(Photo: Shiraaz Mohamed/AFP)
The government must explain how thousands of foreign-owned companies do business across South Africa, while only 33 business visas were approved in the latest financial year.
This according to Lerato Ngobeni, ActionSA’s chief whip in parliament, after a parliamentary answer according to her raised serious questions about the application of South Africa’s immigration laws.
According to Ngobeni, the Immigration Act requires foreigners who want to establish businesses in South Africa to have a valid business visa. In most cases, they must also provide proof of a minimum capital investment of R5 million.
“The Minister of Home Affairs has confirmed that only 204 business visas have been approved since 2020. Of these, only 33 were granted during the 2025/2026 financial year.
“These figures stand in stark contrast to the government’s own admission that more than 30,000 foreigners have recently applied to register their businesses during the spaza shop registration process.”
(Photo: Shiraaz Mohamed/AFP)
Numbers don’t add up
Ngobeni says the information raises a simple but important question.
“If only a handful of business visas were granted, on what basis are the thousands of other foreign business owners running their businesses?”
“The numbers simply don’t add up. Something’s not right.”
According to Ngobeni, there are only two possible explanations.
“Either thousands of businesses are operating without the required business visas, or the government does not have a proper system in place to ensure that its own immigration laws are complied with.
“Both possibilities indicate a serious lack of control and supervision.”
Questions about law enforcement
Ngobeni believes the inconsistency raises serious concerns about the way in which legislation is applied.
“This raises questions about whether municipalities do check immigration status before issuing trade permits; whether the Department of the Interior is doing its job to enforce the Immigration Act, and whether government departments are cooperating at all with each other to detect violations.”
According to Ngobeni, the government should give clear answers about the extent of the problem.
“The public has the right to know how many foreign companies are doing business in the country, under which permits or visas they operate and whether they meet the legal requirements.”
Police officers conducting a routine inspection at a store. (Archive photo: SA Police)
#Spaza4Locals campaign
Ngobeni says the parliamentary response confirms the concerns that ActionSA has been expressing for some time through its #Spaza4Locals campaign.
“We have been warning for a long time about the government’s failure to properly regulate the township economy. This has created an environment in which laws are not applied consistently and where accountability is largely lacking.
“The latest information reinforces that concern. It creates the impression that the government does not even have reliable information about who is conducting business and whether they are legally entitled to it.”
According to her, the same rules should apply to everyone.
“Any person doing business in South Africa must comply with the country’s immigration, tax, labor and municipal requirements. When the state fails to consistently apply these laws, it harms legitimate businesses, puts local entrepreneurs on the back foot and undermines confidence in the rule of law.”
‘SA people deserve to be held accountable’
ActionSA says it will not abandon this case until the government gives an account of how many foreign companies do business in South Africa, what the immigration status of their owners is and what is being done to ensure compliance with the law.
“The fact that only 33 business visas were approved this year while tens of thousands of foreign-owned companies are still trading cannot simply be swept under the rug.
“South Africans deserve clear answers, proper accountability and a government that applies its own laws.”
(Photo: GCIS)