WHILE governments seek to create and protect jobs for their citizens, as well as secure international borders, they are under constant pressure to produce economic growth. In order to grow, industry scarce skills often have to be imported from foreign countries.
The challenge facing policymakers is how to employ South Africans, while keeping the economy on the cutting edge.
During my years of service at the Ford Motor Company I have come to feel at home as an expatriate in several host countries around the world, including Taiwan, Japan and South Africa. As a result, and over the years, I have become well acquainted with the different processes involved with industrial immigration.
For the past five years my family and I have lived in South Africa – an experience we have learned a great deal from and enjoyed very much.
The experience was enhanced because we felt the gates were open and the warmth and hospitality of South Africa and its people eased our transition.
Disheartening
Although it has become second nature to my family and I, for many first-time expats, the procedures can be quite disheartening, and as a result many countries ultimately lose out on valuable international experience and expertise because of it.
In May 2014, South Africa’s Department of Home Affairs announced the launch of new, stricter immigration regulations to tighten the inflow of foreigners into South Africa. These stricter laws have ultimately caused a steady stream of international specialists – who bring skills, technology and development to South African companies – to slow to almost a trickle.
Increasing globalisation means corporations are not only competing within the same borders but with every other company in the rest of the world.
One of the best ways to create a more enabling environment for business growth, investment and global competitiveness is to improve the ability of advanced skills brought into the country.
The government states that its goal is to improve security, while fostering economic development. Controlling the inflow of undesirable and harmful elements into the country is vital, but the method may come at a major cost to the economy.
In South Africa, infrastructural development has been identified as a national priority to grow the economy, create jobs and work towards alleviating poverty.
In response, the local automotive industry is aligning to global trends – city planners are driving the development of smart cities, smart vehicles and smart roads.
The objective is far less congestion, far fewer accidents and the introduction of autonomous (self-driving) cars, buses and trucks.
To make this work, global expertise has to be aligned; and plans between countries (especially a continent as diverse as Africa) must converge.
To ensure that all economies, developed and developing, move as one with an integrated global strategy, we need to ensure that experts and technicians are able to move freely between markets to spread their valuable knowledge. The challenge with the new immigration laws is that they make it much more difficult for expatriates looking to contribute.
Where labour can easily be sourced locally, it makes sense to protect jobs and develop indigenous talent. However, when the productivity of a particular organisation can be dramatically improved by introducing someone from outside, we need to make it easier to bring these people in, not harder.
At the very least, special provisions need to be considered and debated in cases where people with rare skills in critical industries are looking to enter the country.
Granted, it would make little sense to merely bring in an external expert for a limited time, working in isolation at a high fee. Skills transfers from expats to locals needs to be central to such exchanges and continuous interaction between two countries should be a priority.
At Ford, in order to stay on the cutting edge, we often bring in highly skilled expats, who have advanced knowledge, experience and wide exposure to international business conditions. Often we “double-up” for certain positions to ensure these expats work closely with the local candidate who has demonstrated potential for advancement into senior management.
It goes beyond skills development – it’s about promoting local, previously disadvantaged people into leadership positions.
However highly skilled, smart and experienced an expat may be, he or she will never fully understand the unique cultural makeup of South Africa. In order to reach more customers, the company needs local people who have an intimate understanding of the market we serve.
Competitive
For the economy and company to become truly competitive we need to work hand-in-hand with the government, both here in South Africa and in our various markets, to come to a mutually beneficial outcome. In particular, the impact of strict immigration policy on businesses should be fully interrogated and alternatives need to be considered.
Legislators across government departments need to come together to develop a holistic policy framework to address the core issues, which are economic development and security.
Occasionally objectives may seem to be in competition, however the goal is the same for all parties.
One ministry may wish to increase foreign direct investment, another may want to implement restrictive labour regulations and another onerous ownership rules. These departments need to sit down and find a way to reach a common ground.
For instance, if South Africa is to become a true launching pad for multinationals into the rest of Africa, we need to be able to easily employ people from countries in East, West and Central Africa, if we wish to partner with these markets.
Innovative strategies need to be devised to ensure that people offering valuable skills feel they are welcome contributors to the advancement of their host countries.
We need to be open for business rather than closing the gates.
Regional free trade agreements are gaining momentum on the continent, but these need to be supported by measured de-regulation in areas that would benefit economic development.
Jeff Nemeth is the chief executive of Ford Motor Company of Southern Africa.