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Bloomberg News reports that SA has begun taking steps to resolve what the Presidency believes is the biggest impediment to growth after persistent blackouts, namely an acute shortage of skills.
A raft of changes to simplify the rules governing the work permit regime were submitted to the state legal adviser last week and are expected to be passed into law in coming months. Saul Musker, director of strategy and delivery support in the Presidency, indicated that the adviser would consider them for a few weeks and they would then be put out for public comment for 30 days before being taken to parliament. Companies operating in SA struggle to find skilled workers, a result of a dysfunctional education system exacerbated by emigration. Between 2014 and 2021 only 25,298 skilled work permit visas were approved. More than half of applications were rejected on grounds including errors in the complex application process. Musker commented: “It’s harder to come to SA than almost any other country in the world despite the acute shortage of skills we have. Investors are not able to grow their businesses in SA, or have their regional head offices here. It’s a huge and very real constraint to growth.” It is projected that a moderate increase in skilled migration could lift GDP by 1.2%. Eight recommendations in a study released by the Presidency in April include a points-based system, where applicants who met a minimum education and salary level would be granted work permits. Larger employers could be granted trusted employer status. New permit categories to ease the entry of remote workers and those working for start-ups should also be created. Ultimately, work permit applications may be able to be made and tracked online instead of through the submission of documents to embassies in what then becomes largely a manual process.
- Read the full original of the report in the above regard by Antony Sguazzin at BizNews
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