Andrew Stegmann
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UK Home Office Changes Will Make it Easier for South Africans to Emigrate to the UK

The UK’s Home Office has published more details about its future skills-based immigration system.

Earlier this month, the department said that a new immigration and borders system will be implemented in a phased approach from 2021.

“Proposals include scrapping the annual cap on the number of visas issued for skilled workers and widening the skills threshold to include people with qualifications equivalent of A levels,” the Home Office said.

“The new skills-based system will also remove the resident labour market test for high-skilled workers and introduce a route for temporary workers at any skills from low-risk countries, allowing them to come to the UK for a maximum of 12 months.”

According to JP Breytenbach, director of Breytenbachs Immigration Consultants, the new skills-based immigration system is definitely good news for South Africans looking to live and work in the UK.

“The new immigration system will mark the end of free movement for European workers to the United Kingdom. It will not favour any specific nationality. Europeans will have to compete with all other nationalities if they want to apply for UK jobs and visas,” he said.

Breytenbach said that the end of free movement will also mean that there will be more job opportunities available.

This, coupled with a simpler skills-based immigration system will allow South Africans to take up more job opportunities in the UK, he said.

“It will definitely be easier for South Africans with sought after skills and talent to apply to live and work in the UK.

“Furthermore, there will no longer be a cap on the number of workers that can come in a specific period. This will make it easier for UK employers in specific sectors to hire the number of workers they need.”

Still desirable

Despite recent Brexit troubles, Breytenbach said that the UK labour market remains a desirable location for South Africans.

“London is reckoned to be the financial capital of the world, and many global businesses have their headquarters in the city,”he said .

“This obviously means many attractive job opportunities for skilled and highly skilled persons in London, and the country as a whole.

“It is also easy for South Africans to adapt to the UK workplace and culture. Language is no barrier. The short flight distance also makes it an attractive destination for South African businesses looking to expand to the UK and EU markets.”

No typical applicant

Despite a recent uptick in the number of South Africans looking to emigrate, Breytenbach said that there a really is no ‘typical’ South African applicant.

“There are numerous young persons who are applying for UK student visas. Many of them then later switch to other immigration categories, upon finishing their studies,” he said.

“We also have skilled and highly skilled persons who apply for visas and permits from all age groups, and a number of business persons looking for visas in order to expand their businesses to the UK.”

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

What You Can Expect From South Africa’s Updated Identity System

The South African government is currently working on an updated national identification system with the ultimate goal of building a ‘future-fit’ Home Affairs.

Speaking at an ID4Africa conference earlier this month, International Relations and Cooperation Minister Naledi Pandor said that the system will provide a single source of information about all clients, using both biographic and biometric technologies.

“The new national identity system South Africa seeks to build will serve as a master source for civics and immigration management,” she said.

“The modernisation of South Africa’s Home Affairs, when fully and successfully implemented, will re-engineer and automate most of the key processes of the department and yield a significantly enhanced national identification system, and a credible national population register.”

Some of the key elements of the system include:

  • Records of persons throughout their lifespan;
  • Birth, marriage and death records of residents (citizens, permanent residents, asylum seekers and refugees);
  • All persons entering the country will have their biometrics captured during the visa application process or at the point of entry;
  • Processing and storing of asylum seekers and refugees’ applications;
  • Records of visitors who enter and leave the country;
  • Records of illegal persons in the country.

Pandor also promised that the new system will be more customer-centric and will be a secure environment.

“With the advent of the fourth industrial revolution, the ultimate goal is to utilize technology in bringing government services closer to the people, where they live,” she said.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: [1], [2].

Andrew Stegmann

How Much South Africans Are Paying for Rent Right Now, in Each Province

PayProp has published its rental index for 2019, showing a quarterly year-on-year (YOY) rental growth rate of 3.7%.

According to the property group, the final quarter of 2018 brought the first uptick in the national rental growth rate in two years with a YOY growth rate of 4.1%.

PayProp’s head of data and analytics, Johette Smuts, said that the slightly lower growth rate this quarter is still a good indicator of market recovery.

“The election has been a source of uncertainty and volatility which has affected the property market and its growth,” said Smuts.

