For international entrepreneurs, the South African Business Visa is the "golden ticket" to accessing one of Africa’s most dynamic markets. However, it comes with a hefty price tag: a mandatory R5 million capital investment.

A common question we see from tech entrepreneurs and startups is: "I don't have R5 million in cash, but my software/intellectual property is valued at R10 million. Does that count?"

It is a dangerous assumption to make. The Department of Home Affairs (DHA) and the Department of Trade, Industry and Competition (DTIC) have a very specific definition of "investment." Getting this wrong will lead to an immediate rejection.

 

1. The "Foreign Direct Investment" (FDI) Rule

 

The core purpose of the Business Visa is to bring new wealth into South Africa. Therefore, the government requires Foreign Direct Investment. This means the value must originate from outside South Africa and be moved into the country.

You generally cannot use money already sitting in a South African bank account (unless you can prove you transferred it there specifically for this business recently) or money borrowed from a South African lender.

 

2. What Counts: Cash is King

 

The safest and most straightforward way to meet the requirement is Cash. You must demonstrate that you have R5 million (ZAR) available in your personal bank account abroad, ready to be transferred to South Africa.

The Proof: You will need three months of certified bank statements.

3. What Counts: Tangible Capital Contribution

 

If you do not have the full amount in cash, you can make up the difference with a "Capital Contribution." However, this is strictly defined. Allowed:

  • New Machinery & Equipment: If you are shipping manufacturing plants, vehicles, or specialized IT hardware from abroad to South Africa, the verified monetary value of these assets counts towards the R5 million.

 

4. What (Usually) Does NOT Count: The "Intangible" Trap

 

This is where most tech entrepreneurs fail. Not Allowed (Generally):

  • Intellectual Property (IP): Valuations of software code, brand equity, or trademarks are rarely accepted as part of the R5 million. The DHA views these as "intangible" and difficult to liquidate or verify.

  • Sweat Equity: Your own time and expertise, no matter how valuable, do not count.

  • Projected Revenue: You cannot use future earnings to prove current capital.

 

5. The "Waiver" Loophole

 

If you cannot meet the R5 million cash/asset requirement, all is not lost. South Africa allows you to apply for a Waiver of the capital requirement if your business is in a "National Interest" sector. These sectors currently include Agro-processing, ICT (Tech), Renewable Energy, and Tourism. If your business falls into these categories, you may not need the full R5 million, provided you can prove the strategic value of your company.

How NAC Travel Certifies Your Investment

 

You cannot simply write a letter stating your assets are worth R5 million. The law requires a Factual Findings Report from a South African Chartered Accountant (CA).

This is where savisa.nac-travel.org is essential. We do not just process paperwork; we connect you with specialized immigration accountants who understand exactly how to structure your balance sheet.

  • Asset Verification: Our partners verify your foreign assets in a format the DHA accepts.

  • Waiver Applications: If you are a tech entrepreneur with high IP but low cash, we draft the professional motivation to the DTIC to waive the R5 million requirement based on the "National Interest" of your technology.

Don't let a valuation error cost you your visa. Let us verify your investment before you apply.