People leave New Zealand in record numbers as economy bites

People are leaving New Zealand in record numbers as unemployment rises, interest rates remain high and economic growth is anaemic, government statistics show.
Data released by Statistics New Zealand on Tuesday showed that 131 200 people departed New Zealand in the year ended June 2024, provisionally the highest on record for an annual period. Around a third of these were headed to Australia.
While net migration, the number of those arriving minus those leaving, remains at high levels, economists also expect this to wane as the number of foreign nationals wanting to move to New Zealand falls due to the softer economy.
The data showed of those departing 80 174 were citizens, which was almost double the numbers seen leaving prior to the Covid-19 pandemic.
Merrily Allen is currently planning her move with her partner and 14-year-old daughter in early 2025 to Hobart on the Australian island state of Tasmania
`There is a lot of opportunity over there. They`re always, always looking for people in my profession,” said Allen, who works in dental administration.
`I`ve got a lot of friends that have gone (to Australia) ... purely because of better work opportunities, better living. Australia just seems to have it together.`
During the pandemic, encouraged by the then government`s handling of the outbreak, New Zealanders living overseas returned home in historically high numbers.
But the love affair with the country of 5.3 million, is over for some. Economists say New Zealanders frustrated by the cost of living, high interest rates and fewer job opportunities, are looking to Australia, the UK and elsewhere.
New Zealand’s economy is struggling after the central bank hiked cash rates 521 basis points in its most aggressive tightening since the official cash rate was introduced in 1999. The economy annual growth of 0.2% in the first quarter, unemployment rose to 4.7% in the second quarter and inflation remains high at 3.3%.
Furthermore, Australia has been recruiting and offering relocation packages in areas such as nursing, policing and teaching where they have skill shortages attracting New Zealanders, who do not need visas to work there. At the same time, the New Zealand government has undertaken a significant downsizing of the country’s public service leaving many skilled worked looking for jobs.


Driven by a desire for a luxurious lifestyle

A Congolese national was sentenced to 12 years for corruption and other crimes.
CRIMINAL SYNDICATES
Congolese national Tiny Mtumba (36) was sentenced to 12 years and 3 months imprisonment for fraud, theft, and contravention of the Immigration Act by the Palm Ridge Commercial Court in the East Rand in Gauteng on Thursday. Mtumba`s sentence follows an investigation which revealed his involvement in a criminal syndicate using fraudulent passports to open bank accounts and redeem investments from foreign banks. Gauteng NPA spokesperson Phindile Mjonondwane said the syndicate targeted South African residents and foreign nationals with investments abroad.
`Mtumba was impersonating victims and transferring funds into accounts opened in their names using fake passports. He was found to be in South Africa illegally and arrested after a suspicious transaction of over R1.5 million was flagged by ABSA`s Exchange Control Monitoring and Reporting department.
Further probe revealed discrepancies in his identity and a fake passport,` she said.
DESIRE FOR LUXURIOUS LIFESTYLE
Mjonondwane said State Advocate Rhyme Nchabeleng argued that the accused who was found guilty of fraud and theft totalling R1.5 million was part of a syndicate that targeted foreign bank accounts and abused South Africa`s hospitality as an asylum seeker.
`The accused remained in the country illegally, engaging in criminal activities with disregard for the consequences, driven by a desire for a luxurious lifestyle. Their actions caused significant damage to ABSA and posed a menace to individuals, businesses and the nation`s economic development, warranting a lengthy custodial sentence.
`The court`s sentence reflects the severity of Mtumba`s crimes and serves as a warning to those engaging in similar criminal activities. The investigation highlights the ongoing efforts of law enforcement agencies to combat financial crimes and protect the integrity of South Africa`s banking system,` she said.


Mossel Bay emerges as South Africa’s new semigration hotspot

Western Cape coastal towns, particularly along the Garden Route, are experiencing a dire shortage of affordable housing as semigration-driven demand continues to drive up prices, estate agents say.

According to Lightstone data, the Western Cape is still by far South Africa’s top semigration destination, with 6,406 households from other provinces having bought property in the province in 2023. Gauteng had the second highest influx of residents, albeit almost three times lower at 1,971.

Among the Western Cape towns, Mossel Bay in the Garden Route region experienced the highest influx of residents last year, causing property prices to rise well above pre-pandemic levels.

Although the market has stabilised since the 2021/22 post-pandemic rush, semigration is still a significant driver in the area, says Peter Máre of Lew Geffen Sotheby’s in Mossel Bay.

A family-sized three bedroom home could be bought for around R1.8 million in 2021, and although there are still a few fixer-uppers available for under R2m, today freehold homes of that size are generally priced between R2.5m and R3.8m. Furthermore there is now a wider array of properties in the R5m to R10m price band.

“Although the market peaked in 2022 with a record high of 1,160 property registrations, demand has remained strong and property values have continued to grow,” Máre said.

The Garden Route town has become popular with upcountry buyers because of its proximity to the George airport and the lifestyle on offer, he added. It is also considered to have one of the best-run and most financially stable municipalities in the country.

Although it has become less affordable in recent years, Mossel Bay property is still more accessible than some of the other Garden Route towns.

