Last Updated on August 15, 2024
Employers in Africa are Seeking Expansion and Diversification
Our 2024 EMEA Immigration Trends Report shows that employers in Africa want to diversify the markets where they operate and expand into new regions of the continent.
Employers find African markets appealing for several reasons. The availability of high-skilled talent and influx of foreign investment are main considerations. Those factors, employers say, make Africa an enticing destination for new business opportunities.
Where Companies Operate in Africa
- Southern Africa (South Africa, Botswana, Namibia, Zambia): 74%
- North Africa (Algeria, Egypt, Morocco): 38%
- West Africa (Ghana, Nigeria, Senegal): 34%
- Central Africa (Angola, Democratic Republic of the Congo, Cameroon): 30%
- East Africa (Ethiopia, Kenya, Tanzania): 25%
What Regions Do Employers Want to Expand Into?
Employers are looking to expand into the following African regions:
- North Africa (49%)
- West Africa (44%)
- Southern Africa (42%)
- Central Africa (39%)
- East Africa (36%)
The Availability of High-Skilled Talent in Africa
Nearly half of all survey respondents said their organization found sufficient levels of high-skilled talent in Africa compared to other regions of the world. Others felt high-skilled talent in Africa matched the availability of high-skilled talent globally.
Over a quarter (29%) felt that there was a greater availability of high-skilled talent in Africa compared to other regions of the world.
What Challenges Do Employers Face in Africa?
Respondents were optimistic about access to high-skilled talent. However, they also noted some challenges that impact global mobility strategies across the continent.
Specifically, employers say that their global mobility strategies have been impacted by stricter compliance and fee requirements in Africa. Close to half say that they have experienced some impacts from stricter compliance and fee requirements, while 41% say their global mobility strategies have been significantly impacted by those requirements. About 12% report no impacts.
Political Instability and Security Concerns
While most respondents cite impacts from compliance and fee requirements, they note that political instability and security concerns pose challenges to their business operations in Africa.
Additionally, visa and other immigration restrictions have impacted about 25% of survey respondents. Others feel that they’re challenged by limited access to specialized skills and expertise. Fewer say that they are impacted by regulatory and legal uncertainty, along with a lack of competitive compensation and benefits.
The Impact of Visa Backlogs in Africa
Visa backlogs have plagued employers in Africa. Nearly 45% of respondents have felt the impact of visa backlogs on their business strategies, while 35% say they’ve experienced significant business strategy impacts. Nineteen percent reported no impact from visa backlogs.
Foreign Investment is Increasing the Attractiveness of Africa’s Markets
Employers face some challenges and hurdles in Africa. However, they say that foreign investment plans, namely from China and the European Union (EU), have made African markets more attractive to their organization.
Over half (53%) of respondents said that increased foreign investment plans have heightened their interest in African markets, especially in the realm of talent acquisition and immigration strategies.
Employers Find Africa’s Relaxed Visa Rules and Visa Exception Policies Appealing
Some countries in Africa have relaxed visa rules and visa exception policies, which makes African markets more attractive to employers. Forty-five percent of respondents have increased business travel to Africa due to these changes. Thirty-five percent have either opened new offices or relocated to African countries based on relaxed visa rules.
South Africa: Strategic Policy Frameworks for Recruiting Foreign Talent
Focusing specifically on South Africa, employers say that they use policy frameworks like the Critical Skills List to recruit foreign talent:
Employers Approve of South Africa’s Government Policies
Employers say that in general, South Africa’s new government policies, including the Trusted Employer Scheme, are beneficial to the country’s immigration process.
About half (49%) of respondents say that they feel the Trusted Employer Scheme will make South Africa’s immigration processes faster and more streamlined. Others (34%) say that although they have some reservations, they see the potential benefits of South Africa’s new policies.
Global Mobility Service Provider for Africa
Overall, EMEA employers say that they have a favorable view of African markets and consider those markets to have plenty of talent and potential.
However, our survey found that immigration and global mobility teams require unique support when it comes to navigating EMEA markets. At Envoy Global, we collaborate with local advisors to ensure that your program is updated on the latest immigration and global mobility changes across Africa.
For more insights, download the full 2024 EMEA Immigration Trends Report!
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