SA is facing a skills shortage that, if left unchecked, could hold back any prospects of an economic recovery, says James Formby, the boss of Rand Merchant Bank, one of the major players in the country’s investment banking industry.
"SA is losing people in their thirties and forties who are qualified and experienced," said Formby. "Yet it is extremely difficult to bring new people into the country, so there is a risk that the skills base is eroding, and we see this as one of the long-term threats to the country," he said.
Anecdotal evidence
Research from both the UN and Stats SA estimates that 21,000- 23,000 South Africans leave the country annually.
Based on a variety of anecdotal evidence, according to Formby, many of these people appear to be highly skilled.
Understanding what is really going on is being hampered by the dearth of accurate and publicly available information, insofar as it relates to both immigration and emigration.
Formby highlighted the importance of trying to stem the outflow of technical skills in the engineering and construction industry, crucial under President Cyril Ramaphosa’s plan to launch infrastructure-led economic recovery.
"Having experienced people is as important as having the capital available to implement these projects," he said.
"But anecdotally, we are seeing these technical skills being attracted away to other markets. The real trick in pulling off
our infrastructure-led growth strategy is accessing and enabling the right specialist skills," he said.
In 2019, the SA Institution of Civil Engineering reported that in the past three years it had lost 1.73% of its members aged from 30-60 years to emigration.
Health care
The prospect of National Health Insurance (NHI) being fully implemented is causing concern among health-care professionals. According to a survey conducted by the SA Medical Association, 38% of respon-dents in both the public and private sectors would consider emigrating if the NHI was
fully implemented.
Formby’s remarks echo similar ones made by FirstRand COO Mary Vilakazi last year. She said the "brain drain" had been gradual but noticeable.
Both have called on the government to make it easier to allow skilled workers to be employed in SA.
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