DEMOCRATIC  ALLIANCE    Submission    

Prepared  for…..  

  The  Minister  of  Home  Affairs   Hon  Malusi  Gigaba   _____________________________________________________________________   IMMIGRATION  REGULATIONS   In  terms  of  section  12  of  the  Immigration  Amendment  Act  2007  

 

    Signed   into   law   on   the   22   May   2014,   the   new   Immigration   Regulations   introduce,   (inter  alia)  a  new  visa  regime  for  local  and  foreign  travellers.  Although  many  of  the   provisions   of   the   new   regulations   have   good   intentions,   there   remains   many   unintended   consequences,   which   would   have   a   long-­‐term   effect   on   job   creation,   tourism  &  economic  development.       This   submission   is   compiled   with   a   view   to   highlighting   those   unintended   consequences  for  the  consideration  of  the  Minister.     The  Impact  on  Jobs     Immigration  Practitioners     The  introduction  of  Visa  facilitation  Centres,  although  aimed  at  streamlining  the  Visa   Facilitation   Process,   will   have   a   negative   effect   on   the   hundreds   of   private   immigration   practitioners   and   law   firms   in   the   country.   Each   of   these   practitioners   employ   on   average   between   4-­‐10   staff.   There   are   approximately   450   private   immigration   practitioners   in   the   country   and   hundreds   of   additional   law   practitioners  who  provide  a  similar  service.  The  Director  General  announced    (on  the   14   July   2014)   that   ”the   launch   of   the   new   visa   facilitation   centres   will   contribute   towards  job  creation  and  that  already  92  jobs  have  been  created”.  1                                                                                                                     1  sanews.gov.za  

He  obviously  did  not  take  into  account,  the  number  of  staff  that  stands  to  lose  their   jobs   as   hundreds   of   private   immigration   practitioners   become   redundant.   The   Department,   through   the   registration   of   immigration   practitioners,   acknowledged   the  role  that  they  play  in  the  visa/immigration  industry.       Registration  numbers  were  issued  to  scores  of  Immigration  Practitioners,  indicating   an  acceptance  of  the  role  that  they  play  in  the  Visa  Processing  regime,  however  the   new  regulations  make  no  provision  for  their  continued  survival.       Immigration  Practitioners  contribute  significantly  to  the  economy  of  the  country  as   they   market   their   services   abroad   and   thereby   increase   the   number   of   foreign   visitors   to   our   country.   Many   private   immigration   practitioners   offer   a   one-­‐stop   advice  centre  for  foreign  investors  looking  to  do  business  in  South  Africa.     Proposed  Solution:       v The   Department   can   find   a   continued   role   for   the   hundreds   of   Private   Immigration  Practitioners.  One  possible  approach  is  to  allow  for  a  partnership   to   be   created   between   VFS   Global   and   Private   Immigration   Practitioners   or   expand   the   visa   facilitation   industry   to   allow   for   more   than   one   service   provider.   A   similar   model   has   been   explored   and   implemented   in   Australia   with  some  success.  Monopolising  the  industry  in  South  Africa,  will  have  the   opposite  effect.       v Allow   private   immigration   practitioners   to   continue   assisting   applicants   for   corporate/business   visas   and   other   visas   that   do   not   require   biometrics   validation   in   the   application   process.   In   pursuit   of   remaining   profitable,   private   practitioners   will   source   potential   investors   in   many   countries   abroad   and  will  facilitate  the  growth  in  foreign  direct  investment  and  job  creation.     v Conduct   a   regulatory   assessment   on   the   impact   of   the   new   regulations   on   jobs  and  the  economy  in  SA.  

