[imagesource:easy-peasy.ai]
According to Census 2022 data, Cape Town’s population is now booming at 4,772,846 people.
That’s a remarkable 27.6% jump from what it was in 2011.
While this might seem lekker for the economy, it does put a major strain on the environment… and locals’ pockets.
IOL notes that the Mother City’s rapid population growth has added extra stress to its already existing water infrastructure problems.
The City said increasing Cape Town’s water supply sources is crucial to being able to accommodate everyone, even as population growth and climate change pose direct risks to water security in a city prone to drought.
In a bid to increase water supply sources, the Water and Sanitation Directorate has implemented the New Water Programme (NWP), which aims to add 300 million litres of water per day from new sources by 2030. This will be done by clearing alien invasive plants, extracting groundwater through aquifers, reusing water, maintaining infrastructure and planning for desalination in the long term.
Meanwhile, more and more people are flooding Cape Town as the door to the rest of the world opens ever wider. Digital nomads have been flocking over to our shores:
@itsnthabim That’s nice 🙂. Hope the locals are doing ok though! 🤝🏾 #digitalnomads #digitalnomadsincapetown #gentrification #capetown #southafrica ♬ original sound – Nthabi | Style. Thrift. Travel
Business Insider reported that the country has been preparing to introduce a digital nomad visa, allowing foreign nationals to live and work remotely in the country.
The new visa categories, including a remote working visa and a critical skills visa, aim to attract skilled workers, especially from the tech industry, by offering the lifestyle benefits of remote work. Criteria for the critical skills visa include a minimum annual income of R1 million ($55,000) to ensure contributors can maintain a high standard of living and bolster the local economy.
If you feel a little panicked at the realisation that this could make things a lot more expensive (even outright unaffordable) for locals, then you are not alone. Locals all over TikTok have been begging digital nomads to leave, pitching all the bad things about the Mother City in a bid to dissuade them from coming and staying.
@alexaraad #stitch with @Nthabi | Style. Thrift. Travel no hate personally, i just h8 traffic ❤️ #capetown ♬ original sound – lex ❀
Cape Town ranked the best African country for digital nomads throws into question the pressure foreign presence will put on rental prices, restaurant prices, and general space.
While I acknowledge that this conversation can feel like it’s tapering into xenophobic rhetoric, which is dangerous, one cannot help but feel like the locals are being increasingly priced out by foreign digital nomads and investors whose currencies go further than the ailing Rand.
IOL reported in a separate article that local first-time home buyers and everyday renters in Cape Town are having a tough start to 2024 for this exact reason.
Not only are some areas such as the Atlantic Seaboard and areas in the City Bowl becoming highly unaffordable for locals to buy into, rentals themselves are on the rise.
The publication asks if this could be the beginning of a new type of housing crisis.
One TikToker – @NomadicKingdom – claims the cost of living in Cape Town is 76% lower than in the US and rent 71% lower. Obviously this makes it a perfect spot for foreigners with cash, not so much locals who are trying to compete for property and rentals with their often stagnant salaries.
Another – @marcelineshideout – says “finding an apartment to rent in Cape Town is like finding a needle in a haystack”. And estate agents say some homes are being rented site unseen, with landlords wanting two months deposit upfront.
One TikToker added that while rent is cheap if you have foreign currency, “for us born here and who live here, in SA, in general, we can’t even afford to breathe”, adding that Capetonians are being pushed out of Cape Town.
On the other hand, digital nomads do spend significant amounts in the countries they find themselves in, helping to grow the economy and create more jobs in the tourism and hospitality industries.
However, warns Grant Smee, managing director of Only Realty Property Group, “landlords must think about the bigger picture, and the possibility of contributing to a housing market that primarily caters to international earners who can outprice locals, which could cause a housing crisis as seen in many major cities.”
The proposed new visa is still in the draft stages and would – if passed – allow remote workers to live and work in South Africa for a maximum period of three years while being employed by an overseas company.
This means a higher percentage of international remote workers will seek out traditional long-term lease agreements, and since they have such deep pockets, it will be harder and harder for landlords to choose options that don’t add to an impending housing crisis.
Besides the locals needing to furiously budget to keep up with digital nomads and not get priced out, while the ailing water supply feels the pressure too, there is also the strain all of us folks put on the overworked power grid.
Maybe at the end of the day, the power cuts and water shedding will give digital nomads pause before deciding to set up shop here.
Either way, there are other solutions:
@superinformative Sentiment around digital nomadism is becoming heated but we shouldn’t discourage it. We just need to have it regulated efficiently. Here’s a couple of things the local government can do to alleviate local residents. #digitalnomad #digitalnomadism #capetown #southafrica #tiktoksouthafrica #superinformative ♬ original sound – superinformative
[source:iol]
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