Namibia is the latest of four African countries to offer digital nomad visas to remote workers. Mauritius, Cape Verde and the Seychelles also all have visa programmes targeting digital nomads, yet South Africa still lags behind.

A digital nomad visa allows someone to live in a country that is not their homeland while working remotely for a company based outside the one they live in. Governments that issue digital nomad visas never refer to them as such, choosing to call them residence permits or devising a special name for them. The permit generally expires after 12 months and the option to renew varies from country to country.

“Normally someone who qualifies for this visa is a high-income earner. They will stay in a hotel or rent a big house and spend their money in the local economy,” said Richard Firth, chairman and CEO of software engineering firm MIP Holdings.

Travel restrictions due to the Covid-19 pandemic dealt a big economic blow to countries reliant on tourism 

Several factors have helped drive demand for digital nomads. In particular, travel restrictions due to the Covid-19 pandemic dealt a big economic blow to countries reliant on tourism. After the pandemic, however, travel volumes did not rebound as expected. Digital nomad visas are seen by some governments as a means of reigniting travel inflows.

“It’s a form of a longevity tourism play aimed at high-earning, high-intellectual property individuals. But instead of having the tourist for the usual two or three weeks, these visas last a year or two depending on the country you’re in,” said Firth.

Covid also led to a sharp rise in the number of remote workers, with many businesses more open to the idea of remote work than they were before the pandemic. Employees or contractors that don’t need to be bound to an office can broaden their horizons beyond working from home in the traditional sense, opting to “make the world their office” instead. “We have 550 people now [working for MIP] and all of them work from home. Covid was the catalyst for that,” said Firth.

In the post-Covid era, tourism has contributed between 3% and 4% to South Africa’s GDP each year, a sharp decline from the 6.4% contribution made by the sector in 2019.

Digital nomad visas

Considering the country’s attractiveness as a tourist destination, having a digital nomad visa programme could attract a higher number of visitors for longer stays. President Cyril Ramaphosa acknowledged this in his February 2022 state of the nation address when he promised “a comprehensive review of the work visa system and new visa categories that could enable economic growth, such as a start-up visa and a remote working visa”. Implementation, however, has been sorely lacking.

The Democratic Alliance-led Western Cape government has been agitating for some time for national government to introduce a digital nomad visa in South Africa. The provincial government, citing home affairs minister Aaron Motsoaledi, said in July that the programme had been delayed because existing legislation doesn’t allow for its implementation.

But progress in making the necessary changes to the Immigration Act has also been glacial.

“To be fair, we [South Africans] are slow off the mark in just about everything. If you are quick, you get it, but if you are slow, then by the time you get there, someone has eaten that lunch already. The fact is that we are the prime country to supply this type of visa programme and we do want tourists to come here,” said Firth.

He said an estimated 40% of the 120 000-strong software developer workforce in South Africa work remotely for foreign companies. As such, the availability of digital nomad visas in neighbouring countries could threaten an exodus of skills.

“Say you have a person living in South Africa earning in dollars or pounds and converting that to rands. They might decide to take advantage of a nomad visa and choose to live somewhere else. South Africa is already losing because this person is externalising their intellectual property and income, but we would still collect the tax revenue. If that digital nomad visa stretches out for more than 183 days, we will lose the tax revenue from that individual,” said Firth.

In the longer term, South African employees who can work from home may see digital nomad visas offered by other countries in the region as an attractive option. Deteriorating living standards, lack of service delivery, an unreliable electricity supply and increased concerns about safety and security could make digital nomad visas more attractive.

“Safety and security is a big issue. Not many South Africans qualify for an international passport but this is giving many the opportunity to leave. And although they’ll keep working for South African companies, they’ll be socialising in and contributing to a different environment,” said Firth. “Because they are socialising in different circles, their next job may not be from a South African firm, and the country would lose them completely.”

However, South Africans looking to pursue the nomadic lifestyle should pay close attention to the rules and benefits provided by the visa they apply for in a foreign country. Minimum income level stipulations are usually a key requirement for these visa programmes. So, too, is having health insurance or medical aid from a supplier local to the country of choice. Of particular concern, though, are the tax implications for those working outside of South Africa.

