An increasing number of South Africans living abroad are reevaluating whether living abroad is still worth it, with the first signs of returning home slowly emerging.
This is according to Sean Kelly of Parity Wealth Managers, who says the change marks a shift in the way South Africans view migration.
“There are still around 900,000 South Africans living abroad in places like Britain, Australia and the US,” Kelly said.
“But what is changing now is that from that base far more people are starting to reevaluate whether living abroad is still worthwhile from an economic and lifestyle perspective.”
Cost of living drives decisions
Kelly said the traditional model of leaving South Africa for better opportunities is evolving.
“The new model often creates opportunities globally, but remains where life works better economically.”
He said the biggest factor behind the change is purchasing power.
“It is very cheap to live in South Africa compared to some of these more expensive markets.”
Kelly pointed to global price comparisons, saying everyday expenses tend to be higher at the local level.
“You can buy better housing and more space in South Africa… your money is effectively doubled.”
Health care is also a factor.
“South Africa provides high-quality private medical care, and even with medical aid, it is often significantly more affordable than private health care in the UK or US.”
Lifestyle trade-offs abroad
Adjusting to the lifestyle abroad is another important consideration.
One example highlighted the huge difference in home support between Cape Town and Berlin, with families often moving from daily help to only a few hours a week.
Kelly said many South Africans realize these trade-offs only after leaving the country.
“They realized how much of a good experience they had in South Africa.”
Who's coming back?
The tendency to return is not limited to any one group.
Kelly said young professionals, families and retirees are all part of this change.
Young professionals are increasingly able to work remotely.
“30% to 40% of professionals in developed markets now work in some form of remote or hybrid,” he said.
This flexibility allows them to earn globally while staying locally.
For families, the cost of raising children is a major factor.
“Schooling in South Africa is 30% to 40% cheaper than in places like the UK and New Zealand.”
Retirees are also returning to maximize their savings.
“They've built a nest egg in pounds or dollars, and they can enjoy a fairly high standard of living here.”
gradual withdrawal, no flood
Although the numbers still aren't huge, Kelly said the direction is clear.
“It's not a mass comeback yet… but there's definitely a change in direction.”
For many South Africans abroad, this decision is becoming increasingly practical.
“Do I stay in a higher cost environment, or do I move somewhere else where my money works harder for me?”
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For more, listen to Kelly on 702/CapeTalk's Early Breakfast with Africa Melanie using the audio player below: