VFS bags another exclusive contract in SA

VFS GLOBAL has signed
another exclusivity
contract, this time with
the Portuguese consulates
in Johannesburg and Durban.
This comes at a time when
the Competition Commission
is in the process of
investigating VFS Global over
alleged market dominance
abuse, following complaints
from other visa companies.
Effective July 28,
residents of Johannesburg
and surrounding areas
now need to apply for a
Portuguese visa through
VFS at its premises in
Sandton. Travellers from
KZN must apply through VFS
in Musgrave, Durban, from
August 1.
Appointments must
be made online at
www.vfsglobal.com/
portugalsouthafrica from July
28, or in person if the page
is not operational.
For Cape Town travellers,
the visa application process
remains unchanged, as VFS
only signed an agreement
with the consulates in
Johannesburg and Durban.
Jaco Badenhorst, md of
Visa Request, says the
exclusivity contract between
the Portuguese Consulate
and VFS will see his
company lose yet another
percentage of market share.
He believes the contract with
VFS will see visa fees for
Portugal double and service
levels decrease. “Neither
the contact number, website
nor email address in the VFS
notification for Portugal work
yet. VFS knows very well that
if travellers don’t get hold of
them in some way and pay
them, they will not be able to
travel to Portugal,” he says.
According to Jaco, there are
now more than 16 foreign
missions in South Africa that
have outsourced the visa
application process. None of
the contracts were awarded
to South African companies.
“Even though we believe
regulation is important, we
will continue to campaign for
competition in this industry.
We strongly believe the
applicant who is paying for
this service should be able
to choose the best service
provider for the best price.”
But VFS Global says it
has not created a monopoly
in South Africa. Tarran A
ShharmaIt, spokesperson
for VFS Global, told TNW:
“It is important to note that
there are other companies
handling visa processing
work in South Africa and
we are convinced that we
are not in a monopolistic
situation.”
Tarran says the number of
outsourced service providers
appointed by a particular
government is based purely
on its own requirements and
policies, and VFS Global has
no influence over this. “It is
our belief – purely our own
belief – that missions and
governments opt for single
or two or three outsourced
service providers to ensure a
high level of service for visa
applicants and to ensure
a high level of security and
overall control.