Cape Town - Social housing activists in Cape Town have expressed concern over the country’s new digital nomad visa, saying it will further increase rental and property prices and drive many locals – especially the poor – away from jobs and economic opportunities in the CBD.
South Africa may soon see its first batch of remote workers entering the country on the visa, aimed at foreign employees, after the Department of Home Affairs this week published its amendment to the immigration regulations.
The visa will permit foreign nationals who are employed by international companies to work remotely from South Africa for up to three years if they earn more than R1 million a year.
Housing activists said that this will have a negative impact on locals, who have already been forced to the periphery due to exorbitant property costs.
Karabelo Pooe, general manager of the National Association of Social Housing Organisations, said an increase in Airbnb rentals in Cape Town had already pushed ordinary citizens out, coupled with the growing trend of semigration from the rest of the country to the Western Cape.
“All of these factors really do squeeze out ordinary citizens, and add to that the possible influx of foreign or nomad workers.
“This will squeeze out the ordinary citizens and push up rents in the City of Cape Town. The poor and ordinary people will be displaced to the periphery of the city,” said Pooe.
The Western Cape has at least 600 000 people on the housing waiting list, of which 350 000 applicants are from Cape Town.
With property already averaging between R14 000 to R25 000 a month for a one or two-bedroom flat in the CBD and surrounds, this price could double when digital nomads flock in, said Ryan Fester, programme co-ordinator at Development Action Group.
“Number one is that it can increase the price of properties, especially rental properties, because of the competition, and often locals can’t compete with the dollars or euros that digital nomads come with,” said Fester.
Communications officer at Ndifuna Ukwazi, Zacharia Mashele, said that since Covid-19, remote working has become increasingly prevalent.
He said this has created a ripple effect, with the poor now having to compete with foreign currencies while landlords increase rentals.
“As a result, evictions have become a very real threat for many tenants in Cape Town, with numerous locals struggling to keep their homes as they are priced out,” Mashele said.
Ross Levin, licensee for Seeff Atlantic Seaboard and City Bowl, said digital nomad visas are a global trend and should be welcomed for the local economy as it will bring foreign investment into the country.
Manuel Sancho from Olive Properties said the visa had two factors that needed to be considered.
“Will it benefit the ordinary man on the street? Absolutely not. But it is good for the economy,” said Sancho.
Economic growth Mayco member James Vos on Wednesday said he was thrilled by the visa introduction.
“By enabling remote workers to stay longer in our city, we can substantially boost our tourism value proposition, as these visitors will spend more money, benefiting various local businesses and services.”
He added: “Our official Destination Marketing Organisation, Cape Town Tourism, has partnered with homestay platform, Airbnb to highlight the Mother City’s destination value for international remote workers.”
Responding to the housing activists’ statements yesterday, he said: “While I have no control over what the private sector charges, I urge our private sector not to out-price our locals, as we rely heavily on the domestic market to keep our business doors open and people employed.”
zolani.sinxo@inl.co.za