Wealthy South Africans are increasingly relocating to the UK – drawn by a combination of factors that extend beyond lifestyle or leisure.
As the UK faces its own exodus of HNW individuals following the government’s tightening of non-dom rules, it might come as a surprise that wealthy South Africans are being drawn to the island nation. While other wealthy internationals lament their increased tax exposure under Labour’s reforms taking effect in April, some South Africans have overlooked this potential financial burden and continue to see blue skies beyond Britain’s famously grey weather.
The number of South Africans living in the UK has continued to rise in recent years. According to data from the Office for National Statistics, there are now 227,000 South Africans in the country – an increase of 12.4 per cent over the past decade. Britain is home to the largest South African diaspora in the world, underscoring its enduring appeal for Springbok émigrés.
Perhaps the best-known South African in the world is Elon Musk, who left the country for Canada at the age of 17 in 1988. Musk and others who departed during that period often cited apartheid as a driving factor in their emigration. Yet the legacy of South Africa’s segregated past remains evident today, reflected in stark financial inequalities between white, black and Indian South Africans – and in persistently high crime levels. The nation currently has the fifth-highest crime rate in the world, according to the World Population Review.
Related
[See also: The best relocation and shipping specialists]
Today, South Africans settling in London often gravitate towards some of the city’s most affluent neighbourhoods. The leafy enclaves of Putney, Richmond, Clapham and Wimbledon are especially popular, each known for their strong sense of community and comfortable affluence.
Gavin Murphy, founder of K and L Wines and Spirits UK, a distributor of South African wines, relocated to Britain seeking the opportunities the country could offer his family.
He said: ‘It was a wonderful opportunity for our kids to go through a schooling system, which would then lead into a different university system, which would then lead into a different job market, which was the big attraction.’
Content from our partners
‘There is a type of South African who wants to leave the country because the grass is greener on the other side.’
The UK boasts one of the most in-demand education systems in the world, with private day and boarding schools particularly popular among international HNW families. Its university system is equally attractive to South Africans, with Scotland’s Universities of Edinburgh and St Andrews frequently favoured.
[See also: Safari in style at Sabi Sabi’s Earth Lodge in South Africa]
Murphy notes that, while the geographical distance between South Africa and the UK is considerable (13,500 km), the one-hour time difference makes cross-border business remarkably straightforward.
Similarly to Murphy, another recent South African émigré, who moved to the UK this year, also highlighted education as a key factor in his decision. He wished to remain anonymous.
‘With regards to schooling for my kids, once they get education here, the world is their oyster,’ he said. ‘In South Africa it might be a bit more difficult for them to branch out from there.’
The man, who owns an enterprise software company, also cited business opportunities in the UK as a major factor in his family’s decision to relocate.
[See also: Why so many wealthy Americans are moving to the UK]
‘I moved here for my business, as there is such a strong tech industry. What affected me was definitely the talent here, there being no language barriers and the reliable infrastructure,’ he said.
‘It has been helpful to be able to access my suppliers, my service providers and the decision makers – face to face is a big thing. In our business, we have to build teams which understand regulatory requirements like compliance, and the talent here is far more advanced and experienced than at home.’
Another entrepreneur who has felt the financial benefits of the UK is Graham Carter, founder and head of private clients at Unforgettable Travel Company.
‘You’ve got less red tape on business over here,’ he said. ‘The rules of engagement and the playing field are a lot more even. That is not to say that there are not some incredibly successful South African businesses, but by moving to the UK, you have access to a much bigger market.’
Carter, who grew up in South Africa, relocated to the UK in 2001, noting that his close British ancestry made the move easier than it would be for those without a claim to citizenship.
Beyond entrepreneurial opportunities, Carter observed that the UK provides young South Africans at the start of their careers with far greater prospects than back home.
‘In the UK, people might change jobs every four or five years,’ he said. ‘Whereas in South Africa, there aren’t as many positions on offer, so mobility is limited.’
[See also: The best travel and holiday advisers]
While HNW South Africans often cite business opportunities as the main reason for moving, some emigrate for personal safety.
‘We went through a crime-related personal trauma, which is something that unfortunately affects a lot of us in the country,’ said Norman Edwards, head of the transformation office at financial services firm Wesleyan.
‘Not all my colleagues [in the UK] will always agree with me, but I keep reminding them that once you’ve seen the dark, you know what light looks like – and just how beautiful this country is.’
