Despite the volatile conditions in South Africa, there appears to be a trend of skilled South Africans returning to home soil. Both the real estate industry and the tax industry have quoted data indicating that increasing numbers of wealthy South Africans who have been living overseas are in the market to buy or rent property locally, as well as restore their local tax resident status in South Africa. Stats SA confirmed the number of South Africans returning home in 2022 at 27,983.
Who’s heading homewards and where?
It seems to be a mixed bag of ages and stages but with a weighting towards skilled individuals, often with years of experience, who are now returning with families and capital to settle in South Africa.
Historically Gauteng has attracted the lion’s share of returnees, but recently the Western Cape has become more popular with the highest percentage of returnees.
What are the biggest drivers of this ‘reverse emigration’ trend?
Of course there are a variety of factors, but those most commonly cited include:
- Compelling weather
- Proximity to family and friends
- The rising cost of living in the UK, North America and Europe
- Fears about fallout from the ongoing conflicts in Ukraine and the Middle East
- Opportunities and lifestyle in South Africa
- Strict regulations governing daily life elsewhere
- Reaching mandatory retirement age in (say) the Middle East
Draw cards for young families
There are undeniable challenges in South Africa but if you are able to earn well, (or have saved a nest-egg in GBP/USD/EUR), the lifestyle here can still be lekker, and families who have secured a second passport are feeling more comfortable about returning to South Africa to be closer to all that is familiar.
For parents of young families in particular, the appeal is undeniable: kids are able to grow up running barefoot on the lawn while having easy access to a social support structure which includes having grandparents, uncles, aunties and cousins nearby, as well as domestic support for professionals in dual career households.
According to a friend with small children who recently returned from London to Cape Town, as well as the support structure, their key reasons for returning were:
- More space at home
- Their preference for SA weather and culture, and
- The play-focused school environment at pre-primary school level vs. the more academic approach in the UK from a very young age.
A solid middle class is a key driver of economic growth
We have certainly lost a chunk of our middle class to emigration, so it is good news for South Africa that some are returning, and that parents of young families are able to continue their careers here while enjoying a fulfilling life.
And it makes perfect sense: where else on earth can you grab a beer with a friend “just now”, eat a boerie roll fresh off the braai, watch a rugby game with your tjommies and – in Cape Town, at least 😉 – enjoy an African sunset over the ocean?
By Lindsay Frost, CFP® CA(SA)
