Executives & Business Leaders are leaving South Africa - A Deeper Look

The wealthy are leaving South Africa at record numbers.

This report looks into what's driving them and how they do it.

You may have already seen it pass by. South Africa is going through a change and while it seems that by 2022, we're expecting a stark increase in the amount of millionaires, not all of them are staying.


Instead, what we're seeing is that a record number of the wealthy are leaving the country and many more, not just the wealthy, would join them if they were given the opportunity.


The numbers are baffling.

  • 43% of healthcare professionals would leave if financial pressure would increase
  • 86% of executives would leave if only they had the opportunity
  • a private school reported that 30% of students leaving was because of emigration in one private school.

South Africa is losing its leaders

"They would, if they could"

From personal stories to large sweeping statistics. There’s no shortage in things pointing to people wanting to leave South Africa.


The story is consistent: If people could, they would.


Of course, many people don’t want to leave the country they love behind, but sometimes things simply don’t add up. At some point an opportunity abroad is simply too good to leave be.


But in a country where financial and personal security are not always a given, and in a place where there’s a lot of uncertainty about the future, opportunity can take many forms. Here, opportunity could simply be a better future for your children.


And that’s probably why the distribution of the people leaving looks more like this:

The numbers in the graph above show us the percentage of people that sell their house for the purpose of emigrating abroad for each part of the population.


It’s clear that in South Africa, the urge to move away is similar across the board.


This also becomes apparent looking at the graph to the right which shows that 15% of the people emigrating are general managers.


That means that the reason for people leaving must be felt by everyone alike.

It's always a good idea to know where you stand. Do this quick interactive test and find out if you would be able to get a second passport the same way the wealthy are getting them.


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And, looking at the reasons people give for leaving, that does indeed seem to be the case. Of course any reason is driven by socio-economic and political problems, which do in fact affect many people, regardless of their status.


Nearly everyone cites the at least one of the following reasons for wanting to leave South Africa:

We're "looking for a safer environment"

Our children "deserve a better future"

I see a "higher earnings potential abroad"

It's hard to get ahead with "affirmative action policies"

We feel less secure and "social services are becoming worse"

Our "quality of life and comfort is reducing"

As soon as you get to the bottom of each reason, you realize that each is socio-economic and well outside of what most people can manage to change in their lives.


Economic uncertainty and social instability lie at the heart of each reason and the fact that skilled workers are being hired in droves abroad, doesn’t help the country’s prospects at all.

Do The Test: How easy would it be for you to move abroad?


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When we say that the wealthy are leaving at an increasing pace, we weren’t kidding. In fact, the numbers listed in Frank Knight’s 2018 wealth report show that in the last 5 years, 23% of South Africa’s most wealthy have left the country.


That’s a staggering amount and certainly not something to scoff at.


So, what’s driving this for the wealthy? Well, for the wealthy, there are two drivers and at first glance they are the same as everyone else’s.

How does this affect South Africa's wealthy?

If you've spent years building what you have today, you're going to want to protect it to the best of your ability.


Unfortunately, not everything is under your control and in a political environment that is as turbulent as South Africa's, you never know.


The same goes for you family. Security is everything and being able to protect the ones you love is key.

There's are a lot of business opportunities in South Africa, but anyone that can get access to the European or the US markets, has lot to gain. Just being able to tap into these large economies is enough to make a move.


Couple that with the ability to have your family benefit from better social security, and be able to send your children to better schools can be even more important, depending on who you ask.

Protect what they already have

Maximize their potential for the future

One could argue that wealthy people in South Africa have to deal with a lot less compared to others. And this is true to some extent. For example, whatever schools lack in South Africa can easily be solved by sending children to private schools. While more expensive, there are solutions for a lot of issues.


But, however you look at it, there are also reasons for more concern for people who’ve built something substantial over time. In an uncertain political climate, they stand to lose a lot more than the average worker.


But that alone doesn’t explain why wealthy people are leaving South Africa.


Part of the reason is also simply the fact that once you have a certain amount of capital available, you just have more options.


While everyone else needs to wait for the opportunity to emigrate and leave South Africa, those with available capital don’t really need to wait to do so. You see, while countries are always cautious when it comes to letting people in, that’s largely because of the potential risk of people having to fall back on government support.


Of course, when someone that can prove they have enough capital available to sustain themselves or at the very least provide value to the country, things change.

How does it work? Do you just walk into an embassy and show them your bank account?


Unfortunately, while the guy behind the counter may be impressed, that’s about all that would accomplish.


But as soon as you understand that it’s mainly about the value you can bring to the table, you can see why it’s possible. It all comes down to investing in the country.


That’s right. While there are some ways to “buy” a passport without any returns, these are not very common. In any case, it’s always nice to have your new passport AND expect an ROI to boot.


The way it works is simple enough. There are 2 ways in fact.


The first way is to buy into a government program. Here, you just have to buy into a fund provided by the state and in return you’re eligible for a passport. It’s fast, simple, but of course, there’s no return on investment and there’s only so many options you have with this.


The second way is far more interesting and can give you a whole lot more options, AND an ROI.


Here, together with an agent, they scope out deals which they can buy into. These deals are specifically selected (or often, even designed) for the purpose of providing the investor with benefits like a second passport.


The deals are often real estate projects, but don’t have to be. Most are limited since they only need so much investment, but an agent should be able to tell you what’s going on where and how that matches your wishes.


You see, while there’s a lot of consistency for the reasons that people are leaving South Africa, what they want out of it is vastly different. And it the agent's job to make sure that you get the right opportunities in front of you.

So, how do they do it?

The way this works is also why it’s so appealing for many people.


Every deal has its own benefits, so it’s perfectly possible to find an opportunity that fit’s an investor’s requirements like a glove.


Here are just a handful of things an investor may get out of a deal.


The perks can be substantial

World-class schooling for their children

Deals can come with a lot of perks, some include the use of European schools.

Unrestricted Schengen travel

Many deals are specifically designed to be able to travel in Schengen countries.

A stable political environment

Often, a major benefit is being able to relocate to a more stable environment.

With public service as a perk world-class health care is often a given.

Some of the best public health services

Some deals aren't just for yourself, but also for your loved ones.

Hereditary privileges

Simply being able to travel freely among many countries is one of the best perks.

Visa free travel to many countries

Probably the best perk of all: Safety for you and your family

Safety for family and themselves

More business opportunities

More business opportunities available combined with more flexibility.

That’s pretty hard to beat, and if you’re one of those who can invest the typical minimum amount, there’s not much keeping you from making a move like this.


The added benefits of being able to do business in Europe for example, without needing a visa or other limitations, are just icing on the cake for most investors.


Many do it just for travel alone but being able to give your family benefits you never had in the first place is about as rewarding as it gets for years of hard work.


So now, the question is: Is this available to just anyone?


Well, it’s not something that’s widely known so that right there is a barrier of entry, but there are some actual requirements to being able to do something like this.


What’s available to you will depend on your specific situation and there are some limiting factors that everyone has to deal with. But once you’re past that, the only limiting factor will be how much you can invest.


More capital means more choice and often, benefits that kick in faster.

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