For the employers there is a dilemma: the presence of employees in a foreign state can create a tax presence for the employer

“Some countries see virtual workers as [positive contributors] but only on condition that taxes are paid locally… Not all countries are open to these modern, cross-border employer/employee relationships and advice should be sought before residing for too long in a territory,” said Lino De Ponte, director of employer services and immigration law at Deloitte African Tax & Legal.

In general, a South African looking to live abroad, regardless of where their employer resides, must first check if South Africa has a double taxation agreement with the country they want to live in. If an agreement exists, then that legislation will apply. If not, then the individual is by default a South African tax resident and the following rule applies: if the individual resides in a foreign country for more than 183 days of a given 12 month period, 60 of which must be continuous, then the first R1.25-million of their income will not be taxed in South Africa. This rule and its application does get tricky, and seeking expert advice before relocating is advisable not only for individuals but for employers, too.

“For the employers there is a dilemma: the presence of employees in a foreign state can create a tax presence for the employer; whether the staff member is taxable in their personal capacity or not is often irrelevant,” said De Ponte

Interpol are in contact with their 195 member countries as they try to help gardaí to identify an elderly man who has been charged with allegedly using passports in the names of two babies born in the 1950’s who died just months after their birth.

Det Garda Padraig Hanley, of the Garda National Bureau of Criminal Investigation, told Cork District Court that investigations are still ongoing in multiple jurisdictions as they attempt to identify the man who has been in custody since last month.

The man, who speaks with an American accent, was arrested in Cork passport office last month when he was making an application. Gardaí previously indicated that the man has not given them any assistance as they attempt to find out his true identity.

Dt Garda Hanley said the fingerprints of the man are still being circulated by Interpol.

“We have received some responses not from everybody. Investigations are still ongoing with Interpol and internationally. I know for a fact that investigations are still ongoing with the US.”

Det Garda Morris said that the UK’s National Crime Agency and authorities in Canada have returned negative identity responses. They are still awaiting responses from countries such as New Zealand and Australia.

He could not say as yet how many countries have returned negative findings. However, he knows “for a fact” that “no one has said yes” with regard to the identity of the man.

Domestically, Det Garda Hanley said that a number of addresses in Ireland may or may not be linked with the man. Gardaí have also been in touch with the RSA, the Residential Tenancies Board, the ESB and the VHI. A team has been set up to carry out enquiries.

Inspector Pat Lyons applied for a further adjournment of the case as investigations are ongoing. Frank Buttimer, solicitor for the man, said that there will have to be a cut off date as to when a decision is made by the DPP in relation to the case.

Judge Olann Kelleher said that the DPP “can’t make a decision when they don’t know who they man is.”

Judge Kelleher remanded the man in custody until October 24th next when he will appear by video link from prison. The man, who has white hair and a beard, appeared by video link in court today.

Meanwhile, the man was arrested on September 15th at the passport office in South Mall in Cork. He was charged in the name of Philip Frank Morris of no fixed address, with a date of birth in the 1950’s.

He was charged with two offences relating to allegedly providing false or misleading information in order to obtain a passport

Det Garda Hanley last month told the court that the man allegedly used the name of a baby, Philip Frank Morris, who was born in December 1952 but subsequently died to apply for a passport in Cork.

Det Garda Hanley said that when questioned the man said he was residing in Ireland and needed a passport to leave the country. Dt Sgt Hanley said the man did not co-operate with officers in any way following his arrest.

He said the man held an Irish passport for three decades but only recently obtained a PPS number.

He told Judge Kelleher that they had spoken to the brother of the late Philip Morris who died at the age of four months in 1953.

Last Tuesday at Cork District Court the man was charged with an additional offence. Det Garda Hanley said that the man made no reply when he was charged with providing information or documents on September 11th last at the passport office in South Mall which were false or misleading.

The court heard that the man allegedly had a passport in the name of Geoffrey Warbrook. However, Det Garda Hanley said gardaí have spoken to relatives of Mr Warbrook who confirmed that he died as a young baby in the early 1950’s.

“Both of those two people (Philip Morris and Geoffrey Warbook) died. We have interviewed siblings of both of those people who died in 1952 and 1953. They died within months of their birth.

We are satisfied that he is not Philip Morris or Geoffrey Warbrook (the two names on passports allegedly seized from the man).

