South Africa Opens Its Doors to Retirees

Uh-Oh... my secret’s getting out.

Regular readers will know that I live in Cape Town and have been a dual US-South African citizen for decades. They'll also know that I love this place dearly, and plan to enjoy my retirement here.

When visitors describe my home city, they tend to use terms like “incomparable,” “extraordinary,” “stunning,” and so on. Cape Town is often called the world's most beautiful city. It was voted the number one tourist destination in the United Kingdom last year. South Africa itself is no slouch, either. I've never met anyone who's been here who didn't remark on its extraordinary natural beauty.

So why don't more foreign retirees settle here? There are several reasons.

One is its distance from major population centers. Another is the false perception that Africa lacks first-world amenities. And of course, the country's government hasn't done itself any favors, frankly squandering the post-apartheid promise through corruption and inefficiency, especially on immigration matters.

But all that's starting to change... and local immigration agencies are leading the way.

I recently spoke to Candice Magen, founder and director of a local outfit called Abroadscope. She explained that after our country's recent elections, which saw the formation of a coalition government, many barriers to immigration—particularly for retirees—were falling away.

“The new Minister of Home Affairs is well aware of the potential benefits of becoming a premier retirement destination,” she told me. That's why one of his first priorities was to simplify South Africa's retirement visa program, and clear away the backlog of applications for it and other residencies. Just as important, the new government is committed to rolling out the welcome mat for foreign retirees. Under the previous government, there was subtle resistance to immigration in the Home Affairs bureaucracy.

Candice knows there's a hill to climb. “We've looked at other countries where Europeans and North Americans tend to retire abroad, and we are more than competitive with them. We should be one of the top retirement destinations in the world. The only thing that stands in the way is lack of knowledge about the opportunity.”

Abroadscope is busy doing something about that. Her company has five goals over the next year:

Facilitate at least 100 retirement visas for foreign retirees.

Build a network of companies providing preferential services to foreign retirees, in sectors like real estate, healthcare, and lifestyle services.

Drive a shift in the global narrative about South Africa, positioning it as a top contender for retirement.

Help rejuvenate South Africa's relocation industry, which has been hampered by unsuitable visa regulations.

Leverage foreign retiree relocation to create much-needed jobs in tourism, health care, real estate, and lifestyle services.

Some of this effort will take place in the background. But Abroadscope is forging ahead with the most important element: showcasing South Africa's potential to foreign retirees.

One initiative is the creation of a “Golden Pages” program, a directory of service providers offering discounts and preferential treatment for foreign retirees. This reflects an understanding of the attractiveness of similar programs in Latin America, such as Panama’s pensionado visa.

The second prong is to develop and host “strategic retirement tours.” These 10-day guided tours will showcase South Africa's lifestyle, property auctions, health care services, and leisure activities to potential retirees. I've seen the itinerary, and I can guarantee that it will impress.

Candice and I agree about South Africa's “secret weapon” in the global retirement space: the combination of low cost of living and outstanding amenities.

For example, a meal in a Michelin-starred restaurant costs about 70% less here than it would in most U.S. cities. Groceries range between 30 and 80% less expensive. Essential utilities are about half that in the US.

But it's the price of real estate that really shines. Whether renting or buying, real estate in South Africa is between 65 and 80% cheaper than in comparable locations in the US.

And you wouldn't be sacrificing anything at all by taking advantage of these low prices. Many suburban neighborhoods wouldn't be out of place in the most desirable U.S. cities. If high-end shopping in glittering malls is your thing, South Africa has plenty. Developed country creature comforts are available everywhere.

I'm very much looking forward to my own retirement here in my seaside village south of Cape Town. If you think you might like joining me, you can contact Abroadscope here.