By Nora Dawud
It is time for South Africa to open its border as this is key to unlocking job opportunities.
When South Africa went into lockdown in March, it had the highest unemployment rate out of all the major economies in the world, recorded at 30.1% in quarter 1 (Q1) this year. On the back of an expected increase in Q2, as a result of the impact of Covid-19, it is vital to find ways to boost employment opportunities.
This can be done by encouraging international businesses to open their doors in South Africa and thus unleash more job opportunities. This will also assist with bringing talent into the country in order to grow the critical skills we so desperately need. It will also assist in upskilling locals.
The results of the Xpatweb’s 2019/20 Critical Skills Survey reveals the skills employers find difficult to attract when it comes to local recruitment, with ICT being at the top of the list, at 19%. One of the foremost reasons for South Africa’s economic woes is a shortage of technical, managerial and e-commerce skills. The tech space is a key sector for growth opportunities, particularly in the fintech, healthtech, insurtech and business process outsourcing industries.
As economies across Africa have experienced tremendous growth powered by technology, South Africa is leading the charge. The country boasts one of the continent’s largest and most advanced technological industries, with strength in mobile and financial software development. This presents great business opportunities for international companies that operate in this industry to come into our market.
South Africa also presents many advantages for international businesses, especially from Europe, as it offers a similar time zone.
With the international borders reopening on October 1, at midnight, following the announcement of alert level 1 by President Cyril Ramaphosa, key pointers the government can consider to encourage international companies to open in South Africa: Introduce tax benefits: Mauritius and Malta have tax advantages for international companies. For example, in Mauritius, offshore companies can benefit from double taxation treaties and tax exemptions. Malta offers double taxation treaties with 50 countries as well as significant tax refunds for company shareholders.
Flexible immigration rules: Every foreign skilled person contributes to economic growth, which creates work opportunities for locals. However, visa regulations have impacted this and need to be relooked at.
In order to tackle the unemployment rate, it is vital the government and the private sector work together to boost economic growth.
Encouraging as much skilled immigration as we can attract, along with encouraging international companies to open in South Africa, is one way to start unlocking job opportunities and upskilling South Africans.
Xpatweb runs the annual critical skills survey among large multinationals and corporates in South Africa. The purpose is to identify pressure points concerning the shortage of critical skills. The survey has grown year on year and 2019/20 is no exception, with record number of 178 companies, including JSE-listed companies and large multinational groups across Africa, participating.
Nora Dawud, is the founder and chief executive at Black Pen Recruitment and Immigration Specialists.
The Star