  Student  Visas     Foreign   students   studying   in   South   Africa   are   now   obligated   (in   terms   of   the   new   regulations)  to  return  to  their  country  once  they  have  completed  their  studies.     In  a  country  where  the  list  of  critical  skills  is  growing,  the  department  should  make  it   more  attractive  to  retain  these  qualified  students  instead  of  banishing  them  back  to   their   country,   especially   in   instances   where   students   are   studying   in   a   field   that   is   considered  as  a  critical  skill.(as  gazetted  recently)     In   addition,   South   African   students   who   study   in   the   medical   field   in   SA   are   required   to  conduct  a  compulsory  period  of  community  service.  In  contrast,  foreign  students   are   allowed   to   immediately   return   to   their   home   country   without   making   any   contribution  to  the  country’s  development.     Proposed  Solution     v Amend   the   regulations   to   allow   foreign   students   (scarce   skills   study)   to   remain  in  the  country  after  completion  of  their  studies.   v Explore  the  possibility  of  community  service  for  foreign  students  studying  in   the  medical  field.                      

The  Impact  on  Tourism     Visitors  Visa     In   a   world   where   tourism   competition   is   growing   stronger,   the   more   accessible   a   country  is,  the  greater  the  success  in  achieving  international  market  share.  Over  the   last  ten  years,  South  Africa’s  tourism  industry  has  grown  significantly.  The  potential   to  grow  this  industry  in  future  years  is  even  greater.       The   tourism   sector   currently   employs   about   600   000   people.   The   National   Development  Plan  suggests  that  the  sector  has  the  potential  to  add  a  further     225   000   jobs   by   2020   and   that   this   sector   can   contribute   about   R500bn   to   the   economy.     All   over  the   world,   countries   are   finding   ways   of   making   it   easier,   simpler,   faster   and   cheaper   to   become   more   attractive   to   tourists   and   to   claim   a   higher   share   in   the   multi-­‐billion  dollar  international  tourism  market.     Whilst  countries  elsewhere  are  introducing  more  streamlined  application  processes,   it   appears   that   the   new   regulations   in   South   Africa   are   advocating   quite   the   opposite.   There   are   now   more   requirements   for   permits   than   there   has   ever   been   before.   Making   it   obligatory   for   travellers   to   apply   in   person,   (for   fingerprint   capturing)  is  also  extremely  inconvenient  especially  in  countries  where  only  one  or   two  VFS  offices  are  available  and  “would-­‐be”  travellers  have  to  take  internal  flights   over   hundreds   of   kilometers   (at   further   cost)   to   appear   in   person   at   a   VFS   Global   office.       The   CEO   of   Cullinan   Holdings   for   eg   has   confirmed   in   an   interview   that   he  has   received  feedback  from  Chinese  travel  agents  that  a  70%  drop  in  travel  from  China  

to   South   Africa   is   forecast   due   to   the   new   immigration   regulation’s   hasty   implementation.2         In  addition,  travel  agents  in  India  are  already  advising  their  clients  to  look  at  other   African  destinations  because  of  the  new  immigration  regulations.     Proposed  Solutions     v Allow  for  the  capturing  of  fingerprints  on  arrival  at  ports  of  entry  instead  of   during  the  visa  application  process.   v Engage   the   travel   agent   industry   in   order   to   find   ways   to   reduce   the   regulatory  burden  and  make  SA  more  attractive.   v Introduce   an   e-­‐visa   system   where   foreigners   can   apply   and   make   payment   online.     Unabridged  Birth  Certificate     Current  regulations  require  that  all  travellers  departing  and  arriving  in  South  Africa   with   children,   must   produce   an   unabridged   birth   certificate.(implementation   date   extended)   The   lengthy   and   time-­‐consuming   manual   verification   process   that   is   conducted   by   the   department   to   process   applications   is   a   source   of   huge   frustration   to   South   African   citizens   travelling   abroad.   Although   the   department   promises   delivery   in   weeks,   in   many   instances   it   takes   several   months   to   for   a   successful   application.     The   International   Air   Transport   Association   (IATA)   estimated   that   in   and   outbound   travel  in  South  Africa  was  worth  R24  billion  last  year.3  A  quarter  of  this  came  from  

