International companies flocking to South Africa

South Africa is increasingly becoming the preferred location for international companies looking to set up shared services.

Recruitment agency Robert Walters said that offshoring, which is the relocation of business operations or services to another country, has become a key part of many companies’ global strategies.

A recent Robert Walters survey showed that 60% of business leaders ranked South Africa as the most attractive country for offshoring.

This surpasses popular offshoring sites of India (10%), the Philippines (10%), and Eastern Europe (19%).

The top reasons for offshoring in South Africa were access to skilled talent (41%) and retained earnings (39%).

South Africa also offers the advantages of strong English proficiency, time zone alignment with major markets, and a growing reputation for business and tech services.

The main industry that has shown notable growth in offshoring activities to South Africa includes Tech and IT, which accounts for 53% of new roles.

This is followed by demand in customer service and support (18%), finance and accounting (20%), and HR and recruitment (9%).

“We’re seeing a strong pipeline of international businesses establishing operations in South Africa – particularly in tech and support functions,” said Robert Walters Africa Samantha-Jane Gravett. 

“South Africa offers an agile, highly capable workforce that aligns well with global business hours and standards.” 

With many organisations looking to build resilience, agility, and efficiency into their operating models, Gravett added that South Africa is stepping up as a go-to solution.

Offshoring has been founded to influence job markets globally. Most business leaders agree that it encourages upskilling in home markets. 23% also believe it creates global job competition.

Although these factors highlight the competitive nature of offshoring, they can also highlight the broader trend of global talent mobility, with businesses tapping into South Africa for specialised skills and services.

“As digital transformation accelerates and companies reassess the future of work, the trend towards offshoring and nearshoring is expected to grow,” said Robert Walters

“South Africa stands out for its combination of skilled talent, strong infrastructure, and alignment with international business practices, making it a strategic location for building global capabilities.”

Global workers making their way to South Africa

The South African government is trying to take advantage of the increased interest in offshore and remote work and has recently introduced a Remote Work visa.

Like offshore workers, foreign remote workers come from foreign countries and work for foreign companies while living in South Africa.

Due to the low-cost, weak rand and high standard of living in South Africa, many foreigners have moved to South Africa while working for a foreign employer.

To capitalise on the move, the Department of Home Affairs introduced a Remote Work visa last year to accommodate mobile professionals from other countries.

The Department said that the legislation will see foreign nationals spending their earnings locally and paying taxes to SARS.

Remote workers must provide proof of employment, needing at least R650,000 per annum.

They will need to have a valid passport and no criminal record, and they must be from a country where South Africa has a tax agreement to ensure their funds go into the local fiscus.

At the start of the year, Phindiwe Mbhele, Director of Corporate Accounts at the Department of Home Affairs, said there had been an uptick in enquiries over the visa.

The department sees a rise in the uptake of the Remote Work Visa in 2025 as the news about the visas gains traction.

Global immigrant experts Xpatweb estimated 40 million digital nomads worldwide, and LinkedIn estimates 10,000 remote workers in South Africa.

Despite the estimated increase of remote workers in South Africa, Home Affairs Minister Leon Schrieber recently said that the department has only issued 24 remote worker visas since May 2024.

The information was supplied to Rise Mzansi in a written parliamentary question, which finds it difficult to believe that there are only 24 digital nomads in the country.

The GNU member is concerned that digital nomads are potentially entering South Africa under false pretences and bypassing local tax laws.