Andrew Stegmann

South Africa: All South African visa applications filed in India to be submitted through VFS

South Africa: All South African visa applications filed in India to be submitted through VFS

Effective 1 June, all South African visas filed in India must be submitted through VFS Global in India. VFS Global is a popular third-party visa and passport processing agency through which several countries outsource many of their consular procedures. VFS Global has long processed short-term visa applications for South Africa; however, before 1 June, the High Commission of South Africa in Mumbai previously maintained authority over all long-term visa applications (including those for employment purposes).

Shortly after the 1 June transition, VFS Global made several amendments to the document requirements for Intra-Company Transfer Work Visa applications. Beyond adding a new processing fee of INR 1,382-1,643 (USD $20-25) for all applications, the following new documents and/or information must be provided for the local South African worker as part of the required Skills Transfer Plan documentation:

  • Certified national identification
  • Certified educational qualifications
  • Certified resume

Employers should anticipate a possible delay in processing times due to the transition of all visa applications to VFS Global the increase in application volume.

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Andrew Stegmann

President Magufuli: Tanzania’s Robin Hood

President John Magufuli may be reducing corruption and security risks but has also influenced a trend toward increased risk of expropriation, creating uncertainty for foreign investors.

Tanzania’s government has commenced a national project which will see undeveloped land larger than 20 hectares seized from investors and given to farmers. In May 2016 alone, the government expropriated over 1,800 hectares of land and allocated it to poor Tanzanians; 80% of whom rely on agriculture for their livelihood.

The programme is being implemented because of the widespread problem of investors in agriculture and energy not meeting the requirements of their title deeds, which stipulate that a title holder should develop land within three years rather than holding onto it for ‘speculative value’.

William Lukuvi, Minister for Lands, Housing and Human Settlements Developments, claims that this policy will reduce security risks, such as clashes between communities competing over scarce resources.

The government and particularly President Magufuli have also made significant efforts to curb corruption, which has generated substantial popular support and impressed international donors. He has removed 10,000 ‘ghost workers’ from the government payroll and has on multiple occasions fired officials on the spot for suspected corruption or poor work-ethic. Most recently, he fired Charles Kitwanga, Minister of Home Affairs, on May 20th for attending parliament whilst drunk.

Such policies are undeniably beneficial for marginalised Tanzanians, but have at the same time led to uncertainty in the business environment – a trend that has characterised Magufuli’s presidency since he stepped into office in November 2015.

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Andrew Stegmann

Flower Growers In Africa Gaining Dominance Over Netherlands In Global Trade

Flower growers in Africa are increasingly selling direct to buyers, cutting out the middlemen at the Netherlands’ centuries-old auction house co-op — the world’s biggest for flowers — Reuters reports.

The country grew rich selling tulip bulbs in the 17th century during the Dutch Golden Age and it is the second largest agricultural exporter after the U.S.

For decades the FloraHolland cooperative was a hub from which planeloads of flowers from around the world were distributed from vast, air-conditioned warehouses in Aalsmeer, near Amsterdam airport.

The company says it distributes almost half of all flowers sold worldwide. In 2015 it reported sales of $5.13 billion US, mostly by matching growers and buyers at its early-morning daily auctions. But flower sales directly from growers to buyers have overtaken those sold through FloraHolland’s auctions, said FloraHolland CEO Lucas Vos in a Reuters interview.

Direct sales from co-op members who bypassed the auctions rose by 3.8 percent to $2.59 billion US in 2015. Auction sales stood at $2.37 billion, down 1 percent.

Energy and labor costs are the main reasons that the roses are grown
in Africa these days, said Arie van den Berg, a second ­generation Dutch rose grower
who has shifted the bulk of his production to Kenya and China, NewYorkTimes reports.

His company, Van den Berg Roses, still grows valuable and exotic flowers in the Netherlands, but cheaper roses are mostly grown in Africa and sold directly to big retailers such as the German discount chain Lidl or British supermarket giant Tesco,
which prefer fixed contracts to the daily fluctuation of the auction clock.

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Andrew Stegmann

Wealthy South Africans Seeking Foreign Citizenship Doubles In 2016

The number of ultra high net worth South Africans seeking foreign citizenship or residence permits by investment has doubled in 2016, says Henley & Partners.

“It’s not like all those years ago when South Africans left to Australia. Now, South Africans are realising that they don’t physically have to pack up and go. They can make wise offshore investments and gain foreign passports and/or residence, and give their families more security at the same time,” said Sandra Woest, a senior partner at Henley & Partners local office.

According to Woest, 300 to 350 South Africans have approached the citizenship and residence planning firm over the past 12 months. She said this was an increase on the previous year’s queries but would not be drawn into detail as to how many people completed the process by securing either citizenship or residency abroad. She said 95% of the people she deals with do not wish to leave South Africa but rather view gaining foreign citizenship or residency as a “plan B” and a form of security against political and economic uncertainty.

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