Home Affairs law is Anti Local Immigrant’s Entrepreneurial Spirit

Home Affairs law is Anti Local Immigrant’s Entrepreneurial Spirit

Findings reveal that the immigration law of the South African Home Affairs department has no provision for foreigners living in South Africa to migrate from Temporary Residence Permit to Business Permit.

One of the core requirements for a business permit in South Africa states that “foreigners who are contemplating investing in the South African economy by establishing a business or by investing in an existing business in the country must apply for a business visa, if it is his or her intention to be employed in the business”.

It further states thus: “The following documents must form part of a business visa application:
A certificate issued by a Chartered Accountant or a Professional Accountant registered with the South African Institute of Professional Accountants to the effect that you have at least R5 000 000 available in cash, or at least R5 000 000

in cash and capital to be invested in the Republic.
A recommendation from the Department of Trade and Industry regarding the feasibility of the business and the contribution of the business to the national interest of the Republic.

An undertaking that at least 60% of the total staff compliment to be employed in the operations of the business shall be South African citizens or permanent residents employed permanently in various positions

” .

With this stringent requirement, foreigners living in South Africa cannot become business owners. This requirement only considers foreigners who live outside South Africa.

However, there are lots of immigrants in South Africa who are currently on Temporary Residence Permits such as Accompany Spouse, Work Permit, Critical Skill Permit et al.

Some of the people in these categories have invested R5million or more in the South African economy yet their Business Permit applications are often declined.

The Home Affairs letter detailing reasons for declining their applications often says “there is no proof that a sum of R5million originates from outside South Africa”.

Foreigners in South Africa pray that this huge gap in the law should be closed as soon as possible.

A Nigerian Chartered Accountant in Braamfontein refused to issue a letter to a Nigerian business on the premise that no matter how much he has invested into South Africa, Home Affairs will not issue him a business permit.
The accountant showed nigeriansinsouthafrica.co.za a few letter from Home Affairs showing

the declinee of application for a business permit for immigrants who live in South Africa, even if they have invested up to R5million.

Donald Abayi, a Cameroonian business man in Braamfontein laments that the Home Affairs law discourages the growth of Small and Medium Scale Enterprises amongst foreigners in South Africa.

He whined thus: “Where will I get a R5million when I am just starting a business. There should be a permit for small businessmen and small businesses”.

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Femi Oshin
Femi Oshin 185 posts

Femi Oshin is a publisher at Nigeriansinsouthafrica.ca.za and Producer /Presenter of Agogo Ayo on Africa Magic Yoruba.

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