Thousands of foreign nationals are choosing South Africa as their retirement destination, with many leaving first-world countries like the United Kingdom, China, Germany, and the United States of America. The Home Affairs department reported that South Africa received around 3,645 retirement visa applications over the past two years from 112 countries. 1,645 of these visas have been approved, while 1,449 are still pending, with 499 applications rejected. Reasons for rejections include incomplete documents and applicants not being able to prove their net worth or retirement incomes that meet South Africa's minimum amount of R37,000 per month.
The top five retiree feeder countries are the UK, China, Germany, the USA, and Bangladesh, accounting for 1,824 out of the total 3,645 visa applications. Other European countries, such as Switzerland, the Netherlands, and Sweden, also received applications. South Africa's challenges, such as load shedding, high crime rates, and poor governance, make it an attractive retirement destination for foreigners, particularly in the Western Cape. One main reason for these immigrants choosing South Africa is its euros and dollars, which offer a better lifestyle and cheaper living costs. The warm climate and picturesque landscapes and beaches also attract retirees.
Economist Dawie Roodt believes that foreign retirees are choosing South Africa as a good sign for the economy, as they are long-term tourists, leading to increased capital inflow and supporting the rand exchange rate. South Africa should encourage more of these types of visas and improve the current turnaround for retirement visas.
