Entrepreneurial support organisation Endeavor South Africa says the South African remote work, or digital nomad, visa can help the local technology industry and entrepreneurs, and is a positive step towards positioning the country as a global hub for remote work, innovation and skills transfer.

The visa, which came into effect on May 20 this year, will also contribute towards the economy, tourism and cultural exchange.

The remote visa allows foreign nationals earning more than R1-million a year from foreign employers to legally work remotely from South Africa for up to three years. This move is expected to attract high-earning professionals and entrepreneurs to the country, thereby driving local economic growth and development.

“South Africa has good Internet access, and offers a very high quality of life and a relatively low cost of living. Simplifying and expediting the granting of these visas will facilitate movement and break down barriers and should open doors to an additional flow of both talent and capital, which often go hand in hand, into South Africa,” says Endeavor South Africa capital markets lead Antonia Bothner.

Digital nomads invest their time and money in the local economy without taking local jobs, and build relationships with local knowledge workers, and help workers and local communities.

Digital nomads may play a key role in fostering entrepreneurship and the creation of technology clusters. Further, foreign entrepreneurs congregating in a shared space for even a few months can spur new connections and new enterprises, she says.

From an economic perspective, remote nomad visas bring in foreign income, stimulate local spending, and attract skilled professionals who can contribute to the country's workforce and innovation ecosystem.

This influx of diverse talent leads to knowledge exchange, cross-cultural collaboration, and the creation of new opportunities for both local residents and expatriates.

Bothner expects the new visa regulations to result in injecting energy, fresh perspectives, and more importantly the message that the country is open for business.

“We are moving to a more open-sourced way of thinking. This is vital for the country. Not only will this yield benefits to the economy overall, but with skills transfer being a big component, it is essentially an investment in our productive capacity now and for the future,” she says.

Remote visas have been transformative in several countries. Portugal offers two-year renewable work visas with proof of employment. Many other countries offer similar visas, usually requiring proof of income and employment, including Brazil, Greece, Indonesia, Italy, Mauritius, Seychelles, Spain, Thailand and the United Arab Emirates.

There are expected to be one-billion digital nomads working across the world by 2035.

“One just needs to look globally to see how beneficial these visas are, because young talent, which is mobile, digital and forward-thinking, is infusing fresh perspectives, energy and talent in the countries where they are working.

“This is a huge opportunity for South Africa to benefit from a growing global trend that is delivering real benefits for the economies, tourism industries and entrepreneurial ecosystems of the countries that have adopted these types of visas,” Bothner says.