Proposed changes to South Africa’s Employment Services Act could close South Africa to new skills coming in and be a possible disincentive to new foreign direct investment (FDI), said executive director of the American Chamber of Commerce South Africa (AmCham SA), Carol O’ Brien.
She told FTWO that AmCham – which represents 250 of the 600 US companies with operations in SA – was engaging with the relevant authorities to make its concerns known.
“This Act wants to move the management of work permits from Home Affairs to the Department of Labour (DOL) which will certify that no jobs are given to expats that can be managed by South Africans,” explained O’ Brien.
She commented that although American companies employed primarily South Africans – at least 98% of employees were South African, said O’ Brien – there were certain positions that required advanced skills that were not available in South Africa.
“An act of this nature will close South Africa to new skills coming in,” said O’ Brien.
Proposed Employment Services Act changes a disincentive for FDI?
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