Why Migration Law Reflects Commercial Law: The Essential Role of People in Cross-Border Trade Beyond Policies

The revitalization of South Africa’s top six land ports—Beitbridge, Lebombo, Oshoek, Kopfontein, Maseru Bridge, and Ficksburg—represents an investment of R12.5 billion, marking the most substantial commitment by the South African government toward managing its borders to date.

This project was announced in April 2026 through a partnership between the public and private sectors, backed by strong commercial reasoning.

These ports account for over 80% of cross-border trade and passenger flow through South Africa’s land boundaries, and their inefficiencies create considerable economic burdens.

The government’s perspective on the situation is especially illuminating.

The Minister of Home Affairs states that research suggests a modest 5% reduction in border clearance time could boost intra-regional exports by about 10%. However, infrastructure upgrades can only partially resolve the broader issues.

The regulations governing who may cross these borders and under what circumstances are also critical in determining the feasibility of trade.

The interplay between migration and trade is not merely a desired outcome; it is a fundamental element of international trade law.

The General Agreement on Trade in Services (GATS) outlines the framework for cross-border service trade through four distinct modes of supply.

Mode 4, focused on the temporary movement of natural persons, allows service providers to cross borders to deliver their services—such as engineers on construction sites, compliance officers working across regions, and specialists advising on foreign transactions.

The AfCFTA Protocol on Trade in Services follows the same structure, encompassing the same four modes across five key liberalization sectors: financial services, transportation, business services, communications, and tourism.

In all these sectors, providing services requires the movement of individuals.

A beneficial trade agreement lays the legal foundation.

Immigration regulations determine whether this foundation can be acted upon.

This issue is not just theoretical; research on business migration in comparable economies illustrates a strong connection with trade and investment. When immigration systems create obstacles for intracorporate transferees, contractual service suppliers, and business visitors, the commercial relationships intended to be supported by Mode 4 are significantly disrupted.

South Africa’s immigration framework acknowledges this reality, even though practical applications may sometimes diverge from stated intentions.

The preamble of the Immigration Act 13 of 2002 states that the Act aims to foster economic growth by enabling the hiring of essential foreign labor, facilitating foreign investment, and granting entry to individuals with exceptional skills or qualifications.

The Critical Skills Work Visa under section 19(4) was specifically designed to fill skills gaps in the domestic labor market that are critical for commercial operations.

In October 2024, the Department of Home Affairs introduced a points-based system for work visa applications, reinforcing that skills-based migration is being viewed as an economic tool rather than merely an administrative function.

Legislative intent is clearly commercial, but challenges arise during implementation.

Two recent court rulings highlight this gap and why businesses that treat immigration compliance as merely administrative expose themselves to risk.

In Mukuru Financial Services (Pty) Ltd and Another v Department of Employment and Labour (2022) 43 ILJ 1171 (WCC), a fintech company providing cross-border money transfer services to unbanked African clients applied for a corporate visa to hire foreign nationals fluent in Zimbabwean and Malawian dialects—languages spoken by its customers.

The Department of Employment and Labour denied the necessary benchmarking certificate.

Mukuru challenged this refusal through a review.

The Western Cape High Court dismissed the application, citing the firm’s failure to provide documented training programs and recruitment evidence showing that no South African citizen or permanent resident could fill those positions.

Crucially, the court ruled that the preamble of the Immigration Act requires that evidence submitted for any corporate visa application must include both justification for hiring foreign nationals and a commitment to training South Africans.

A compelling commercial rationale alone is inadequate without supporting documents.

This was reiterated in another instance through Sitrusrand Boerdery (Pty) Ltd v Minister of Employment and Labour [2025] ZAGPPHC 758.

A citrus farming business required 762 workers for the harvest season, advertised locally, received 15 applications, but found none qualified.

The company then sought a corporate visa recommendation, citing a local skills shortage.

The Department conducted its own recruitment campaign, attracting 1,410 applicants, of which 1,006 were verified and referred back to the firm.

