[South Africa] The digital nomad visa and local coders

South Africa is moving closer to rolling out a digital nomad visa. This is a positive for the national economy, however, concerns have been raised about how the move could affect local coders.

Mvelo Hlophe - CEO and founder of coding training company Zaio - shared his perspective on the potential impact with IT-Online.

According to Mr Hlophe, South Africa’s new digital nomad visa will feature two categories: 

• a remote working visa
• a critical skills visa

These visas are intended to attract remote workers and skilled professionals from around the world as part of the country’s efforts to position itself as a global hub.

Once put into action, this move would make South Africa only the fifth African nation to offer this kind of visa to people who spend significant time working in different countries.

The broader impact

As South Africa becomes a remote working destination with the new digital nomad visa, Mr Hlophe highlights the need to consider the big-picture impact.

“Beyond 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,” Mr Hlophe says.

“Digital nomads, with their diverse skill sets and global perspectives, undoubtedly bring value to South Africa’s tech landscape. Their presence contributes to the local economy, driving revenue generation through spending on various services and stimulating job creation across sectors like hospitality, tourism, and technology,” he added.

“So, too, their entrepreneurial spirit within this community acts as a catalyst for innovation, fostering a vibrant startup ecosystem that enhances South Africa’s reputation as a tech hub.

“However, with these advantages also come challenges, especially regarding the potential displacement of our local coding talent. Digital nomads earn higher salaries and drive up living expenses in city centres like 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.”

Strategies for coding talent retention

The Zaio boss offers tips for hanging on to local talent.

“If we introduce the digital nomad visa, proactive measures must be taken to level the playing field and ensure equal opportunities for all,” he said.

“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.

“Local companies will also need to step up and adapt their job offerings to vie with attractive international salary packages. Offering benefits, such as flexible work hours and a supportive company culture that can foster a sense of belonging that transcends financial incentives, will go a long way in retaining talent,” he said.

“South African companies should also look at attracting new talent by providing access to on-the-job training, free online learning and mentorship programmes.”

Collaboration

For Mr Hlophe, a collaborative culture is key.

He said, “Ultimately, 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.

“Indeed, the digital nomad visa introduction poses both benefits and drawbacks for South Africa. While it brings economic opportunities and fosters innovation, it also poses challenges such as gentrification and talent retention for local companies.

“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.”

Source: IT-Online

(Quotes via original reporting)

South Africa is moving closer to rolling out a digital nomad visa. This is a positive for the national economy, however, concerns have been raised about how the move could affect local coders.

Mvelo Hlophe - CEO and founder of coding training company Zaio - shared his perspective on the potential impact with IT-Online.

According to Mr Hlophe, South Africa’s new digital nomad visa will feature two categories: 

• a remote working visa
• a critical skills visa

These visas are intended to attract remote workers and skilled professionals from around the world as part of the country’s efforts to position itself as a global hub.

Once put into action, this move would make South Africa only the fifth African nation to offer this kind of visa to people who spend significant time working in different countries.

The broader impact

As South Africa becomes a remote working destination with the new digital nomad visa, Mr Hlophe highlights the need to consider the big-picture impact.

“Beyond 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,” Mr Hlophe says.

“Digital nomads, with their diverse skill sets and global perspectives, undoubtedly bring value to South Africa’s tech landscape. Their presence contributes to the local economy, driving revenue generation through spending on various services and stimulating job creation across sectors like hospitality, tourism, and technology,” he added.

“So, too, their entrepreneurial spirit within this community acts as a catalyst for innovation, fostering a vibrant startup ecosystem that enhances South Africa’s reputation as a tech hub.

“However, with these advantages also come challenges, especially regarding the potential displacement of our local coding talent. Digital nomads earn higher salaries and drive up living expenses in city centres like 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.”

Strategies for coding talent retention

The Zaio boss offers tips for hanging on to local talent.

“If we introduce the digital nomad visa, proactive measures must be taken to level the playing field and ensure equal opportunities for all,” he said.

“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.

“Local companies will also need to step up and adapt their job offerings to vie with attractive international salary packages. Offering benefits, such as flexible work hours and a supportive company culture that can foster a sense of belonging that transcends financial incentives, will go a long way in retaining talent,” he said.

“South African companies should also look at attracting new talent by providing access to on-the-job training, free online learning and mentorship programmes.”

Collaboration

For Mr Hlophe, a collaborative culture is key.

He said, “Ultimately, 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.

“Indeed, the digital nomad visa introduction poses both benefits and drawbacks for South Africa. While it brings economic opportunities and fosters innovation, it also poses challenges such as gentrification and talent retention for local companies.

“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.”

Source: IT-Online

(Quotes via original reporting)