Policy research institution, the Centre for Development and Enterprise (CDE), has called on Parliament to reject the current Immigration Amendment Bill and to instruct officials to draft a new version that would make the country more attractive to skilled immigrants.

South Africa would need a system that would attract “as many skilled foreigners as possible”, if the country were to achieve President Jacob Zuma’s stated goal of 7% a year economic growth over a sustained period, said executive director Ann Bernstein.

In a written submission to the Portfolio Committee on Home Affairs, the CDE argues that the Bill in its present form could lead to an even more restrictive migration regime.

The Bill seeks to abolish the current scarce skills quota system, which severely restricts skilled immigration. However, in its stead it gives the Minister and the director-general extensive discretionary powers to determine key aspects of migration policy and strategy with no guidelines as to how they might implement the new regulations.

Indications that the Bill would result in a more restrictive regime, include the introduction of the term ‘critical skills’ in the place of ‘exceptional skills’, which suggested higher qualifying standards, the requirement that applications for ‘critical skills’ permits be treated on a case-by-case basis, with no indication that people who possess the skills in question would in fact be granted permits; only issuing business permits to businesses deemed by the director-general to be in the ‘national interest’, and restricting applications for corporate permits to businesses in certain economic sectors to be prescribed by the director-general rather than making them available to businesses across the economy.

The CDE argued that it was undesirable, in principle, for Parliament to delegate such extensive policy making authority to the Minister and the director-general.

The CDE warned that the lack of clarity about how present and future officials might shape migration policy would lead to uncertainty within the bureaucracy and among prospective immigrants and employers.

“It may also impact on investor perceptions and confidence, making it more difficult to attract and recruit the skilled foreigners we need,” Bernstein said in the CDE’s submission to the portfolio committee.

The CDE argued that migration policy should be a key component of a competitive economy.

Bernstein stressed that South Africa’s skills shortage was among the most significant constraints in terms of the capacity of the economy to grow and create jobs.

More rapid economic growth required that the country attract much larger numbers of skilled foreigners, with skills defined broadly enough to include not just people with academic qualifications, but also those with practical and technical skills or business experience.

This makes migration policy reform a “vital strategic lever” for transforming the economy and enhancing national development.

The submission calls on the committee to refer the Bill back to the Department of Home Affairs and direct it to formulate a policy that would attract a large number of skilled immigrants.

It also recommends that no further ad hoc legislation be adopted until a new migration strategy has been developed and articulated in a White Paper.

“While migration policy reform is urgently needed, ad hoc changes will not be helpful in the long term, and reforms must be based on clear policies linking migration directly with more rapid economic growth,” said Bernstein.