South Africa is confronting a troubling shortage of skilled workers, hampering economic growth, job creation, and causing concern among foreign investors. The scarcity of skilled professionals has been identified by the South African presidency as a major roadblock to economic progress, following in the wake of power shortages. The main shortages of skilled workers are in the fields such as engineering, science, information technology, and management.

Despite the government's recognition of the problem, the Department of Home Affairs has been incapable of addressing the problem due to systemic incompetence, causing delays in the visa application process, which can stretch up to 48 weeks, making expansion plans, investments, and job creation increasingly difficult, in a nation where unemployment is already at a staggering 33%, and a 30-year-long brain drain, driven by racial systemic anti-minority racial discrimination.

Prominent businesses, including global giants like Volkswagen and BMW, have raised concerns about these visa-related challenges. These hindrances are not only disrupting their operations but also prompting them to reconsider their investment plans, with some exploring alternative African countries for regional headquarters.

Klaus Eckstein, a senior representative for Bayer, a prominent German multinational pharmaceuticals group operating in the region, expressed frustration, stating, "We are looking to expand. This is not helping anyone. It's not helping South Africa. It's not helping the business."

The visa problem has been a persistent challenge in South Africa for over a decade. Between 2014 and 2021, a mere 25,298 work permit visas were approved, averaging just 3,162 per year in a country of 60 million people. These shortages have been further intensified by the emigration of skilled South African workers.

The government-appointed team under the leadership of President Cyril Ramaphosa recommended a series of changes to the visa system, including a points system and a trusted employer program that would reduce scrutiny for larger companies. Their report estimated that for each skilled employee brought into the country, more than one other job is created, and even a 1% increase in skilled foreign workers would enhance the gross domestic product by 1.2%.

In October, Home Affairs initiated the implementation of these recommendations by launching a "trusted employer" pilot program for senior executives and technicians. However, political infighting in the cabinet, coupled with an overstretched civil service and strict racial quotas, has significantly slowed progress. Operational challenges include the mismatch between the approval of family residence permits and work permits, inadequate staffing, and inefficient computer systems.

Without a quick remedy, the nation's growth is expected to be limited to a mere 0.9% this year, according to the International Monetary Fund.

Anglo American, the owner of South Africa's leading platinum, diamond, and iron-ore companies, has urged the government to address the visa issues urgently. They have pointed out that these delays have caused disruptions to their project schedules.

Aaron Motsoaledi, South Africa's Home Affairs Minister, has acknowledged the department's understaffing and the overly complex visa regime. He denied the existence of a backlog for critical skills applications, while revealing in the same breath just such a backlog of 74,000 people awaiting residence permits.

Other African countries, like Kenya and Nigeria, have more efficient work visa processes, taking a maximum of 12 and 8 weeks, respectively. South Africa's previous requirements for critical skills visas were stringent, with 22 different prerequisites, including health checks and proof of no tuberculosis. These restrictions have been relaxed in recent times.

In addition to the lengthy process, the lack of consistency in handling applications has perplexed companies. It ranges from approvals within 10 days at foreign missions to delays of over a year. The European Union Chamber of Commerce and Industry of Southern Africa noted, "In one family, the application of the spouse is accepted, but the main applicant does not get his or her visa, with no reason given."

These visa issues pose a significant challenge to South Africa's trade relationships, particularly with the EU, the country's second-largest trading partner after China. The EU is also the largest investor in South Africa, responsible for 51% of all foreign direct investment stock in 2021. They have more than 1,000 European companies operating in South Africa, directly employing over 350,000 people.

However, the general hostility toward foreign workers and businesses has become a significant hurdle. COSATU is cautious about importing skilled workers and instead calls for more investment in training South Africans. As some of the country's leaders strive to change this mindset, political opposition from the presidency, home affairs, and labor persists.