“Reluctant buyers who are holding off purchasing a property ultimately need to live somewhere, and we’ll likely see an increasing demand for rental property which will push up prices and lead to further rental market recovery in 2019.”

Average rent

PayProp’s data shows that the average national rent moved up into the R7,500 – R10,000 price brand for the first time in Q4 2018.

Nevertheless, almost a third of rents processed by PayProp still fell into the R5,000 – R7,500 category.

The Western Cape still weighs in as the most expensive province in which to rent, with an average rental of R9,030.

Approximately 30% of rents in the Western Cape fall into the R5,000 – R7,500 category, with a further 30% priced above R10,000 including over 11% priced above R15,000 – the highest percentage in this band.

Out of all the provinces, North West has the biggest percentage of renters in any one bracket – 54.6% of tenants in the region rent for between R2,500 and R5,000. It also has the country’s lowest average rent, at R5,031, and the smallest percentage of rentals over R15,000.

Gauteng: R8,000

Almost 40% of Gauteng rentals are priced between R5,000 – R7,500, and yet the average rental is R8,000, the second-highest of all the provinces in Q1 2019.

Over 20% of rentals in the province are priced higher than R10,000.

Western Cape: R9,030

The Western Cape, which recorded an average rent of R9,030, remains the most expensive province to rent in. However, most rentals are between R5,000 – R7,500, with 30% falling in this category.

Nearly a third (30%) of rentals in the province however, are priced over R10,000, and over 11% is priced above R15,000 – the highest percentage in this band nationally.

KZN: R7,975

KwaZulu-Natal is the third most expensive province to rent in, but while the average rental falls within the R7,500 – R10,000 bracket at R7,975, only 18% of rentals in the province are in this bracket.

KZN has the second biggest percentage of rentals priced over R15,000.

Eastern Cape: R5,694

Although the average rent in the Eastern Cape is R5,694, 34% of rents in the province fall within the R2,500 – R5,000 category.

Over 62% are between R2,500 – R7,500. The Eastern Cape has the highest percentage of rentals below R2,500 out of all the provinces.

Free State: R6,054

At R6,054, the average rent in the Free State falls within the R5,000 – R7,500 category, and yet a third of all rentals in the province fall within in the bracket below.

Over two-thirds of rental properties are rented for R2,500 – R7,500.

Limpopo: R7,117

Out of all the provinces, Limpopo’s distribution across the various price bands is the most symmetrical.

Because of this and the high percentage of rentals in the R5,000 – R7,500 bracket, it’s no surprise that the average rent in the province (R7,117) falls within this band as well.

Mpumalanga: R7,298

More than a third of Mpumalanga’s rentals fall within in the R5,000 – R7,500 bracket, which is also where the average rental in the province (R7,298) falls.

Mpumalanga’s price band distribution is skewed towards more expensive rentals, with over 36% of rentals priced over R7,500.

North West: R5,031

Out of all the provinces, North West has the biggest percentage of renters in any one bracket – 54.6% of tenants in the region rent for between R2,500 – R5,000.

It also has the country’s lowest average rent (R5,031) and the smallest percentage of rentals over R15,000.

Northern Cape: R7,817

The Northern Cape has a fairly even price band distribution across the middle ranges, and only 26% of the province’s rentals fall within the R5,000 – R7,500 band, the most populous national category.

Almost 20% of rentals fall within the brackets on either side, putting almost two-thirds of all Northern Cape rentals in the R2,500 – R10,000 range. Only 10% of rentals are less than R2,500 per month.

Rental prices vs average salaries

Jobs website Adzuna has released updated data on the cost of living in South Africa’s biggest cities earlier this year.

The data is based on a comparison of more than 140,000 job listings and rental costs from some of South Africa’s biggest property websites.

“When Adzuna analysed its data and compared it to the average rental price across South Africa’s nine provinces and major city centres, their findings were indicative that the average household spends between 26% and 30% of their monthly income on accommodation,” said Adzuna country manager Jesse green.

When compared with the average monthly salaries and average rental prices, these are South Africa’s most affordable cities to rent in:

  • Polokwane – 12% of monthly income spent on rent;
  • Port Elizabeth – 15% of monthly income spent on rent;
  • East London – 15% of monthly income spent on rent;
  • Johannesburg – 16% of monthly income spent on rent;
  • Pretoria – 17% of monthly income spent on rent.

