Visa chaos puts R1,5bn and 4 530 South African jobs in BPO on the line

The business process outsourcing (BPO) sector contributes significantly to the national economy, injecting approximately R35 billion into the economy and supporting 100 000 South African jobs nationally, with 60% of those jobs being in the Western Cape.

“The BPO sector employs, trains and upskills tens of thousands of South Africans to provide world-class professional business services to global clients. The Western Cape Government is immensely proud of the partnership we have with this burgeoning sector. However, at least 4 530 existing local jobs at a cost of R1.585 billion and 300 new jobs for South Africans are at stake because of delays at the Department of Home Affairs (DHA). These delays relate to  processing and finalising of a small number of critical skills, spousal work visas, spousal, life partner, and permanent residency visa applications for training experts, who are needed to upskill and train employees in the sector, thereby enabling the creation of more South African jobs,” announced Provincial Minister of Finance and Economic Opportunities, Mireille Wenger.

Minister Wenger continued, “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 R17.5 million. I am also aware of at least one application that was outstanding for two years as of last Friday, 17 May 2024.”

The efficient processing of visa applications is vital to the growth of the private sector, including the BPO industry and in pursuit of growing the economy, creating jobs and providing opportunities for skills transfers. In this way, the DHA should be a key partner in creating an enabling environment which supports economic growth and job creation. But these most recent examples from just one sector shows how the continued backlogs and bungling of visa applications is choking growth and jobs.

Minister Wenger added, “The Western Cape Department of Economic Development and Tourism’s (DEDAT) work with the BPO industry has shown that with the right combination of work readiness training, stipend support and structured educational programmes as well as awareness about the opportunities in the sector, we can make a meaningful impact on the lives of residents, giving them dignity and hope for a better future. To ensure that this immensely beneficial partnership continues to thrive, 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.”

She continued, “As part of our commitment to growing the industry and developing confidence and certainty in South Africa being truly ‘open for business’, DEDAT has offered assistance to the DHA with any preparatory work required to enable the relevant officials to take a decision on the applications as part of a ”Fast Track to BPO Growth” project, if needed.”

“The fact is that our economy and people cannot afford to lose even one potential local job. 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,” concluded Minister Wenger.