The Buccaneers chief was in attendance at the club's unveiling of new signing Sifiso Myeni and Thandani Ntshumayelo in Johannesburg on transfer deadline day, and the 63-year-old believes the quality of football in the PSL already surpasses some of the European leagues.
"I'm happy that fewer of our players are going overseas because it means that the Premiership gets to keep its best players," Khoza told the media.
"Of course, it's always good when a player goes and tests himself abroad because they get exposed to new training.
"Our football is getting stronger now and ever developing.
"We are stronger and better than some of the European leagues."
The likes of Kaizer Chiefs midfielder Siphiwe Tshabalala and Mamelodi Sundowns striker Katlego Mphela have both failed in attempts to sign for overseas clubs recently, while Bongani Khumalo's move to Tottenham was quickly followed by a loan deal with Reading, who are now uninterested in retaining the player's services.
Khoza, though, feels the PSL can take a page from Brazil's top flight league, where the top players have developed a tendency to remain in the country, producing a much more tightly contested division.
He added: "Look at what is happening in Brazil where it will be difficult to get players from there.
"There are less transfers (abroad), meaning the Brazilian championships will get stronger and stronger."