Those living and working in Cape Town still sacrifice the biggest chunks of their monthly earnings to pay their rent. Capetonians spend an average of 27% on their rent each month.

Adzuna found that the Western Cape and KwaZulu Natal came in as the most expensive provinces to rent in. In comparison, the North West, Free State and the Northern Cape were the most affordable provinces for working renters to settle down in.

“When you look at the Adzuna report findings, it’s clear to see that even though some people earn a lot more working in SA’s main cities, they have less to show at the end of the day due to the high cost of living they have to deal with,” said Green.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Zoë Reeve [1], [2].

Andrew Stegmann

South Africa is on The Cusp of Its Own Booming Cannabis Industry

Eastern Cape premier Oscar Mabuyane wants to make the province home to South Africa’s first cannabis industry – already reading proposals from interested international parties, and working on feasibility studies to register farms.

Speaking to the City Press, Mabuyane said that people had been growing cannabis in the province for years, but now the opportunity exists to formalise it, and turn it into a lucrative industry.

He said that the stigma attached to cannabis is that of smoking and getting high, but in markets in Europe and Canada, there is a large industry built around the plant, which includes medicines, bio-fuels and other products.

“It’s a huge business. We are looking at this cannabis industry as an industry that can definitely turn around [the economy] and it talks directly to our people where they are,” he said.

The premier said that he is working through the legal channels to formalise such an industry, and added that those who had already been growing the plants illegally should “be embraced” and helped to register as legitimate farmers.

In May, the City of Cape Town announced that it will release vacant land for the production of medical cannabis, with the city hoping to get its foot in the door of what’s considered an ‘untapped sector’ in South Africa.

The set-up of the facility will bring with it an investment of R638 million in capital expenditure during the construction of phase one, the city said. Additionally, a further R1.5 billion will be invested during phase two which is expected to commence in 2023.

An indoor cannabis farm.

Regulatory hurdles

To accomplish the goal of building a formal dagga industry, South Africa still needs to overcome a few regulatory hurdles.

The country has already made some headway into decriminalising the plant, with a Constitutional Court ruling from September 2018 stating that it is not a criminal offence for an adult citizen to use, possess or grow cannabis in private for personal consumption.

However, the rules are still unclear. The court gave parliament 24 months from the date of the judgment to bring the ruling in line with South African laws, with a new bill expected to be released soon.

Legislation around cultivation remains unclear.

The government recently de-scheduled some types of cannabis health products, with conditions, making them easier to get hold of.

Cannabis products considered to be health supplements are those containing a daily dose of less than 20mg cannabidiol (CBD), as well as those containing less than 0.001% of THC, or less than 0.0075% CBD.

These products may be bought and sold relatively freely as a result of the exemption published in the Government Gazette on 23 May 2019.

This development has fuelled the false impression among many South Africans that the cannabis market is suddenly opening up to any and all products, said said Julie Oppenheim, a partner at law firm Bowmans.

“However, even this exemption carries limitations,” she said. “It applies only for 12 months and is intended to create an opportunity for the fledgling cannabis industry to engage on a legal framework going forward.

“In the meantime, does this mean that large amounts of cannabis can be freely cultivated in order to manufacture these products? Probably not.

“Remember that the provisions on dealing under the criminal law remain applicable, unless you have a cultivation licence from SAHPRA.”

Until some of the many grey areas in the regulation of cannabis have been clarified, Oppenheim outlined the basic legal position on cannabis in South Africa as follows:

  • You may use it for your personal recreational or medicinal use, alone or with friends and family over the age of 18, in spaces not open to groups other than your own.
  • Grow only as much as necessary for your personal use; where unsure, rather be conservative.
  • Other than in the case of specific health supplements and processed hemp fibre detailed above, buying and selling cannabis or any cannabis-containing product is currently not legally permissible.

 

For information as to how Relocation Africa can help you with your Mobility, Immigration, Research, Remuneration, and Expat Tax needs, email marketing@relocationafrica.com, or call us on +27 21 763 4240.

Sources: [1], [2]. Image sources: Get Budding [1], [2].