South Africa is set to implement a points-based system for issuing work visas and permits to individuals wishing to live in the country while working remotely for foreign companies. Home Affairs Minister Leon Schreiber announced that the new regulations for both visa categories are now finalized, and the rollout is expected within the next 30 days.
The new system will allow individuals employed and paid in another country to reside in South Africa while spending their foreign earnings locally. Schreiber highlighted the benefits, stating, "A person who is employed and paid in another country will now be able to move to sunny South Africa to spend all of their dollars, yen, euros, pounds or renminbi right here." He clarified that these remote workers are only required to register with the tax agency if they reside in South Africa for more than six months in a year.
Schreiber, a member of the Democratic Alliance, emphasized the attractiveness of the remote-working visa, saying, "Our new remote-working visa must be one of the best deals I’ve ever come across. South Africa carries none of the cost of employing these nomads, yet we reap all of the benefits.”
Under his leadership, the Department of Home Affairs is streamlining the previously cumbersome visa application process. The backlog, which had accumulated due to lengthy processing times often extending beyond a year, has now been halved. The department has been facing lawsuits from individuals seeking rulings on their visa applications, indicating the urgency for reform. Both the presidency and major business organizations have identified the visa system as an impediment to economic growth, which has averaged less than 1% over the past decade, failing to significantly reduce the country's 33.5% unemployment rate.
Schreiber sees the new points-based work visa as a game-changer for the economy, noting, "The points-based work visa is going to revolutionize the South African economy. Gone will be the days when highly skilled workers had no pathway to help build this country if their skills happened to not be included in an arbitrary critical-skills list." He cited data from the Food Poverty Research Institute, suggesting that attracting an additional 11,000 tertiary-educated workers annually could boost South Africa's economic growth rate by 1.2% and increase tax revenue by 1.3% each year.
These changes come as part of the government's efforts to attract skilled workers and stimulate economic growth, leveraging the potential of a diverse international workforce.
Source: https://economictimes.indiatimes.com/nri/work/south-africa-to-introduce-points-based-system-for-work-permits-and-nomad-visas-in-30-days/articleshow/113475958.cms