                                                                                                                2 3

 http://www.bdlive.co.za/    http://www.iol.co.za/business/news/new-­‐visa-­‐laws-­‐upset-­‐tourism  

people   travelling   with   children.   This   means   that   we   place   at   risk,   a   potential   R5bn   in   revenue  because  of  the  introduction  of  just  this  one  new  requirement.       Proposed  Solution     v Extend  the  implementation  date  of  this  requirement  (even  further)  until  the   Department  can  tidy  up  its  verification  process  and  complete  the  digitization   of  citizen  records.  This  will  result  in  quicker  turn-­‐around  times  for  unabridged   birth  certificate  applications.       The  Impact  on  the  Economy       Business  Visas     Unemployment   in   SA   is   high,   growth   rates   are   down,   economic   development   is   slower  than  predicted  and  labour  protests  are  on  the  rise.  All  of  these  factors  make   South   Africa   an   unattractive   business   destination.   To   turn   this   around   South   Africa   needs  to  become  the  most  attractive  destination  in  the  world  to  do  business.  Home   Affairs  can  play  its  part  in  turning  the  situation  around  by  opening  our  doors  to  the   entrepreneurs  of  world.    A  simpler  hassle-­‐free  business  visa  regimen  can  contribute   to  this  aim.       The   current   regime   is   far   too   restrictive   and   unattractive.   There   are   too   many   requirements   and   the   process   is   far   too   restrictive.   Notwithstanding   the   diagnostic   mentioned   in   the   above   paragraph,   the   current   requirements   for   a   business   visa   make   South   Africa   an   even   more   unappealing   place   to   do   business.   A   five-­‐year   period   to   guarantee   the   returns   of   a   minimum   R5m   investment   is   too   short   and   therefore  risky  in  the  eyes  of  an  investor.    

The   current   regulations   require   no   less   than   11   conditions   for   first   time   foreign   investors  and  13  conditions  for  persons  who  have  already  invested  in  a  business  in   SA.     By   comparison   Brazil   simply   requires   a   Passport,   drivers   license   a   letter   explaining   the  nature  of  the  business  and  the  application  form.4     Considered  as  the  fastest  growing  economy  in  Africa,  Mauritius  offers  100%  foreign   ownership   with   NO   minimum   capital   required.   Individuals   wanting   to   start   a   self-­‐ employed  business  in  Mauritius  need  only  to  register  the  business  activity  with  the   relevant  department.5     The   National   Development   Plan   identifies   small   business   development   as   the   focal   point   towards   reducing   poverty,   unemployment   and   inequality.   South   Africa’s   Visa   regimen   should   support   this   plan   by   putting   in   place,   attractive   measures   to   influence  foreign  direct  investment  in  small  business  development.         Proposed  Solutions     v Instead   of   a   letter   of   recommendation   from   DTI,   a   document   proving   the   feasibility   of   the   business   and   having   to   prove   that   the   proposed   business   venture   will   contribute   towards   the   national   interest,   the   DTI   should   be   issuing  invitations  for  investment  and  not  bureaucratic  red-­‐tape.   v Introduce  a  small  business  visa  and  reduce  the  amount  of  capital  investment   by  half.   v Increase   the   period   of   a   business   visa   to   ten   years   for   R5m   and   5years   for   2.5m                                                                                                                       4 5

 http://visacentral.com/brazil-­‐visa    http://www.investmauritius.com/doing-­‐business/entering-­‐mauritius-­‐for-­‐business  

