Immigration hurdles block Ramaphosa’s vision to lure capital

Source: Business Day, 09/02/2018

Cyril Ramaphosa’s first speech as the new president of the ANC left
many South Africans hopeful and enthusiastic about the country’s
future.
Virtually all interested parties in the immigration industry are
urging him to engage with our sector urgently to discover the hurdles
blocking his ambition to make SA attractive for foreign investment.
While existing legislation may provide a platform for reasonable
immigration laws, the law is not applied in practice. SA loses
substantial amounts of money annually due to lawsuits challenging
incorrect Department of Home Affairs visa application rejections.
Even worse, the country loses incalculable benefits due to the large
number of would-be investors who are turned away over visa hurdles.
Experienced businesspeople, attracted by the promise of operating in
SA, regularly lose heart and take their investments elsewhere due to
failed business visa applications; they take with them their foreign
investment, skills and job creation potential.
Applicants who could transfer scarce and valuable skills to SA’s
citizens routinely fail to secure the promised scarce-skills visas
due to wrongful refusals. Foreign-born business owners applying for
visa renewals are frequently turned down for no clear reason, placing
the future of their families, businesses and employees in jeopardy.
Appeals against these rulings can take years, at huge financial and
emotional cost to the applicants and their families, and at a
significant cost to the state.
Inconsistent interpretation of the Immigration Act implemented in May
2014, with home affairs directives imposed without due consideration
of their impact, are the biggest stumbling blocks in the way of the
foreign direct investment and global skills transfer the country so
desperately needs.
SA is no longer the only `gateway to Africa`, and foreign businesses
seeking to gain a foothold on the continent have multiple investment
options.
I have experienced many instances where would-be investors have opted
not to appeal and have simply taken their money elsewhere. In one
recent case a foreign businessman planning to invest R20m in a
guesthouse in Cape Town was denied because the Department of Trade
and Industry would not support his application, a prerequisite to a
business visa application, deeming the sector `overpopulated`.
Potential investors are turned away annually in their numbers, and
the true extent of this lost revenue will never be known because so
many more hear of the challenges of entering SA to do business and
move on to greener pastures without even applying.
For those who are truly determined to make SA their home the
immigration challenges may serve as an incentive to enter the country
illegally or to apply for the incorrect visas. And for those who are
already living and working in the country, these challenges and
wrongful rejections cause untold heartache and disruption.
VFS, the only office authorised to process applications, closed its
Cape Town office this week until further notice with no warning, with
devastating impact on those whose application deadlines loomed.
Services for South African citizens in the supply of identity and
passport documents have improved significantly over the past few
years, but the service from the Department of Home Affairs for
foreigners remains impaired. Litigation has consequently resulted in
judgments against the department, which must realise that the
Constitution has meaning and that the rule of law will prevail if the
ordinary administrative process fails.
Immigration processes and the inconsistent interpretation of the law
by home affairs officials are in effect slamming the door in the face
of would-be foreign investors.
The immigration industry has taken due notice of Ramaphosa’s
contributions to the country and his commitment to fighting
corruption and putting SA back on the market as one of the top
destinations for foreign investment, tertiary study and the entry of
skilled workers. Only through productive and dignified engagement
will litigation be avoided. Only through proper partnerships with all
interested parties and the upskilling of home affairs officials,
especially regarding the law, will foreigners and South Africans be
better served â€` without fear, favour or conflict.
We urge Ramaphosa, as the new president of the ANC, to engage with
interested parties to discover the real barriers in the way of much-
needed foreign investment and skills streaming into the country to
catalyse economic growth and job creation