Plettenberg Bay saw its values rise by around 24% in 2023, according to Steve Neufeld, Manager Principal of Lew Geffen Sotheby’s in that town.

The average property value in Plett has risen from R2.4m to R4.1m in just four years, and it has become difficult to find free standing houses for under R3.5m. Sectional title units start at around R1.5m, but flats and vacant land are in short supply.

“There are a few residential developments in the pipeline, however, the town’s projected growth is beyond the projected increase in supply, and there is already a dire shortage of affordable housing,” Neufeld said.

More upscale properties are entering the market too, with two listings currently advertised at more than R50m.

Knysna property prices have also surged to new records, from an average of R2m in 2021 to R3.51m this year. And it’s not just the Garden Route that’s seeing such tremendous growth as the small coastal towns closer to Cape Town are also seeing record prices.

Hermanus, which is considered another hot semigration destination, saw its median house price hit R2.51m in 2022.

“We first started to see renewed activity at the beginning of 2021 when people were starting to adjust to the new normal and plan ahead, and there has been a steady and notable upswing since then,” says Brett Sparg, Managing Director for Lew Geffen Sotheby’s in Hermanus.

However the town’s geographical and environmental constraints mean the scope for new development and further physical expansion is limited, Sparg added.


If you engage in corruption, we will pursue you until you are locked up’ - Home affairs minister cracks the whip

The Minister of Home Affairs Leon Schreiber warned those who engage in corruption that they would be pursued.
He was speaking following the sentencing of home affairs official Judy Zuma who was jailed to 12 years for passport fraud.
Zuma was sentenced this week in the Durban Commercial Crime Court after pleading guilty to a string of counts including corruption, fraud, and breaching the Immigration Act and the Identification Act.
She was arrested following a sting operation where she tried to bribe a Home Affairs Counter Corruption Investigator with R10,000 and was arrested by the Directorate for Priority Crimes Investigation (known as the Hawks).
“The message sent by this conviction is crystal clear: if you engage in corruption, we will find you and we will pursue you until you are locked up. Under this new administration, we will not rest until we have cleansed the scourge of corruption from the face of Home Affairs,” said Schreiber.
He said this sentence must inaugurate a new culture of zero-tolerance towards corruption.
“The fight against corruption in this department, as demonstrated by the serious nature of the issues raised in this case, is particularly urgent given that Home Affairs sits at the heart of our national security apparatus.”
During 2021, Zuma and the syndicate colluded with South Africans to assist foreign nationals to obtain South African passports by using their identity documents and biometrics.
Zuma charged R4 000 per passport and issued 192, making well over R700 000.
The minister said all the affected passports were red-flagged.
“This means that anyone who tries to use these fraudulent documents at a port of entry will be immediately arrested.
“So far, two foreign nationals have already been locked away, serving time for their involvement in this corrupt scheme.”
He said to improve the security of travel documents, the Department in 2022 introduced a requirement that passports be activated via fingerprints at the office of application.
“This means that passports can only be used after the owner has validated them with their own fingerprints.”
Her co-accused Zima Shange was sentenced to an effective 10 years imprisonment in October 2023.
Minister Schreiber said he was repulsed by the actions of Zuma and other members of such syndicates.
“Who cheapen our documents, threaten our security, and undermine the work done by committed Home Affairs officials.
“May she be haunted by her actions every day that she spends behind bars. Those of us who are committed to turning Home Affairs into a department that delivers dignity will not be deterred by corrupt criminals. Instead, we will put them behind bars where they belong.



PSA condemns mistreatment of employees during investigations at Department of Home Affairs

MEDIA STATEMENT - The content on this page is not written by Polity.org.za, but is supplied by third parties. This content does not constitute news reporting by Polity.org.za.
The Public Servants Association (PSA) has received alarming reports of mistreatment of the Union’s members employed at the Department of Home Affairs during recent raids conducted by the Special Investigating Unit, the Hawks, and the former Minister of Home Affairs.

Employees have reported feeling traumatised, being treated like criminals, and enduring unjust treatment, despite their non-involvement in any wrongdoing. During these operations, employees experienced invasive actions, including the confiscation of cell phones and random searches.

Whilst the PSA firmly supports the combatting of corruption and urges its members to cooperate with lawful investigations, the Union demands that all law-enforcement agencies must conduct their activities within the boundaries of the law, respecting the dignity and rights of all persons.

The PSA has confronted the Department of Home Affairs regarding the troubling behaviour of counter-corruption officials who have been accused of overstepping their authority. Reports of intimidation, threats, and coercion to write statements are deeply concerning. Such actions undermine the principles of justice and fairness.

All employees, like every South African, are entitled to dignity and must be presumed innocent until proven guilty. Many employees subjected to these harsh investigative tactics are often found innocent, with no evidence against them, and only a few have legitimate cases to answer for. The PSA unequivocally supports efforts to eradicate fraud and corruption in the Department of Home Affairs but cannot condone the mistreatment of the Union’s members and other employees. The PSA urges the Department and relevant law-enforcement agencies to ensure that their actions are just, respectful, and in line with the legal rights of employees.

The PSA will continue to advocate for the fair treatment of public-sector employees and will not hesitate to take further action to protect the rights and dignity of the Union’s members
Issued by Public Servants Association