Minister of Small Business Development in South Africa, Stella Tembisa Ndabeni-Abrahams, says only foreign nationals who comply with South Africa’s immigration and business laws should be allowed to operate businesses in the country.
Speaking during a recent parliamentary session on Section 15 of the Immigration Act, Ndabeni- Abrahams said the law clearly defines the requirements for non-South Africans who want to trade in South Africa, including the R5 million investment condition.
“Section 15 of the Immigration Act is very clear on who can trade, who is a non-South African,” she said.
“The determination between the Department of Home Affairs and the DTIC is that non-South Africans can only trade in South Africa if they invest a minimum of R5 million,” she said.
Foreign nationals seeking to start or invest in businesses in South Africa face strict immigration requirements, including a mandatory minimum investment of R5 million under the Immigration Act.
According to Section 15(4) of the Immigration Act 13 of 2002, foreign nationals applying for a business visa are required to invest at least R5 million into a South African business venture.
The regulation, administered by the Department of Home Affairs, also requires applicants to submit compliance documents proving that their businesses align with South African laws and regulations.
The policy forms part of government efforts to regulate foreign-owned businesses while encouraging investment that contributes meaningfully to the economy.
Foreign business owners are expected to provide proof of investment, business registration documents, tax compliance records, and other supporting paperwork before a visa can be approved. In some cases, applicants must also demonstrate how their businesses will create jobs for South African citizens or permanent residents.
Ndabeni- Abrahams emphasised that compliance applies to all traders and that proper documentation is essential for both residency and business operations.
Debate over township economies and enforcement
The requirements have sparked ongoing debate among entrepreneurs, particularly in township economies where many foreign nationals operate spaza shops, salons, restaurants, and other informal businesses.
Citizens and political activists argue that stricter enforcement is necessary to prevent illegal business activity, ensure compliance, and protect local markets from unfair competition.
Immigration and business experts note that compliance checks have become important as authorities intensify inspections of undocumented businesses and foreign nationals allegedly operating without valid permits.
The Department of Home Affairs has repeatedly stated that “all foreign nationals conducting business in South Africa must comply with immigration and business regulations, including holding valid visas and permits”.
The issue remains highly sensitive amid broader national debates around economic inclusion, unemployment, and the role of foreign-owned businesses in both formal and informal sectors.
“If the president says everybody has to be compliant, it means if you are a non-South African, there’s documentation that gives you the right to be here and documentation that gives you the right to trade,” Ndabeni- Abrahams said.
Abrahams added that government enforcement would address concerns around undocumented trading and non-compliance in the sector.
“Those people who have the right to trade will be the people who will trade,” she said.
