South Africa will launch a new digital nomad visa featuring two categories: a remote working visa and a critical skills visa. These visas aim to attract remote workers and skilled professionals globally as part of South Africa’s efforts to position itself as a global hub.
According to Zaio CEO Mvelo Hlophe, once put into action, this move would establish Mzansi as only the fifth African nation offering this kind of visa to people who spend long periods working in different countries.
Hlophe said that although this may sound promising, the effects of this development on South Africa’s local coding community should also be considered.
Here are three things to be considered before launching the new digital nomad visa.
Considering the broader impact
Hlophe said that South Africa needs to think about the bigger impact of this exciting development.
“Beyond the immediate economic benefits, we must carefully assess how this decision could affect our local coding talent. As a country, we are facing a delicate balancing act where we need to consider both the opportunities and the challenges that this decision could present.”
He highlighted that digital nomads, with their diverse skill sets and global perspectives, undoubtedly bring value to South Africa’s tech landscape and that their presence contributes to the local economy, driving revenue generation through spending on various services and stimulating job creation across sectors such as hospitality, tourism and technology.
“Their entrepreneurial spirit within this community acts as a catalyst for innovation, fostering a vibrant start-up ecosystem that enhances South Africa’s reputation as a tech hub,” said Hlophe.
But there will also be some challenges, especially regarding the potential displacement of the country’s local coding talent as digital nomads earn higher salaries and drive up living expenses in city centres such as Cape Town and Johannesburg.
“This results in higher rents and food costs, pushing locals to move to the outskirts and spend hours in traffic to get to their place of work. Because of this decrease in quality of life, lucrative opportunities abroad or even just working remotely for an international company lure many skilled coders. This leads to a depletion of our pool of talented coders, as local businesses find it hard to match the salary packages offered by international rivals,” he said.
Strategies for retaining local coding talent
Hlophe said that if the country introduces the digital nomad visa, proactive measures must be taken to level the playing field and ensure equal opportunities for all.
“One approach is through taxation policies that aim to redistribute wealth. This will help ease the strain on local coding communities who are being priced out of their homes because of inflated rental and living costs brought on by digital nomads.”
“By implementing fair and transparent tax structures, we can balance the economic benefits of digital nomadism with the need to protect the interests of our citizens,” he said.
The tech expert also said that local companies will also need to step up and adapt their job offerings to vie with attractive international salary packages and offer benefits, such as flexible work hours and a supportive company culture that can foster a sense of belonging that transcends financial incentives which will go a long way in retaining talent.
“South African companies should also look at attracting new talent by providing access to on-the-job training, free online learning and mentorship programmes.”
The importance of collaboration
Ultimately, Hlophe said the key to harnessing the potential of digital nomadism lies in collaboration.
“We should encourage local coders to attend industry events, workshops and mentorship programmes where they can network and exchange knowledge with one another.
“Being able to bounce ideas and learn from each other would mean that coders can work together, rather than feel threatened by one another,” he said.
Hlophe added that the digital nomad visa introduction poses both benefits and drawbacks for South Africa.
“By implementing strategic policies and encouraging a collaborative culture, we can successfully navigate this change and build towards a future where both local and international talent coexist harmoniously.”