SA immigration laws 'hurting'
19/04/2006 21:49

Johannesburg - International companies have warned that South Africa's immigration regulations are hurting their operations in the country and could create obstacles for faster economic growth, the London Financial Times reported on Wednesday.

Business groups had recently called for the amendment of new rules that made it difficult for some foreigners to work in the country, the report said.

"Last week the British Chamber of Business in Southern Africa said immigration problems are having a detrimental impact on the short-term effective running of local and international business in South Africa.

"A lot of problems"

"This followed a statement in late March by the Foreign Correspondents' Association of Southern Africa that the new immigration regime had 'created a lot of problems' for its members," the Financial Times said.

"Deloitte, PwC and KPMG are circulating among foreign business chambers a draft letter to ministers in President Thabo Mbeki's government calling for an easing of rules on general work permits, intracompany transfers and quotas for skilled migrants," the report added.

The letter, seen by the FT, claims that new immigration rules "impact very negatively on the availability of skills and experience" to foreign and local businesses operating in South Africa and could hamper further foreign investment and economic growth.

"South Africa revised its immigration law last July. The new legislation removed a number of loopholes and exemptions under which skilled foreigners worked in the country. It was designed to streamline existing rules," the Financial Times said.

Refused extensions

"Since then some foreign executives and journalists have been refused extensions to their two-year intracompany work permits, or been asked to leave the country and apply from abroad.

"Before the legal changes, extensions were more easily available.

"Foreign companies are also being asked to advertise expatriates' jobs locally, even for positions of senior executives with international experience.

"Companies seeking exemptions from the rule say they have been refused or had to wait for months to secure one," the newspaper concluded.

Information supplied by www.fin24.co.za