{"id":675833,"date":"2023-04-01T13:00:18","date_gmt":"2023-04-01T11:00:18","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=675833"},"modified":"2023-03-31T16:47:49","modified_gmt":"2023-03-31T14:47:49","slug":"this-is-how-much-economic-power-south-africas-passport-holds-in-2023","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/lifestyle\/675833\/this-is-how-much-economic-power-south-africas-passport-holds-in-2023\/","title":{"rendered":"The real power of a South African passport"},"content":{"rendered":"<p>Despite South Africa being the wealthiest country in Africa in 2023 &#8211; with the third-strongest passport on the continent &#8211; it offers poor economic mobility to its growing private wealth looking for financial stability, offering only 15% access to the global GDP visa-free.<\/p>\n<p>This is according to the Africa Wealth Report 2023, which analysed the passport power and economic mobility of Africa&#8217;s wealthiest countries and their citizens \u2013 presented by the director of Economic Research and Statistics at the Islamic Development Bank (ISDB) Institute, Dr Areef Suleman.<\/p>\n<p>&#8220;More than just a travel document, our passports can define our financial freedoms regarding access to international investment and business opportunities,&#8221; said Suleman.<\/p>\n<p>This narrative came to light during the Covid-19 pandemic, which revealed the disparate impacts of global shocks due to country-specific differences.<\/p>\n<p>As a result, cross-country access and mobility are increasingly viewed as an insurance policy against economic and political uncertainties that persist in the current precarious global landscape.<\/p>\n<p>&#8220;Consequently, investors and businesspeople are looking for ways to ensure a steady stream of profits and stable consumption in unpredictable times, and economic mobility in terms of visa-free access to more stable and larger economies is one way to achieve this objective,&#8221; said Suleman.<\/p>\n<p>To quantify this, the report focused on the Henley Passport Power score. This newly developed term indicates the percentage of global GDP each passport provides to its holders visa-free \u2013 and what emerges is an &#8220;unequivocal link between passport strength and economic power,&#8221; noted Suleman.<\/p>\n<p>This metric combines Henley Passport Index data and the World Bank&#8217;s GDP data, ranking all 199 passports according to their power score.<\/p>\n<p>When viewed through this lens, the citizens of Africa&#8217;s wealthiest countries have low passport power and poor economic mobility.<\/p>\n<p>Regarding passport power &#8211; looking at the number of countries that can be accessed visa-free &#8211; Seychelles is ranked on top in Africa, giving its passport holders access to 153 countries.<\/p>\n<p>Mauritius follows this in second and South Africa in third, giving their passport holders access to 146 and 106 countries, respectively, visa-free.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Passport-power.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-675877\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Passport-power.png\" alt=\"\" width=\"678\" height=\"680\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Passport-power.png 678w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Passport-power-300x300.png 300w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Passport-power-150x150.png 150w\" sizes=\"auto, (max-width: 678px) 100vw, 678px\" \/><\/a><\/p>\n<p><strong>The real power of South Africa&#8217;s passport<\/strong><\/p>\n<p>&#8220;Passport holders of Africa&#8217;s wealthiest country, South Africa, have access to almost half of the world&#8217;s 227 destinations visa-free. While this might sound reasonable, a better measure of mobility for investors lies in their access to the world&#8217;s economic output,&#8221; said Suleman.<\/p>\n<p>&#8220;This is reflected in the Henley Passport Power score, which completely changes the picture,&#8221; he added.<\/p>\n<p><strong>The 106 (47%) of the world&#8217;s destinations South Africans can access without a prior visa account for only about 15% of the world&#8217;s GDP<\/strong> &#8211; presenting a very poor economic power for investors residing there.<\/p>\n<p>In contrast, despite its small population size and ranking as the 6th wealthiest country in Africa, Mauritius has access to 146 countries (64.7% of the world) afforded to its passport holders &#8211; giving them access to 57.30% of the world&#8217;s GDP.<\/p>\n<p>This is especially significant considering that Mauritius contributes a mere 0.01% to the global GDP while South Africa contributes considerably more at 0.45%.<\/p>\n<p>Regarding other African countries, Egyptians can access just 53 countries visa-free, representing nearly a quarter of the globe, but they only have access to a mere 4% of the global GDP.<\/p>\n<p>While the 46 destinations Nigerians can travel to without needing a visa represent 20% of the destinations worldwide, they account for only around 2% of global GDP.<\/p>\n<p><a  data-lightbox=\"post-image\" href=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Passport-power-score.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-675917\" src=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Passport-power-score.png\" alt=\"\" width=\"669\" height=\"399\" srcset=\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Passport-power-score.png 669w, https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/03\/Passport-power-score-300x179.png 300w\" sizes=\"auto, (max-width: 669px) 100vw, 669px\" \/><\/a><\/p>\n<p>The report shows that when it comes to visa-free access to global economic output, the citizens of African countries and other developing nations with sizable and growing private wealth are at a distinct disadvantage, added Suleman.<\/p>\n<hr \/>\n<p><strong>Read: <a href=\"https:\/\/businesstech.co.za\/news\/wealth\/675823\/south-africa-has-lost-thousands-of-millionaires\/\" rel=\"bookmark\">South Africa has lost thousands of millionaires<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The latest Africa Wealth Report revealed how much of the world&#8217;s wealth a South African passport affords to its holders in 2023. <\/p>\n","protected":false},"author":10,"featured_media":675925,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9876],"tags":[17935,26],"class_list":["post-675833","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lifestyle","tag-africa-wealth-report","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/675833","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/10"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=675833"}],"version-history":[{"count":10,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/675833\/revisions"}],"predecessor-version":[{"id":677235,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/675833\/revisions\/677235"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/675925"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=675833"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=675833"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=675833"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}