South Africa is currently witnessing an unprecedented trend: a significant number of expatriates are choosing to return, driven by challenging conditions in the developed world. The increasing cost of living in Britain and Europe, coupled with geopolitical tensions such as the wars in Ukraine and the Middle East, has prompted many South African professionals abroad to reevaluate their living situations.
Richan Schwellnus, a tax attorney with Tax Consulting South Africa, has observed a notable shift. He mentions,
a significant uptick in inquiries from South Africans regarding the tax implications of returning home.
Similarly, real estate agents report a marked increase in sales to expatriates, indicating a willingness to reconcile with the drawbacks of South Africa they once sought to escape.
Historical Context of White Flight
The phenomenon of white flight is not new to South Africa. The term historically refers to the migration of the country’s minority white population, which saw a significant uptick following the 1994 all-race vote that brought Nelson Mandela’s African National Congress (ANC) to power. This exodus has seen fluctuations, influenced by the nation’s socio-political and economic climate. In recent years, the migration trend has expanded to include black professionals, driven by concerns over safety, government corruption, economic mismanagement, and policies on land restitution and black empowerment. Despite worsening data on crime, employment, economic growth, and the addition of regular power outages, the desire to return has grown.
The Changing Perspectives
David Burger, an agent with Lew Geffen Sotheby’s International Realty in Cape Town, sheds light on the changing attitudes of South Africans living abroad. He states,
South Africans living in the UK and Europe are becoming more miserable every day with wars on their doorstep, uncontrolled immigration, and the increasing cost of living.
This sentiment is echoed by Rory O’Hagan of Chas Everitt property group, who notes the influx of South Africans returning to invest in the economic hub of Johannesburg, bringing with them savings, skills, and international experience.
Political Climate and Returnee Decisions
The upcoming general election poses the possibility of the ANC losing its overall majority, potentially leading to a coalition government. Despite the political uncertainty, returnees are not waiting to see the outcomes, opting to move back and invest in the country’s future.
James Davey, a recent returnee, shares his personal story of leaving Britain due to the cost of living crisis, adverse weather, and perceived restrictions on free speech.
I could not face another day on the British hamster wheel
he confesses. After weighing the costs and benefits of living in various countries, South Africa emerged as the top choice for him and his family, offering a lifestyle and business opportunities that were unparalleled.
Davey’s experience highlights the appeal of South Africa for returnees, especially those with the financial means to afford private security and other services. This trend underscores a growing sentiment among expatriates that, despite its challenges, South Africa offers a quality of life that is increasingly hard to find elsewhere.
Financial Considerations of Returning Expats
To provide a clearer picture of the financial aspects considered by returnees like James Davey, here’s a simplified table summarizing the key considerations:
Factor | UK (Previous Residence) | South Africa (Current Residence) |
---|---|---|
Cost of Living | High | Moderate |
Quality of Life | Restricted | High |
Outdoor Lifestyle Opportunities | Limited | Abundant |
Business Opportunities | Constrained | Vast |
Safety and Security Services | Public | Private (Affordable with savings) |
Energy Solutions | Grid-dependent | Off-the-grid options available |
This table reflects the comparative analysis many South Africans abroad are conducting, leading to the decision to return to their homeland for its lifestyle and entrepreneurial opportunities, despite the ongoing challenges.