South Africa’s digital nomad visa: Opportunity or threat to local coders?

South Africa is on the cusp of rolling out a new digital nomad visa aimed at attracting remote workers and highly skilled professionals from across the globe. The visa, which will have two categories – a remote working visa and a critical skills visa, positions the country to become only the fifth African nation offering such a programme, marking an exciting development in its efforts to establish itself as a global tech hub.

However, as appealing as the prospect of an influx of digital nomads may seem for the South African economy, concerns are mounting around the potential impact on the local coding community.

“While digital nomads, with their diverse skill sets and global perspectives, undoubtedly bring value to South Africa’s tech landscape, their presence also poses challenges, especially regarding the potential displacement of our local coding talent,” says Mvelo Hlophe, CEO at Zaio, a South African coding education company.

The primary concern lies in the ability of digital nomads, who typically command higher salaries, to drive up living costs in major city centres like Cape Town and Johannesburg. This increase in rent and food prices could force locals to relocate further away, trading convenient living for gruelling commutes just to reach their workplaces.

“This decrease in quality of life, coupled with the lure of lucrative opportunities abroad or even just working remotely for an international company, could deplete our pool of talented coders as local businesses struggle to match the salary packages offered by international rivals,” Hlophe explains.

While the economic benefits of digital nomadism, including revenue generation and job creation across various sectors, are undeniable, proactive measures must be taken to level the playing field and ensure equal opportunities for all.

One proposed approach is the implementation of taxation policies aimed at redistributing wealth, thereby easing the strain on local coding communities priced out of their homes due to inflated living costs. Additionally, local companies will need to adapt their job offerings to compete with attractive international salary packages, potentially through non-financial incentives such as flexible work hours, supportive company cultures, and access to training and mentorship programmes.

Ultimately, the key to harnessing the potential of digital nomadism may lie in collaboration. Encouraging local coders to attend industry events, workshops, and mentorship programmes could foster an environment where knowledge is exchanged, and talent is nurtured collectively rather than viewed as a threat.

As Hlophe aptly states, “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.”

Read next: Grey empowers African freelancers, digital nomads