Entries by xp-admin

Transforming Home Affairs: A Digital-First Approach to Unlock South Africa’s Economic Potential

18/09/2024 in , , /by

Dr Schreiber shared, that according to research by National Treasury, attracting more skilled workers is the second-most powerful intervention that can stimulate economic growth in South Africa. Highlighted that where we are able to attract 11,000 more skills per annum, currently we attract between 4,500 and 5,000 skills, we can triple GDP growth from current level of 0.6% to 1,8%.

With partnerships from major global players like China and India, boosting tourism by 10% over the next year will add a further 0.6% to GDP growth.

For South Africa to achieve its economic ambitions, the Department of Home Affairs must play an enabling role, especially in areas that intersect with immigration and civil services. Unfortunately, the Department’s administration has long been marred by inefficiency and corruption, largely due to outdated manual processes.

These inefficiencies not only stifle economic growth but also delay services that are critical to national security and civic dignity.

In a press release issued on 17 September 2024, the Minister outlined his bold vision for transforming the Department of Home Affairs. The Minister emphasized the critical role the department will play in driving South Africa’s economic growth through modernisation, digital transformation, and improved efficiency. He presented a forward-thinking plan to digitize services, streamline processes, and reduce inefficiencies.

Key takeaways from the Minister’s address include:

1. The Problem of Administration

Currently, the Department of Home Affairs is a decade behind in terms of administrative modernization. Its reliance on paper-based systems has not only hindered service delivery but also created opportunities for fraud and mismanagement. This outdated approach must be brought in line with global trends, where automation and digital transformation have revolutionized service delivery and enhanced transparency.

The department’s inefficiency has serious economic implications. Whether it’s visa applications for skilled workers, business investors, or tourists, long delays and self-created bottlenecks, it has severely hampered economic activity. As a result, South Africa risks losing out on significant investment and talent, which are crucial for economic growth.

2. A Vision for a Digital-First Department

A bold vision outlined by the Minister, is one where the Department of Home Affairs is no longer seen as a bureaucratic burden, but as a catalyst for economic growth. Central to this transformation is the concept of a “digital-first” Home Affairs. The department aims to automate and digitalise every process, from civic services to visa adjudication, eliminating inefficiencies and a platform for corruption.

One of the cornerstones of this transformation is the introduction of “Home Affairs from home.” This initiative aims to allow South Africans to apply for ID’s, passports, and other essential documents online, using secure biometric technology. The entire process, from application to delivery, will be digitalised, reducing the need for individuals to physically visit Home Affairs offices. This will not only save time but will also free up resources to better serve those without access to digital tools, such as rural and impoverished communities.

3. Visa Processing: A Key to Economic Growth

In the area of immigration, the digitalisation of the visa adjudication process is critical. With South Africa aiming to attract more skilled workers, tourists, and investors, a streamlined visa process is essential. The goal is to create a system where visa applications are processed by an automated risk engine, using the latest in machine learning technology. This will allow legitimate applications to be approved almost instantly, with visas being issued digitally and stored directly in applicants’ digital wallets.

Such a system would eliminate bias and human error in the process, reducing the opportunities for fraud and baseless rejections. It would also allow for more robust cross-referencing of information, further enhancing national security. By embracing this approach, the Department of Home Affairs could not only speed up visa processing but also play a vital role in South Africa’s broader economic strategy.

4. Charting the path forward

The transformation of the Department of Home Affairs is ambitious, but it is entirely achievable. The newly appointed Minister has already made significant strides in clearing the visa backlog that once stood at over 306,000. In just a few short months, more than 56% of this backlog has been cleared, showing the department’s capacity for change.

New regulations on Remote Work Visas and the implementation of a Points-based immigration system are also on the horizon, promising to make South Africa an attractive destination for global talent. Additionally, the Trusted Tour Operator Scheme, set to launch in January next year, will further open the door to the lucrative Chinese and Indian tourism markets.

The modernisation of the Department of Home Affairs is not just about making the department more efficient, it’s about turning it into a powerful enabler of economic growth. By embracing automation and digitization, the Department of Home Affairs can unlock opportunities for South Africa, from attracting skilled workers to increasing tourism.

With continued commitment, this vision of a world-class Department of Home Affairs is within reach, setting the stage for South Africa’s best economic days to come.



CONTACT US FOR ASSISTANCE

Essential Insights into South Africa’s Section 11(2) Visa for Foreign Nationals’ Short-Term Assignments

04/09/2024 in , , , /by

Purpose and Eligibility

The Visitor’s Visa in terms of section 11(2) is specifically designed for short-term work assignments. It permits foreign nationals to enter South Africa for a limited period to carry out particular work duties. This visa is ideal for individuals who need to fulfill specific responsibilities on behalf of a foreign employer at a South African host company. To qualify for this visa, applicants must provide documentation that clearly outlines:

  • The Nature of the Assignment: The foreign employer must detail the project or work to be undertaken and the reasons why the applicant’s presence is necessary.
  • The Role of the Host Company: The South African host company must justify the need for the applicant’s specialised skills and confirm the nature of the work to be performed as well as act as the host, taking responsibility for the applicant while on assignment.

