Hamba kahle SA, molo Malta!
Black families climb aboard the second passport bandwagon
● Sandton capital investor Sihle Mkhize* is preparing to pack his family off to an idyllic Mediterranean island to give them the best life he can.
The move to Malta is part of a “plan B” that Mkhize has mapped out for himself, his wife and their children in his quest to secure a better quality of life.
He says the decision to adopt a new nationality was driven by poor service delivery in SA, fears for his family’s security and the lure of visa-free travel.
Mkhize, who asked to remain anonymous to protect his business relationships, is among a rising number of black entrepreneurs who are taking steps to emigrate or obtain second passports — a path previously pursued almost exclusively by white South Africans.
Among the countries that offer residence or citizenship to foreign investors are Malta, Portugal, Moldova and the Caribbean islands of Antigua and Barbuda.
English-speaking Malta, in particular, with its balmy climate, is proving a popular choice for South Africans.
Close to Italy, it boasts a low crime rate and a number of industries, including hitech manufacturing, food and beverages, tourism and international financial services.
The minimum investment needed to acquire residence rights in the European territories starts from about à95,000 and citizenship can be bought with an investment of between à980,000 and à2m (R15.8m to R32.3m).
Companies specialising in providing foreign residency and citizenship services report increased interest from wealthy black families. They say these clients are not always looking to relocate, but are investing in a plan B for “future-proofing”.
Sandra Woest, a senior director at Latitude Residency and Citizenship, said that historically, the company dealt with older, successful families “predominantly white and Indian”, but now more black families were making inquiries.
Have money, can travel
“The demographics of higher LSMs [living standards measures] are changing in SA and Africa as a whole, and the [increase] in black people exploring the possibilities of alternative citizenship merely reflects this.”
Woest said people had the same needs and concerns, irrespective of their ethnic identity.
“Every person wants to feel safe, have stability and security and provide their children with greater opportunities in life. Should those with financial means simply rely on their country of birth to provide all of this? Or should they take the initiative to come up with a back-up plan?
“We have also seen an increasing number of black families with significant personal wealth, and so they are able to access services such as these,” she said.
Mkhize believes his move to Malta will give his children the chance to be educated in the UK and result in better opportunities when they are ready to start careers.
Having a second passport for him means visa-free travel and easy mobility to conduct business.
“The Malta passport is the best. My wife and children will be living there in future when the older one attends school in the UK,” said Mkhize.
“I will still be commuting between SA, where my main business is, and the UK, where I have an office, as well as Malta.”
Amanda Smit, managing partner at Henley & Partners SA, said it was becoming increasingly clear that wealth alone was not adequate insurance against the complex risks — economic, ecological, technological, and geopolitical — “posed by the current century”.
“Instead, global connectivity is emerging as the new competitive edge,” Smit said.
“[People] may be wealthy, but if they are not globally connected they will remain constrained by the particular policies, resources, and limitations of the country where they are citizens or residents.”
She said alternative residence and citizenship represented the most direct route to global mobility, flexibility and access.
One passport good, two better
“Having multiple passports or residence permits and a fully globalised network and identity is increasingly being seen as one of the most effective means of future-proofing for black South African high and ultra-high net worth individuals,” said Smit.
Pam Golding International has also seen a number of black professionals looking for second citizenship through investment.
Chris Immelman, head of Pam Golding International, said: “This may be the beginning of a trend as we have recently received inquiries from several black professionals looking to invest in the region of R9m in countries such as Portugal, Malta and the US.”
Immelman said none of the approaches to his company from black South Africans had yet resulted in a finished transaction.
* Not his real name