[imagesource:yourstrulycafe.co.za]

Not so long ago, we reported on how Cape Town’s exploding population is putting strain on the water supply, and local’s pockets – driven in large part by the influx of digital nomads setting up shop here.

Several Saffas have taken to social media to complain since noticing the surge in the laptop-wielding new generation of remote workers flocking to the Mother City to work and play.

Now, even the BBC is catching on to the phenomenon, noting how these digital nomads have found themselves at the sharp end of a debate about whether or not they are good for the more permanent residents.

The conversation continues, where on one end, supporters see the potential for an economic boom, while on the other end, locals fear being increasingly priced out by foreign visitors whose home currencies go further than the ailing Rand.

Az’emahle Dyubeni, one of SA’s young social media content creators, expressed how the city is facing a “digital nomad epidemic” that is pushing up housing and other costs. Az’emahle has lived in Cape Town all her life and has become privy to the increased numbers of remote workers, mostly from the West, suddenly taking up space here.

“When I walk into a cafe I hear German, French, Dutch and American accents,” she tells the BBC, painting a vivid picture of the international flavour of Cape Town’s new workforce.

Indeed, why wouldn’t they set up in one of the world’s most picturesque cities if all that is needed is a decent internet connection?

Marley Rose Harris, who describes herself as a digital entrepreneur, called the city the “most magical place in the world” on TikTok, where others have caught on to how working with Table Mountain and ocean vistas as your backdrop is better than any office back home.

“Cape Town is an ideal destination for digital nomads who are looking to blend aspects of tourism and work into their day-to-day activities,” says Alderman James Vos, who is on the city’s committee for economic growth.

The temperate weather, vibrant community, low cost of living, and the power of the euro/ dollar over the humble rand are all very attractive reasons for a seasoned traveller to stay here over anywhere else.

At the moment, digital nomads, who do things like copywriting or digital content creation, are allowed to live in the country and work for a foreign company for up to 90 days, though the time varies depending on their nationality.

Vos notes that research shows that these working visitors bring in a lot of much-needed money during their stay – around $2,700 each – or R50,000. That’s more than someone earning the average salary in South Africa can save in a couple of months.

The government is jumping on this financial bandwagon, though, with President Cyril Ramaphosa announcing in February a proposal for a remote-working visa that would be available to “so-called digital nomads, who are able to work virtually from any location in the world” and are employed by foreign organisations.

Despite the rising prices in South Africa, digital nomads earning in foreign currency get way more bang for their buck than any local.

Ms Dyubeni says she is being priced out of the city where she has spent her entire life. She fears that she will never be able to afford to move out of her parents’ and live on her own like she had always hoped.

The competition over properties in Cape Town, and the rental costs being the highest in the country, has made it feel like Cape Town is teetering on the edge of a more serious housing crisis.

The average rent is around R10,000 a month and prices rose by just under 4% between 2022 and 2023, according to South African property site PayProp. Grant Smee, a rental agent based in Cape Town, tells the BBC there has been a “significant spike in foreigners seeking three-to-six-month rentals”, indicating a rise of remote workers.

“These digital nomads are making Cape Town unliveable,” Dyubeni sighs.

Smee agrees that this is a growing concern for locals as they are being priced out of the housing market. Foreigners have more power than locals because they can offer landlords a higher rent than the asking price, or they pay for a few months upfront – which many South Africans cannot afford to do, he noted.

Smee reckons if the proposed digital nomad visa is introduced, it could worsen the housing situation. He thus believes that the city authority needs to take a step further and implement rent control, though he can see that most landlords would be against this.

We can grumble away all we want, but it looks like the scours of digital nomads are here to stay. At this rate, we might all be better off as cafe owners.

[source:bbc]