There are two passports, one of which has been renewed. Numerous international enquiries regarding fingerprints and photos have been made.

Most South African university students want to leave the country because of crime, corruption, lack of job opportunities, failing infrastructure, and the rising cost of living.

This was revealed in the annual 2022/23 Professional Provident Society (PPS) Student Confidence Index.

The survey involved 2,400 undergraduates and postgraduates studying towards a profession-specific degree at public and private universities.

The students studied valuable skills, including engineering, medicine, law, accounting, business management, and psychology.

The survey found that 90% of the university students desired to work and live abroad to gain experience.

What was particularly worrying is that the percentage of students, particularly younger black students, who want to leave jumped from 39% to 90% in two years.

It shows that the country faces a mass exodus of skills as young, qualified South Africans have an overwhelming desire to live and work abroad.

Apart from the better job prospects, they feel that working overseas enhances their chances of providing a better-quality future for their families.

There were also many problems, which the students cited as push factors for not wanting to live in the country.

78% of the participants rated crime and corruption as the topmost worrying factors about living in South Africa.

65% cited unemployment, 66% the failing infrastructure, and 52% the cost of living, poverty, and the economy.

Motshabi Nomvethe, PPS’s head of technical marketing, said there is a silver lining to students planning to leave the country.

She said many students indicated they would be willing to return to South Africa after gaining the necessary experience.

“The students want to come back when the South African economy has improved and can absorb them,” she said.

Skilled South Africans flooding overseas

The concerning findings in the 2022/23 PPS Student Confidence Index come on the back of reports of skilled South Africans flooding out of the country.

Wits professor William Gumede warned that South Africa’s skills exodus had become a crisis with professionals of all races, ages, and parts of the country leaving.

He highlighted that South Africa needs people with skills, ideas, and energy to turn the country around and increase economic growth.

“When you strip a country of these key people, it seriously undermines it from an economic growth perspective,” he said.

Former Home Affairs DG Mavuso Msimang said the critical skills shortage in the country is one of the most significant blockages to economic growth.

He added that it was “really worrying” that the government was dragging its feet to address the issue.

The South African Institution of Civil Engineering (SAICE) said the critical shortage of skills is one of the key drivers behind the country’s collapsing infrastructure.

SAICE said the country had lost a shocking number of engineers in the civil sector over the last 20 years.

The South African medical fraternity also suffers from an exodus of nurses and doctors, resulting in understaffed public hospitals.

Profmed CEO Craig Comrie said the substantial exit of medical professionals over the last three to five years created tremendous skills shortages.

A Department of Home Affairs official found guilty of fraud has been sentenced to an effective 10 years behind bars.

Nhlanhla Mathebula, 39, was convicted of corruption and contravention of the Immigration Act in the Nelspruit Commercial Crimes Court this week. The National Prosecuting Authority (NPA) said the accused was convicted on 12 counts of corruption in Contravention of Section 4(1)(a) of the Prevention and Combating of Corrupt Activities Act 12 of 2004 and 13 counts of Contravention of Section 49(14) of the Immigration Act 13 of 2002.

NPA spokesperson Monica Nyuswa said Mathebula was a Department of Home Affairs employee stationed at White River, Mpumalanga.

“During May 2021, the accused would illegally process passport applications for illegal immigrants.

“Along the process, he would swap the picture of the South African citizen with that of a foreign national.

“These applications would usually be processed late at night and sometimes in the early hours of the day.”

Mathebula would even go to the office to process the applications, even when he was on leave.

“He would be paid an amount ranging from R1,000 to R5,000 per application.”

The NPA said Mathebula was caught after one of his “clients” confused him with his Home Affairs colleagues when they wanted to be assisted with a fake passport.

“The matter was reported to the Hawks, and investigations ensued, leading to the accused`s arrest.”

During the trial, senior State advocate Themba Mavundza told the court that these kinds of crimes affected the reputation of the country, therefore, the court must impose a sentence that will deter offenders.

Mathebula was sentenced to 10 years of direct imprisonment, and the court ordered that the amount of money the accused received as gratification during the commission of the offence be recovered from the accused’s pension funds and transferred to the Criminal Assets Recovery Account.

“The court also made an order that the passports the accused issued be forfeited to the State,” concluded Mathebula.