South Africa Expands Trusted Employer Scheme to Boost Local Hiring and Investment
In response to rising public concern over unemployment and the perceived impact of foreign labour, the South African Department of Home Affairs has announced the second phase of the Trusted Employer Scheme (TES). Building on a pilot that granted faster visa processing to a limited group of trusted firms, the expanded programme now opens its benefits to a broader range of sectors while tightening requirements for local employment, skills development, and economic investment.
Why the Scheme Was Introduced
The initial TES pilot emerged from the government’s broader immigration‑modernisation agenda, aiming to cut bureaucratic delays that have historically deterred foreign direct investment. According to a 2023 Home Affairs discussion paper, lengthy visa processing times were cited by 42 % of surveyed multinational firms as a barrier to setting up regional headquarters in South Africa [1]. The pilot demonstrated that accredited employers could obtain work visas for key staff within 10 working days, compared with the standard 30‑day average.
However, the pilot also coincided with a surge of anti‑immigration protests in major cities, where demonstrators argued that foreign workers were taking jobs that could go to South Africans. The government’s latest move seeks to address both investment needs and domestic labour concerns by linking visa privileges to concrete local‑hiring and skills‑development commitments.
Eligibility Criteria for Phase II
Only companies that receive formal accreditation from the Department of Home Affairs may participate in TES II. Accreditation is not automatic; firms must first submit an expression of interest, after which the ministry evaluates their application and reserves the right to grant or refuse membership.
To qualify, an employer must demonstrate:
- Meaningful financial investment in South Africa (the threshold varies by sector but generally exceeds ZAR 50 million over three years).
- A workforce composed of at least 60 % South African citizens or permanent residents.
- Active investment in local skills development, such as apprenticeships, bursaries, or partnerships with technical colleges.
- Operation within priority economic sectors identified by the National Development Plan, including energy, transport, telecommunications, and advanced manufacturing.
The 60 % local‑workforce rule is a direct response to the demand voiced by anti‑immigration groups that South Africans be given priority in the labour market.
Benefits for Accredited Employers
Once approved, companies gain access to streamlined immigration procedures for specific categories of foreign talent:
- Executives and senior managers.
- Technical specialists and engineers.
- Business professionals involved in regional or global headquarters functions.
- Investors seeking to establish or expand strategic infrastructure projects.
These applicants benefit from priority processing, reduced documentation requirements, and, in many cases, a decision window of under two weeks. The Home Office states that the goal is to “remove administrative delays that have long been cited as a barrier to investment” while ensuring that the foreign workers brought in fill genuine skills gaps that cannot be met locally.
Strategic Focus: Infrastructure and Headquarters
Phase II deliberately expands the scheme’s scope beyond the initial pilot’s focus on manufacturing and services. The Department of Home Affairs highlights two strategic tracks:
- Companies engaged in large‑scale infrastructure projects—such as renewable‑energy farms, port expansions, and rail upgrades—where specialised expertise is often scarce domestically.
- Firms establishing or operating regional or global headquarters in South Africa, which the government views as a catalyst for knowledge transfer and high‑value job creation.
By targeting these areas, the scheme aligns with the national objective of positioning South Africa as Africa’s premier investment destination, a goal reiterated in the 2024 Investment Promotion Strategy.
Government Rationale
Officials argue that the tightened local‑hiring requirement does not contradict the aim of attracting foreign capital. Instead, it seeks to ensure that “foreign workers complement, rather than displace, the local workforce,” as stated in the official gazette announcing TES II [2]. The policy is presented as a balanced approach: faster visas for needed expertise, coupled with enforceable quotas that protect South African employment prospects.
Public and Industry Reaction
The announcement has elicited mixed responses. Business groups such as the Business Unity South Africa (BUSA) have welcomed the processing improvements, noting that “reduced visa turnaround times will enhance our competitiveness for multinational projects” [3]. Labour unions, however, caution that the 60 % threshold must be rigorously monitored to prevent abuse, calling for regular audits and penalties for non‑compliance.
Civil‑society organisations focused on migrant rights have expressed concern that the scheme could still create a two‑tier labour market, urging the government to pair the programme with robust enforcement mechanisms and pathways to permanent residency for long‑term foreign workers.
Looking Ahead
The Department of Home Affairs plans to review the first six months of Phase II participation, assessing metrics such as visa processing times, local‑employment percentages, and skills‑development expenditure. Adjustments to the eligibility thresholds or benefit structure may follow based on those findings.
For now, the expanded Trusted Employer Scheme represents a tangible effort to reconcile South Africa’s dual imperatives: attracting the global talent and capital necessary for economic growth, while safeguarding job opportunities for its own citizens.
[1] Department of Home Affairs, “Immigration Processing Times and Investment Attraction,” Discussion Paper, 2023.
[2] Official Gazette, Notice No. 2024/012, “Trusted Employer Scheme – Phase II,” 15 March 2024.
[3] Business Unity South Africa, Press Release, “BUSA Welcomes Faster Visa Processing for Trusted Employers,” 20 March 2024.