Application Requirements

To obtain a Visitor’s Visa in terms of section 11(2), the applicant must submit the following documents, inter alia, with their visa application:

  • Letter from the foreign employer detailing the purpose of the visit and project specifics.
  • Letter from the South African host company confirming the need for the applicant’s specialised skills and describing the work to be carried out.
  • Proof of the applicant’s relevant qualifications and experience in line with the proposed assignment.

Visa Duration and Renewal

The Visitor’s Visa in terms of section 11(2) is issued for a maximum period of 90 days. However, if necessary, the visa can be renewed for an additional 90 days while in South Africa. It is essential to note that a foreign national who has already renewed their visa for 90 days within the same calendar year is ineligible to apply for this visa category again within that calendar year.

Conclusion

The Visitor’s Visa in terms of section 11(2) is an essential pathway for foreign nationals engaged in short-term work assignments in South Africa. By providing thorough and accurate documentation from both the foreign employer and the South African host company, applicants can facilitate a smooth visa application process and ensure that vital short-term projects receive the appropriate input from highly skilled individuals.



CONTACT US FOR ASSISTANCE

South Africa Study Visa Application Guide: Must-Know Details for International Students

04/09/2024 in , , , /by

Key Prerequisite Documents

One of the critical documents required for a Study Visa application is an undertaking letter from your accepted learning institution. This letter must be issued by the Registrar or Principal and include the following undertakings:

  1. Proof of Registration: The institution must provide proof of registration as required by relevant legislation within 60 days of registration.
  2. Notification of Failure to Register: If the student fails to register by the specified date, the institution must inform the Director-General within 7 days of the registration deadline.
  3. Notification of Discontinuation: Should the student cease to be registered with the institution, the Director-General must be notified within 30 days.
  4. Completion or Extension Notification: The institution is required to notify the Director-General within 30 days upon the completion of studies or if an extension of the study period is necessary.

Additional Requirements

In addition to the undertaking letter, some South African foreign missions mandate that the letter be accompanied by the institution’s registration certification from the relevant government body. This requirement underscores the importance of thorough research and the benefits of working with a trusted immigration advisor to navigate the application process and avoid potential bureaucratic hurdles otherwise easily avoided.

Medical Aid Cover

A requirement that is often overlooked by applicants is that they must ensure that they have valid medical aid cover for the entire duration of their studies. Following this, in order to adhere to the aforementioned requirement, study visa applicants must include proof of membership to a recognized medical scheme which is recognized by South Africa’s Medical Schemes Act.

Further to the above, a supplementary letter must be included in the application pack that undertakes to ensure the Medical Aid will remain active for the entire duration of the applicant’s sojourn in South Africa. This letter can be signed by either the applicant themselves if they are over the age of 18, or the person/entity whose responsibility it is to cover any costs incurred during the applicant’s studies in South Africa.

Validity Periods of Study Visas

The validity of a Study Visa will depend on several factors:

  • Dependent Status: If the student is a dependent of a foreign national on a work permit.
  • Course Duration: The length of the study program at the learning institution.
  • Passport Expiry: The expiry date of the applicant’s passport.

Visa adjudicating officials typically issue visas with an expiry date that aligns with the earliest of these considerations. It is therefore, of vital importance that applicants ensure that their passports are renewed to ensure that the maximum duration is received to avoid having to apply for renewal of your study visa in quick succession of the original issuance.

Conclusion

Securing a Study Visa for South Africa involves careful planning and adherence to specific requirements. By understanding the documentation needed and the factors influencing visa validity, prospective students can better prepare for their academic adventure.



CONTACT US FOR ASSISTANCE

Mauritius is Very Attractive for South African and French Nationals

21/08/2024 in , , /by

The success of this recipe is evident from similar initiatives by the United States, Canada, France, Portugal, Spain, Netherland, the UAE, New Zealand and Australia, to name a few. Where you “tick the right boxes”, the red carpet is rolled out. The benefits of Mauritius are easy to understand, even more so with its proximity to South Africa and for those with continued African continent interests. The very low tax makes it a computational no-brainer. However, this does not come at the expense of service delivery. The environment is personally safe, there is no load shedding, no National Health Insurance, but excellent medical care.

The Mauritius Minister of Finance, Dr. The Honourable Renganaden Padayachy;
with Ms Aditi Boolell of Boolell Advisory Mauritius and Mr Jerry Botha,
Managing Partner of Tax Consulting South Africa; 19 August 2024

There are about 10,000 South Africans in Mauritius, according to the South African High Commissioner to Mauritius, Her Excellency Dr. Manzini. This makes South Africans the second largest foreign expat population, after French Nationals which are the largest. The benefits for both South African and French nationals are typically the quality of life and a very favourable tax regime.

