Demonstrating economic merit and contribution to South Africa is set to become a central requirement in immigration policy, with proposals to assess applications for work visas, and permanent residency on criteria strongly linked to how foreign nationals contribute to the country’s economy.

As part of a proposed immigration overhaul, set out in the Draft Revised White Paper on Citizenship, Immigration and Refugee Protection (CIRP), the Department of Home Affairs (DHA) also wants to introduce higher age thresholds for granting retirement visas for long-term stay, alongside plans to further refine work visa categories to better attract the foreign skills the local labour market needs. Significant fiscal changes are proposed that could see the South African Revenue Service (SARS) tax all immigrants regardless of their status, while the Border Management Authority may levy administrative fines on visa overstayers as a practical enforcement mechanism to address compliance concerns.

The Department says the revised document, published in the Government Gazette on 12 December 2025, positions immigration policy as a direct economic enabler, while strengthening national security, tightening compliance, fiscal oversight and administrative efficiency.

Public comment on the draft paper must be submitted by 31 January 2026.

Commenting on the publication of the Draft Revised White Paper, Marisa Jacobs, Managing Director at Xpatweb and member of the Ministerial Immigration Advisory Board, says: “This White Paper sends a clear signal that South Africa is repositioning its immigration system around merit, skills needed, and economic contribution. Taken together, the proposals point to a recalibration of the immigration policy.”

She further notes that for employers, the reforms promise greater predictability and alignment between immigration pathways and economic priorities, particularly in skills-constrained sectors. For migrants, the emphasis shifts away from length of residence alone toward demonstrable skills, contribution, and compliance.

Why The System is Changing

Dr Leon Schreiber, Minister of Home Affairs, said the Draft Revised White Paper outlines a vision for the most fundamental reform to South Africa’s citizenship, immigration and refugee protection frameworks in a generation.

According to the revised version South Africa’s current visa regime fails to attract the migrants needed to drive economic growth. Work and business visas represent only a small fraction of total applications, while family-based and humanitarian visas dominate overall application volumes.

Data in the gazette shows that between April 2021 and March 2025, the DHA received:

• over 122 000 applications for section 11(6) visitor’s visas, used by spouses of citizens or permanent residents who wish to work or conduct business;
• 18 320 for General Work visas;
• 12 944 Critical Skills Work visa; and 
• just 435 Business Visa applications.

Relative’s visas account for 28% of applications, while critical skills and business visas make up just 5% and 1% respectively. The DHA concludes that “far too few applications” are coming through the categories most closely linked to economic growth.

New Visas for an Evolving Economy

To address the gaps identified, the draft paper suggests a rationalisation of existing visas and the introduction of several new categories.

A flagship reform would be the Skilled Worker Visa, replacing and combining the current Critical Skills and General Work visas with a single, employment-based pathway spanning different skill levels. Employers would sponsor foreign workers for the duration of their contracts, with renewals linked to continued employment.

Existing business visa requirements are limited to established businesses and do not cater for persons that may want to reside in South Africa to establish a new business venture with potential economic benefits. As investment are also central to the reforms, a proposed standalone Start-Up Visa will attract innovators and entrepreneurs with ideas to boost the economy and mirroring “innovation visa” models used elsewhere in the world. The existing Business Visa would be converted into an Investment Visa, with minimum capital thresholds and employment quotas set by sector and updated regularly.

Other prospective categories include Sectoral Work visas to replace the current corporate visas, and a new Sports and Arts Visa aimed at performers, athletes, coaches and industry professionals – intended to strengthen South Africa as a competitive global sports and entertainment destination and support growth in those industries.

Retirement Visa Under Scrutiny

The draft White Paper also targets perceived abuse of the Retired Person Visa category. Unlike many countries, South Africa currently has no set age limit to qualify for this visa, resulting in visas being issued to applicants as young as 25. 

DHA data indicates that approximately 65% of applicants are under the age of 55, with evidence suggesting that some later take up employment. “This constitutes abuse of the visa, which is being used to circumvent work visa requirements,” the DHA states.

The White Paper proposes introducing a minimum age threshold, increasing financial requirements in line with the cost of living in South Africa, and allowing waivers only in exceptional cases, such as for wealthy individuals seeking early retirement. 

In parallel, the current Financially Independent Permanent Residence permit would be replaced by an investment-based financial independence residence visa, requiring a portion of an applicant’s net worth to be invested in South Africa for a defined period.

Merit-based Economic Pathways to Citizenship

The Department reiterates that citizenship decisions should not be arbitrary but instead reserved for individuals who demonstrate commitment to South Africa’s economic and social development.

A Points-based system (PBS) would assess permanent residence and citizenship applications using objective eligibility criteria to ensure transparency, accountability, and alignment with national priorities. Applicants with critical skills, those who create jobs, invest in businesses, or contribute to economic growth would score higher, while additional weight would be given to meaningful community service, research, or innovation that benefits the country.

The Minister describes this as a shift away from permanent residence eligibility based primarily on length of stay, toward a merit-driven system. Similar frameworks are used in countries such as Canada, Australia, and the United Kingdom, where points thresholds are adjusted to reflect changing economic priorities.

Taxing and Banking All Immigrants

Beyond visas, the reforms have a strong fiscal dimension. Legislative amendments are proposed to allow banks and SARS to bank and tax all immigrants, regardless of immigration status. This will enable government to monitor, tax and enforce legal compliance on all financial flows in the country.

Conclusion

As South Africa prepares to recalibrate its immigration system, early engagement and careful planning will become increasingly important for employers, investors, and migrants. 

Jacobs concludes: “Especially HR leaders, global mobility professionals, multinational employers, and foreign national employees should take note of the proposed policy changes and engage constructively during the consultation phase, as policy intent at White Paper stage directly shapes future legislation, regulations, and implementation.”

Written by Xpatweb