Critical  Skills  Visa     Current  regulations  require  that  critical-­‐skilled  applicants  provide  confirmation  from   professional  bodies  in  South  Africa  that  they  are  suitably  qualified.  However,  none  of   these  professional  bodies  are  obligated  in  terms  of  existing  legislation  to  issue  such   confirmation   letters.     This   indicates   that   such   applicants   are   at   the   mercy   of   the   professional   bodies.   If   these   bodies   do   not   have   the   means   and   capacity   to   issue   such  confirmations,  then  the  underlying  intention  of  the  department  is  invalidated.   Furthermore,   a   cursory   check   with   some   of   the   professional   bodies   confirms   our   concern   that   no   necessary   processes   or   procedures   have   been   implemented   to   prepare  for  any  influx  of  confirmation  requests.     There   is   also   no   appeal   mechanism   for   applicants   in   the   event   requests   for   confirmation  are  denied.     v Waive  the  requirement  for  confirmation  from  professional  bodies,  or   v Extend  the  date  of  implementation  of  this  requirement  until  such  time  that   professional   bodies   are   willing   and   able   to   issue   compliance   certificates   within  a  short  space  of  time.       Corporate  Visa     The   current   requirements   for   a   corporate   visa   only   deals   with   “general   work”   visa   applications.  It  does  not  take  into  account  the  potential  of  employing  critical-­‐skilled   foreigners.     Proposed  Solution     v In   order   to   encourage   the   employment   of   critical-­‐   skilled   foreigners,   the   requirements   for   this   visa   should   be   extended   to   include   provisions   for   the   employment  of  critical-­‐skilled  person.  In  this  instance,  the  current  restrictive   requirements   in   the   case   of   critical-­‐skilled   persons   should   be   waived   viz  

confirmation  of  a  diligent  search  of  a  similarly  qualified  person,  deportation   costs,   proof   of   the   need   to   employ   the   required   number   of   foreigners,   job   descriptions  and  remuneration  offer.     v A  critical-­‐skilled  foreigner  should  also  be  allowed  to  work  in  more  than  one   position  if  he/she  possesses  the  qualifications  for  more  than  one  critical  skill.     Intra  Company  Work  Visa     Current   regulations   stipulates   that   for   the   purposes   of   a   “general   work”   visa,   proof   must   be   provided   that   the   salary   and   benefits   are   not   inferior   to   the   average  salary  and  benefits  of  citizens.       This  requirement  is  NOT  extended  to  an  Intra  Company  Work  Visa.  The  impact  of   this   contradiction   is   that   foreign   companies   will   be   able   to   import   skills   from   low   cost   countries,   pay   these   individuals   salaries   that   are   inferior   to   South   Africans   and  therefore  alter  the  balance  of  the  job  market,  a  principle  that  the  regulations   intend  to  avoid.     Where  a  South  African  company  and  a  foreign  company  compete  directly  in  the   South   African   market   the   home   grown   South   African   company   is   forced   to   go   through  a  process  of  obtaining  a  labour  certificate  to  prove  that  a  South  African   is  not  available  for  the  job  before  applying  for  a  work  visa.    On  the  contrary,  the   foreign  owned  company  can  apply  for  an  intra  company  visa  without  needing  to   work   through   the   same   lengthy   process.   The   impact   of   this   is   that   the   South   Africa  business  would  face  higher  input  costs  than  the  foreign-­‐owned  competitor   and  eventually  be  forced  out  of  business.       Proposed  Solution     v Introduce  an  equitable  process  for  general  work  visas  and  intra  company   work  visas.  