An Adjudication Committee concluded that suitable skills existed within the local market and denied the application.

The High Court upheld this denial as lawful, rational, and procedurally sound.

Despite the farm’s legitimate operational requirements, the court determined its recruitment attempts did not comply with statutory criteria.

Simply placing a single newspaper advertisement does not constitute a thorough search.

The ESSA database indicated nearly 6,000 candidates matched the job profile.

Together, these cases highlight a significant principle: the statutory criteria for a corporate visa recommendation do not just evaluate whether suitable candidates are available; they analyze whether employers have undertaken a diligent search, thoroughly documented their efforts, and addressed local training needs.

Businesses that apply without understanding this distinction will encounter challenges, regardless of their valid requirements.

The practical implications extend beyond compliance issues. An immigration strategy is essential for market entry, workforce planning, and project execution.

A company unable to legally hire the staff it needs faces operational delays, contractual vulnerabilities, and reputational risks.

These are commercial consequences resulting from legal decisions that many businesses mistakenly categorize as HR problems.

Proposed changes to the Immigration Act—including a specialized start-up visa, an investment visa to replace the current business visa, and new pathways for skilled worker visas—indicate that the regulatory landscape is evolving.

Businesses that proactively engage with these changes and treat their immigration applications as legal instruments, rather than mere administrative processes, will be better positioned to seize emerging opportunities.

Trade agreements open markets, but it is the movement of people that ensures these markets function.

The legal frameworks governing border crossings are not detached from commercial law; they are fundamentally intertwined.

*Alude Xuba is an admitted attorney of the High Court of South Africa and the founder and principal attorney at the boutique business and IP law firm Xuba & Associates Attorneys Inc. He has a keen interest in corporate and commercial law, intellectual property law, artificial intelligence, and litigation. The opinions expressed by Alude Xuba do not necessarily reflect those of The Bulrushes.

Disclaimer: This article is not legal advice. For further information, please contact Xuba & Associates Attorneys Inc. at 010 500 1571 / 072 547 4269, hello@xubalaw.co.za

Sources Consulted

Legislation

  1. Immigration Act 13 of 2002 (SAFLII)

Subordinate Legislation / Gazette Notices

  1. Critical Skills List, October 2023 — GN R3934

(https://lawlibrary.org.za/akn/za/act/gn/2024/5448/eng@2024-10-18)

  1. Points-Based System Notice, October 2024 — GN 5448

(https://lawlibrary.org.za/akn/za/act/gn/2024/5448/eng@2024-10-18)

Case Law

  1. Mukuru Financial Services (Pty) Ltd and Another v Department of Employment and Labour (2022) 43 ILJ 1171 (WCC)
  2. Sitrusrand Boerdery (Pty) Ltd v Minister of Employment and Labour and Others [2025] ZAGPPHC 758 (22 July 2025)

International Instruments

  1. General Agreement on Trade in Services (GATS) (WTO) –

(https://www.wto.org/english/tratop_e/serv_e/gatsqa_e.htm)

  1. AfCFTA Protocol on Trade in Services (tralac) –

(https://www.tralac.org/resources/infographic/16187-trade-in-services-in-the-afcfta-factsheet.html)

Government / Official Sources

  1. SA News – R12.5bn border overhaul announcement, April 2026 –

(https://www.sanews.gov.za/south-africa/r125bn-border-overhaul-boost-trade-security-and-traveller-experience)

Legal Commentary

  1. Cliffe Dekker Hofmeyr – Proposed amendments to South Africa’s immigration laws and policies, January 2026
  1. BizCommunity – High Court upholds corporate visa refusal: implications for businesses, August 2025

(https://www.bizcommunity.com/article/high-court-upholds-corporate-visa-refusal-implications-for-businesses-957854a)

  1. Webber Wentzel – Unfairly excluding South Africans from employment opportunities

(https://www.webberwentzel.com/News/Pages/unfairly-excluding-south-africans-from-employment-opportunities-in-favour-of-foreign-nationals-regarded-discrimination.aspx)

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