The Mauritius taxes allow you to not only create real wealth, but also grow your wealth and even pass it on without government taxing most of it. The top individual tax rate is 20% (South Africa is 45%), there are no capital gains tax (South Africa to 18%), no estate duty (South Africa to 25%), corporate tax is up to 15% (South Africa 27%) and no Mauritius tax on dividends (South Africa is 20%). This is a simple mathematical exercise why in South Africa it is tough to get ahead, even before the South African promotors of National Health Insurance reveal how their plans will be funded.

In South African news we hear about critically skilled foreigners and investors being kept out or uncertain with a current 150,000 visa backlog. The new Minister of Home Affairs, Dr Leon Schreiber, is someone who speaks a language which business understands and appears fully committed to Home Affairs despite its funding, corruption and porous border challenges. But will he be supported by the rest of the South African Government? In Mauritius, a long-term visa application takes only a month where you make use of a competent advisor. You do not need to buy a property to acquire a right to stay long-term in Mauritius and the system is holistically welcoming, as it is supposed to be.

An interesting fact about Mauritius is that unemployment is less than 6% and that excludes the informal sector which makes the effective unemployment rate even lower. Even in low unemployment, Dr. The Hon Padayachy sees not only a risk to economic growth, but also opportunity. Mauritius must attract more skilled foreigners, entrepreneurs and foreign capital – people and industry make the whole economy grow.

Interestingly, this is also identified by the South African Home Affairs Minister Dr. Schreiber, who says that increasing South African critical skill immigrants from the current 4,000 visas approved per year to 11,000 per year; will nearly quadruple the South African economic growth rate.

In an increased global troubled world, which is simply unaffordable for most South Africans, the Mauritius option is increasingly making sense.



CONTACT US FOR ASSISTANCE

Wanted: Experienced C-suite Executives

20/08/2024 in , , /by

Almost 24% and 17% of respondents, respectively indicated they have to look far and wide for suitable Chief Financial Officers, and Chief Technology Officers.

This is the largest survey among verified employers about the critical skills that are most in demand in South Africa.

Marisa Jacobs, Managing Director of Xpatweb, said as corporates expand globally, they look for executives with international experience so they can take their businesses into Africa and beyond. This means they must often expand their recruitment efforts internationally; she told Jeremy Maggs in an interview on Moneyweb.

Recruiting the right C-suite executive for the job, is sometimes easier said than done.

According to Tanya Tosen, a Master Mobility Specialist at Tax Consulting South Africa, this also comes at a huge cost as the average assignment to recruit and relocate an employee with the necessary critical skills, is approximately 3 to 5 times more expensive than obtaining a local resource in a respective country.

Therefore, companies must plan for the cost of the total package, typically covering salary, annual benefits, once-off relocation costs, and tax and social security liabilities.

Tosen told delegates at Xpatweb’s recent Mobility Conference that due to the global economies and constant pressure the need for cost control has reached new heights, thus making a sound mobility strategy for companies more important than ever.

In addition, it should be noted that cost containment is not about arbitrarily cutting costs, but about spending more strategically to develop a clearly defined mobility plan that allows for the right people for the right reasons to be appointed, and so ensuring a return on investment in mobility.

She demonstrated the rising cost of housing and motoring worldwide which can have a huge impact on international assignments specifically with housing rent which has increased in many countries, including South Africa.

Rent in sought-after areas in Cape Town increased by about 9% year-on-year, but the low value of the rand has made the Mother City increasingly popular among digital nomads also adding to pushing these rental prices higher, Tosen said.

How does South Africa fare

Despite certain challenges, expats’ happiness in South Africa has improved significantly over the last year. She referred to the Expat Insider Survey by InterNations, ranking South Africa 29th out of 53 countries on the overall rankings of Best Destinations for Expats in 2024. This is an improvement of 19 spots compared to 2023.

Expats in South Africa indicated they are excited about the leisure opportunities, general cost of living, good housing, healthcare and pleasant environment and climate. Weather conditions also count in our favour and respondents said they make friends easily in South Africa.

Almost 33% may stay forever, the Expat Insider Survey showed.

Issues hindering expats from coming to our sunny shores

Safety is the main issue for expats in South Africa. We rank the lowest on personal safety and political stability, dragging down our overall rating. A less than desirable ranking in the subcategory Travel and Transit due to poor affordability and availability of public transport, also weighs on South Africa.

Tax Regulations

Companies must keep in mind when individuals cross borders, the complexities of tax regulations and immigration requirements can pose various challenges. Businesses must keep up with Government regulations related to ways of work in the country they find themselves in. It is advisable to get help from Mobility and Tax professionals who can assist businesses to stay compliant, deploy global talent strategically, and track and align related expenses and outcomes, Tosen said.

Mobility experts can help corporates in recruiting the necessary skilled employees, plan for this cost to ensure it delivers a return and stay on top of tax and immigration regulations.



CONTACT US FOR ASSISTANCE