Finance and Economic Opportunities

In 2021 and 2022, the Western Cape Government submitted detailed proposals to the Minister of Home Affairs urging the adoption of a remote work VISA. The matter has also been raised via the Department of Tourism at various platforms. Furthermore, I have raised the need to introduce a remote working VISA in direct communication with the Minister of Finance as one of the leads in Operation Vulindlela on this matter.

The continued lobbying and advocacy work on formal platforms and through the formal written submissions as mentioned continues in partnership with numerous tourism sector bodies such as TBCSA and SATSA amongst others.

With the widespread adoption of new digital technologies together with the ongoing informalisation of work practices (which is giving rise to the growing “gig” economy), many workers are now able to work remotely for extended periods. The challenge that they face is that most tourist VISAs do not allow travellers to earn an income while travelling. These VISAs are typically also capped at between 30 and 90 days' stay length and are difficult to extend. To overcome this challenge, many destinations are introducing remote work VISAs which allow “digital nomads” who are employed in other countries, the ability to stay for an extended period. In this manner, these destinations are enticing foreigners to come and contribute to their economies while pursuing their work remotely. By offering a remote work VISA, South Africa will be able to compete with destinations that already offer this type of VISA. With suitable digital infrastructure, the Western Cape is ideally placed to capitalise on this trend.

Introducing such a dedicated remote-working VISA programme can attract a significant number of long-term, financially independent travellers to South Africa, not only during this period of economic uncertainty but also in the long term. In addition to attracting remote workers, it is anticipated that such a VISA would have the knock-on effect of encouraging remote workers to invite their family and friends to visit – with data showing that the main purpose for visiting South Africa among international travellers is to visit friends and relatives. It is important to note that because digital nomads already have a job somewhere else in the world, they do not compete with the local labour market. It is therefore a ‘win-win’ for the South African economy.

The Department will soon commission research to better quantify the potential financial and non-financial impacts that could be realised in the Western Cape through this type of VISA.