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Covid-19 and the national shutdown in South Africa have had a devastating impact on small businesses. As a result, many are making the decision to look elsewhere, rather than starting over in a country mired in deep recession.
Businesses in the hospitality and tourism industry have been particularly hard hit, given the uncertainty of future travel. Many restaurants and bars were forced to close permanently for the past six months, forcing owners to look to the future.
Bloomberg’s Misery Index, which is based on the old concept that low levels of inflation and unemployment show how good the residents of a country are. sensation, ranks South Africa as the third worst country among the major economies.
Nicholas Avramis of the Canadian immigration service, Beaver Immigration, told BusinessTech that he has seen a 50% increase in his business since the beginning of June, and that small business owners in particular are looking at their options to immigrate.
“Companies are starting to leave South Africa,” he said. The business types come from general industries: franchise owners, alcohol-related businesses, restaurant and hospitality businesses, textiles, software companies, and other IT-related businesses.
Avramis said that he has seen a particular increase in inquiries from companies in the hotel industry, especially restaurant owners. He said that many of these business owners have been forced to close and are now wondering whether they should reinvest in a country facing long-term burden reduction and ongoing labor disputes with the CCMA.
The immigration specialist said what really killed the restaurants is that they applied to the Unemployment Insurance Fund (UIF) and the temporary employer / employee (Ters) plan for benefits for their workers, and they didn’t see a penny.
“Many asked, ‘Do I start over with what capital I have left, or do I take that capital and invest in Canada?'”
Avramis said a common story he hears from clients is the difficulty of doing business in the country these days, citing regulations and inconsistencies.
Moving abroad is becoming a serious consideration not only for the wealthy but also for the middle class, said Jean-François Harvey, global managing partner at Harvey Law Group (HLG) Africa.
“In these uncertain times, the people who invest in immigration programs are no longer just the ultra-high net worth people; it has also become a popular choice for middle-class South Africans. “
Popular destinations include New Zealand, Australia, Canada, the UK, the UK and the US Harvey Law Group said residency and citizenship by investment are highly sought after strategies.
A second residence or passport provides a safety net for an exit strategy, wealth preservation, as well as financial protection against the economic slowdown and political uncertainties in third world countries, he said.
Read: Australia is making changes to their visas in October – what South Africans need to know
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