Visa delays threaten $81Mn and 4,530 jobs in South Africa
WESTERN CAPE, SOUTH AFRICA — The business process outsourcing (BPO) sector in South Africa is now facing a critical threat due to delays in visa processing by the Department of Home Affairs (DHA).
These delays relate to the processing and finalization of a small number of critical skills, spousal work visas, spousal, life partner, and permanent residency visa applications for training experts. These experts are needed to upskill and train employees in the sector, thereby enabling the creation of more South African jobs.
Hundreds of BPO jobs in South Africa affected
Provincial Minister of Finance and Economic Opportunities, Mireille Wenger said that “at least 4,530 existing local jobs at a cost of ZAR1.585 billion ($81 million) and 300 new jobs for South Africans are at stake because of delays at the Department of Home Affairs.”
The sector is a significant contributor to the country’s economy, injecting approximately ZAR35 billion (S1.93 billion) and supporting 100,000 jobs nationally, with 60% of these jobs located in the Western Cape.
Minister Wenger further elaborated on the economic impact: “Based on preliminary calculations and information received from just six of the BPO companies based in the Western Cape, these delays have already cost our economy 50 jobs at an approximate value of ZAR17.5 million ($956,000). I am also aware of at least one application that was outstanding for two years as of last Friday, 17 May 2024.”
Need for efficient visa processing
The efficient processing of visa applications is crucial for the growth of the private sector, including the BPO industry.
Minister Wenger emphasized the need for the DHA to be a key partner in creating an enabling environment that supports economic growth and job creation.
“These most recent examples from just one sector show how the continued backlogs and bungling of visa applications are choking growth and jobs,” she stated.
Government support for South African BPO industry
Minister Wenger also highlighted the efforts of the Western Cape Department of Economic Development and Tourism (DEDAT) in supporting the BPO industry.
“DEDAT’s work with the BPO industry has shown that with the right combination of work readiness training, stipend support, and structured educational programmes, we can make a meaningful impact on the lives of residents, giving them dignity and hope for a better future.”
To ensure the continued growth of the BPO sector, Minister Wenger called for immediate action from the DHA.
“We need the critical skills, expertise, and investment of the businesses that will open the world up to our residents. And here, quite simply, we need DHA to do its work by processing visa applications timeously.”
Minister Wenger stressed the importance of collaboration: “By working together, we can and must enable the growth of industries that are wanting to invest in South Africa, in the Western Cape, and ultimately in our residents, so that they have the opportunities they need to connect our wonderful South African talent to the world.”
