Reverse immigration: why South Africans overseas are returning home

A growing number of South Africans living abroad are reassessing whether staying overseas still makes sense, with early signs of a gradual return home.

This is according to Sean Kelly from Parity Wealth Managers, who says the shift marks a change in how South Africans approach emigration.

“There’s still around 900,000 South Africans living abroad in places like the UK, Australia and the US,” Kelly said.

“But what’s changing now is that far more people from that base are starting to reassess whether staying abroad still makes sense financially and from a lifestyle point of view.”

Cost of living drives decisions

Kelly said the traditional model of leaving South Africa for better opportunities is evolving.

“The new model often builds opportunity globally, but lives where life works better financially.”

He said one of the biggest drivers behind the shift is purchasing power.

“It’s a lot cheaper to live in South Africa than some of these costly markets.”

Kelly pointed to global price comparisons, noting that everyday expenses stretch further locally.

“You can afford better housing and more space in South Africa… your money effectively goes twice as far.”

Healthcare is also a factor.

“South Africa offers high-quality private medical care, and even with medical aid, it’s often significantly more affordable than private healthcare in the UK or US.”

Lifestyle trade-offs abroad

The lifestyle adjustment overseas is another key consideration.

One example highlighted the stark difference in domestic support between Cape Town and Berlin, where families often move from daily help to only a few hours a week.

Kelly said many South Africans only realise these trade-offs after leaving.

“They realise how good they had it in South Africa.”

Who is coming back?

The return trend is not limited to one group.

Kelly said young professionals, families and retirees are all part of the shift.

Young professionals are increasingly able to work remotely.

“Between 30% to 40% of professionals in developed markets now do some form of remote or hybrid work,” he said.

This flexibility allows them to earn globally while living locally.

For families, the cost of raising children is a major factor.

“Schooling is 30% to 40% cheaper in South Africa than in places like the UK and New Zealand.”

Retirees are also returning to maximise their savings.

“They’ve built up a nest egg in pounds or dollars, and they can enjoy a significantly higher standard of living here.”

A gradual return, not a flood

While the numbers are not yet overwhelming, Kelly said the direction is clear.

“It’s not a mass return yet… but definitely a change in direction.”

For many South Africans abroad, the decision is becoming increasingly practical.

“Do I stay in a high-cost environment, or do I move somewhere where my money works harder for me?”

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For more information, listen to Kelly on 702/CapeTalk’s Early Breakfast with Africa Melane using the audio player below: