FAQ » Change of Immigration Legislation
Change of Immigration Legislation 1 July 2005

On 1st July 2005, the Immigration Amendment Act and renewed Immigration Regulations were promulgated.

Officially, the amendments were intended to correct legal errors, to close gaps, to make the application of the laws simpler and to improve the conditions for investors to South Africa. Although South Africa’s dire need for direct foreign investment is acknowledged, the government is increasingly differentiating between various types of investment and puts more and more value on a particular investment or foreigner’s contribution to the country’s sustainable growth and to employment creation.

The new legislation brings about some positive changes and clarifications and makes the immigration laws more user-friendly. Some requirements for work permits have been abolished (on the other hand, new ones were introduced and exemptions were removed) and the financial requirements for retirees have been structured more logically. However, the law also contains some elements which will be to the disadvantage of applicants and, in our opinion, also work against the country’s goals of attracting foreign investment and promoting sustainable growth. Especially in the practical implementation of the amended legislation, substantial problems and weaknesses have emerged.

Changes implemented after much debate and with enormous effort in 2003, have partly been reversed and in many ways the status quo of the previous system has been restored. In some areas (for instance, in the case of the business permits), the requirements are now even stricter than before 2003. The Department has been given back much of the discretion that had purposefully been transferred to other experts in 2003, the review and appeal procedures have been significantly shortened and the express obligation for the Department to endeavour to process all applications within 30 days from submission was abolished again.

The legislative changes unfortunately lack a clear direction and vision, and it appears that the importance of immigration law in all its details for South Africa’s development and growth is being underestimated. Instead of attracting investors, the changes have caused confusion and bewilderment and have therefore failed to meet one of the Minister’s prime goals.

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