The news:
- On October 9, 2024, South Africa’s Department of Home Affairs unveiled significant visa reforms to boost its economy by attracting skilled workers and foreign investment.
- The key change is the introduction of a Remote Work Visitor Visa, which allows high-earning foreign workers to live in the country while working for overseas employers.
- This initiative is expected to stimulate local businesses, as these remote workers will spend their income on goods and services within South Africa.
In addition, the government introduced a Points-Based System for Work Visas aimed at simplifying the visa application process.
According to Minister of Home Affairs Leon Schreiber, these reforms are part of broader efforts to remove bureaucratic hurdles, encourage investment, and create jobs.
Schreiber described the new policies as "the most progressive and pro-jobs regulatory reform" the country has seen in decades.
The Remote Work Visitor Visa allows international remote workers to contribute to the South African economy by paying Value-Added Tax (VAT) on local purchases. By inviting foreign income into the country, this reform is expected to support local businesses and create employment opportunities.
Furthermore, the new Points-Based System for Work Visas will streamline visa processing and reduce corruption. Applicants for a Critical Skills or General Work Visa must now reach a 100-point threshold, which helps ensure that only high-skilled professionals enter the workforce.
This system also protects lower-wage jobs, as it requires applicants to earn a gross annual income of at least R650,796 ($36856) — double the median income in South Africa's formal sector.
These reforms are part of President Cyril Ramaphosa's broader goal of overhauling South Africa’s visa regime.
Independent research by the Reserve Bank and the International Food Policy Research Institute has shown that even a 0.02% increase in high-end skills could boost annual economic growth by 1.2%. Moreover, seven new jobs could be created for every skilled worker added to the economy.
Schreiber emphasised that the visa changes, including the Points-Based System, aim to reduce red tape, increase transparency, and fight corruption within the immigration system.
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Overall, these reforms are set to position South Africa as an attractive destination for international talent, boosting investment and economic development.
The government is optimistic that these changes will make South Africa a leading hub for skilled workers and remote professionals.In April 2024, the South African government signed its digital nomad visa regulations into law, allowing skilled remote workers to obtain a digital nomad visa to live in the country for a set time.
