every 10 years”, says Jacobs.

Jacobs urges critical skills employers to take part in Xpatweb’s Critical Skills Survey, a long-running service that has helped shape the latest Critical Skills List.

“This is your chance to create the Critical Skills List you need,” she says.

Last year’s results and the current survey can be accessed via Xpatweb’s website here: https://site2.xpatweb.com/annual-critical-skills-survey-portal/

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Latest Immigration Directive Update – Key Requirements Waived For Temporary Residence Visa And Permanent Residency Applications

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This new directive will be welcomed by all the applicants who were previously burdened by the bureaucratic requirements that come with applying for visas or permanent residency permits. The radiological report requirement has been a long-standing issue for many visa applicants. This test can be both costly and time-consuming, and many applicants have found it to be a significant barrier to entry. A radiological report was required for every visa application that exceeds a 90-day period in South Africa, while only being valid for six-months.

The burden of obtaining this report was further compounded by the fact that it needed to be originally issued and issued in the country where the applicant will submit the visa application.

With the new directive, these requirements have been waived, making it easier for applicants to apply for visas and permanent residency permits.

Similarly, the police clearance certificate requirement has been another stumbling block for many applicants. This certificate attests to the applicant’s criminal history in every country it has been obtained from.

Prior to the new directive, an applicant was required to obtain a police clearance certificate from their home country and every other country they have been resident in for a period of 12 months after attaining the age of 18 years. Obtaining this document can be a costly, complex and time-consuming process, particularly for applicants who have lived in multiple countries or who have a complicated legal history. With the new directive, this requirement has also been waived, making it easier for applicants to apply for visas and permanent residency permits.

The new directive reduces the burden of the police clearance certificate as an applicant that will only need Police Clearance Certificates from countries they have lived for the past 5 years, preceding the date of their visa or permanent residency application.

The new directive is a step in the right direction towards a more streamlined and efficient visa application process. However, there are some concerns about the potential impact of this new directive. Without a medical and radiological report or a criminal history, there is a risk that some individuals with criminal histories or contagious diseases could slip through the cracks and gain entry to the country.

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