Property agents and the Lowveld Chamber of Business and Tourism say wealthy Mozambicans have been buying residential property over the past two years so that they have bases when they visit Nelspruit to shop at weekends.

But because recently imposed visa restrictions are making it more difficult for Mozambicans to enter SA , the trend may be reversed; many will lose interest in buying properties if they are denied the opportunity to make use of them.

Until recently Nelspruit was considered a high-growth area, with the retail and hospitality sectors showing steady increases in revenue.

The town, the first major business centre travellers encounter on the N4 highway from Mozambique into SA, has suffered considerable losses in business and tourism revenue due to the visa requirements implemented in accordance with the Immigration Act in April.

Barbara Mommen, business manager of the chamber , said Mozambicans were spending between R70m and R90m a month in Nelspruit before the visa regulations were imposed.

The number of Mozambican shoppers visiting the town has declined considerably since.

Before April, Mozambicans could get visas to visit SA within 48 hours. Now they need to apply at the SA High Commission in Maputo 10 days in advance .

Visa applicants also have to prove that they have R2000 each to spend in SA. Eric Todd, the co-owner of Kellaprince Property Group, says 65% of townhouse units in Riverside Estate next to Riverside Mall have been bought by Mozambicans.

Todd said the Mozambicans were using the units as bases when they visited to shop. Some also had children enrolled at boarding schools in Nelspruit and the units made it easy for them to visit their children.

He said Mozambicans were also buying properties in other developments in Nelspruit.

However, the visa restrictions are likely to put a damper on Mozambicans' enthusiasm about buying property, he says. "It will be more difficult for them to use their properties here," says Todd.

In addition, the Mozambican government has imposed limits on the amount of South African goods citizens may take back across the border.

Pam Golding Properties Nelspruit franchisee Dirk van Rooyen says the restrictions will have a domino effect on commercial enterprises, as well as the residential property market and building industry.

Mozambicans had bought about 20% of the townhouses at the Hillside Manor complex in Nelspruit, he says .

Henri Pieters , the chamber's president, says red tape is making Mozambicans reluctant to visit Nelspruit.

The visa restrictions are also affecting Nelspruit's hotel industry and medical profession. Mozambicans, who now have to show proof of accommodation and sometimes a letter of invitation to obtain visas, will book doctor's appointments and hotel rooms to get visas.

Once they have their visas they cancel the appointments and reservations.