The  Impact  on  our  Reputation     Undesirable  Persons     This  requirement  is  causing  massive  frustrations  to  both  South  African  citizens  and   foreigners  alike.     Thousands   of   South   African   citizens   have   active   personal   relationships   with   foreigners   living   in   the   country.   Many   of   them   have   married   South   African   citizens   and  have  children  born  in  the  country.  All  of  these  foreigners/permanent  residents   have   been   allowed   into   the   country   on   permits   granted   by   the   department.   These   permits   are   all   time-­‐bound,   will   expire   and   the   need   to   have   them   extended   is   predicable.   The   department   is   therefore   burdened   every   month   with   thousands   of   applications   for   extensions.   In   many   instances   the   department   is   unable   to   deliver   extensions   on   time   thereby   resulting   in   many   foreigners   overstaying   their   visas   whilst  their  extension  applications  are  still  pending.  Whilst  in  the  past,  a  penalty  was   imposed   for   over-­‐staying   a   visa,   a   new   more   stringent   punishment   is   being   meted   out  to  those  who  overstay  their  visas  by  marking  their  passports  numbers  as  being   undesirable  and  banning  them  from  re-­‐entering  for  a  period  of  up  to  5  years.     This   requirement   is   tearing   families   apart   and   is   an   attack   on   the   emotional   well   being  of  thousands  of  people  in  this  predicament.     The   introduction   of   an   appeal   mechanism   is   unfair,   (because   of   the   departments   inability   to   grant   extensions   on   time),   is   time   consuming   and   also   consumes   many   man-­‐hours  of  valuable  human  capital.         Proposed  Solution     v Extend   the   implementation   of   this   requirement   until   such   time   that   the   department   is   able   to   attend   to   extension   applications   within   a   reasonable   time  frame,  or  

v Allow   ports   of   entry   to   access   a   “visa   extension   applications   register”   in   order   to   determine   whether   or   not   a   traveller   who   has   overstayed,   is   awaiting   an   extension   application.   This   will   prevent   immigration   officers   from  marking  these  innocent  travellers,  as  “undesirables”  and  the  number  of   appeals  will  be  drastically  reduced.         Permanent  homosexual  or  heterosexual  relationship     In   order   to   qualify   for   this   visa,   an   applicant   has   to   prove   that   he/she   has   been   in   a   relationship   for   a   minimum   of   5   years.   This   appears   arbitrary   and   does   not   take   into   consideration   other   factors   that   can   prove   legitimacy   of   a   relationship.   For   eg,  a  foreigner  woman  living  in  a  relationship  with  a  south  african  citizen  for  three   years  with  two  children,  will  not  be  allowed  to  work  in  the  country  for  as  long  as   she  does  not  have  the  proper  permit.      The  regulations  also  do  not  recognise  polygamous  relationships  of  foreigners  yet   south  african  citizens  may  have  more  than  one  life  partner.     v The   regulations   should   make   allowance   for   other   factors   that   can   prove   legitimicy  of  a  relationship.   v The   regulations   should   not   discriminate   against   applicants   in   a   polygamous  relationship.            

Public  Education  Campaign       The   recently   implemented   immigration   regulations   have   introduced   significant   changes  to  the  original  visa  regime.       These   regulations   will   affect   the   lives   of   thousands   of   foreigners   already   living   in   the   country  as  well  as  the  millions  of  South  African  citizens  who  will  travel  abroad  with   children  in  the  years  to  come.     Many  citizens  and  foreigners  are  unaware  of  the  drastic  changes  to  the  immigration   regulations  and  will  not  make  provision  for  the  necessary  adjustments  to  their  travel   arrangements  and  permit  applications.  For  eg  permanent  residents  are  unaware  that   they   must   re-­‐appear   for   an   interview   at   a   DHA   office   in   the   last   six   months   of   the   second  year  that  their  permit  was  issued.       In  addition,  citizens  who  travel  with  children,  plan  overseas  travel  arrangements  by   booking   and   paying   online   unbeknown   to   the   new   unabridged   birth   certificate   requirement.  This  will  have  huge  cost  implications  for  citizens  when  UB  certificates   are  applied  for  late  or  not  applied  for  at  all.       Proposed  Solution     v The   department   should   embark   on   a   national   education   campaign   on   the   new  immigration  regulations.   v Travel   agencies   in   South   Africa   and   abroad   should   be   briefed   and   the   new   regulations  should  be  widely  communicated/distributed.       Haniff  Hoosen,MP   DA  Shadow  Minister   Home  Affairs  

DA SUBMISSION_immigration regulations.pdf

corporate/business visas and other visas that do not require biometrics. validation in the application process. In pursuit of remaining profitable,. private practitioners will source potential investors in many countries abroad. and will facilitate the ...

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