Remote working is about much more than just being able to work from home; it is even bigger than being able to work in a different area or province to where your employer is based – just ask South African Meg Wilson who is currently living and working in Panama.
Although the international public relations specialist is not technically regarded as a digital nomad, due to her having residency in the central American country, she is nonetheless a remote worker who is reaping the benefits of being able to work from anywhere.
This trend is becoming such a growing global movement that the City of Cape Town has been pushing the South African government to introduce a digital nomad visa that will allow international workers to base themselves in this country, work for their companies back home, and contribute to the economy.
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FNB Property Economist John Loos also believes that such a visa would be of great benefit to the country and the economies in the areas foreign workers choose to settle. In fact, he equates it to the positives that come from European swallows or retirees investing in property here.
“Such people bring with them amazing purchasing power, whether they are drawing a pension or working for a company in, for example, Germany. They are not taking people’s jobs, just working from South Africa.
“Effectively, they will be working in Germany but spending their money here. It just makes sense.”
This foreign market of retirees and workers offers “great potential” for economic activity as many parts of South Africa are cheap for people to live in, considering the strength of their home currencies.
“While I do believe that there are more negatives than positives to a weak Rand, one of the positives is that we become cheap for tourists, retirees, and remote workers who want to live here because of the great lifestyle and weather on offer.”
Citing the Eagles song The Last Resort, Loos says there are a number of reasons why people would see South Africa as some sort of paradise. At the same time though, he cites the last verse of the song – ‘They call it paradise, I don't know why; You call some place paradise, kiss it goodbye’ – as the only major downside to attracting more people to the economy, which is the scarcity of resources.
“This, however, is a challenge in any economy.”
In November, James Vos, the City of Cape Town’s mayoral committee member for economic growth, said the City was the “perfect destination” for foreign remote workers.
“Increasing numbers of professionals are seeking out employers that let them work from anywhere, and with beaches, bars and mountains all on one’s doorstep in the Mother City, it is the perfect place for digital nomads who blend work and play into their travels.”
He said he was still pushing the South African government to institute a remote worker visa as four other African countries and 40 global countries have done.
“Research indicates that digital nomads tend to stay in one destination longer than three months while spending up to R50 000. One report of a remote worker incentive programme in a city in Oklahoma in the US shows that these travellers generated nearly $20 million in additional local gross domestic product. With a special visa, South Africa stands to realise such gains.”
Last month, however, he said the date for implementation of the remote workers’ visa was missing from President Cyril Ramaphosa’s State of the National Address.
“I first proposed the remote worker model after the lifting of lockdown when Covid-19 almost wiped out the travel and hospitality sectors. Since then, we have been lobbying for the introduction of a remote working visa because of its massive economic spinoffs for the industry. Our research shows that a special visa would help attract more international visitors, particularly ‘digital nomads’ who can work virtually from anywhere in the world.”
Citing the latest Tourism Sentiment Index, Vos says global sentiment for tourist activities in South Africa had increased, with the country now ranked 16th in the world. This Index “proves that there is a thirst for South African travel”.
“If, however, our visa system is not revised and improved, we stand to lose out to destinations with less arduous administrative platforms.”
To make this visa a reality, he explains that the Government “would simply” need to make an amendment to Section 11 of the Immigration Act which relates to an extension of visas beyond 90 days for specific activities. He suggested that the Act also included the following requirements:
- An applicant must provide evidence of employment abroad, as well as a sufficient income from such employment or own business registered abroad
- Prohibit the applicant’s work activities in South Africa
- Allow the applicant’s dependants to accompany them on application
“If South Africa were to implement such strategies, we could indeed create a tourism-related job in every home in the country...”
Similarly, Loos says, if South Africans can work remotely overseas, this could potentially be good as it could reduce the number of people emigrating, and taking their skills and purchasing power with them.
If the Government does not make movements like international remote working difficult for its people by putting up financial hurdles, it will allow them to still be paid by companies here and taxed here.
“Exchange controls prevent money from going out of the country, but they also discourage money from coming in; if you restrict it going out, you restrict it coming in as more people are then likely to cut financial ties completely with South Africa...
“If Government and companies do not accommodate remote working, and keep skills and money tied to South Africa while workers live elsewhere, people will rather just cut all ties.”
Wilson, who currently has clients in the US, Europe, and Africa, including South Africa, says a lot of thinking and research went into her decision to move overseas, and that she settled on Panama because of its proximity to her daughter in the US, and because of its central and strategic location in the world and excellent air links. Other reasons include its sound economy, the fact that the country is one of the world's greenest/ cleanest countries, and because it offers outstanding healthcare, pension benefits, and “a raft” of discounts to older residents.
It also has mountain areas with cooler temperatures, does not experience any major natural disasters, and has a culture and language she loves.
“I love to travel and have been working mostly remotely, in and out of South Africa, for the past 30 years, but the extreme difficulty of travelling out of SA during 2020 and 2021 due to the world's mistaken view of the country as a source of several Covid variants really reinforced for me the need to have at least one more 'home base' in the world where I had permanent residence as a minimum.”
She has been living in Boquete, in the western highlands of Panama, since January 2022, and plans to be there for at least another year, interspersed with travel to other places, including South Africa. She is also still a tax-paying citizen of South Africa.
“I will then probably go to a few other places on digital nomad visas or longer tourism visas and experience life there for a few months or a year at a time...I'm also really fortunate to have clients who are used to me working remotely and have really embraced and encouraged my current plan.”
While Wilson already had some international clients prior to her move to Panama, her current work split is 60% South African clients and 40% international clients.
“One cannot sell any goods or services inside Panama without a work permit, but I have just received mine, so hope to have one or two clients here soon.”
In terms of her contribution to her current home’s tourism economy – and further example of the possible benefits of introducing a digital nomad visa in South Africa, she has visited at least one ‘tourist’ destination a month since living in Panama, and sometimes more.
“I also 'buy local' as much as possible and especially to support the small businesses and charities that were hit very hard by Covid.”
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