Indian Skills, study plan to spice up SA Economy

Cape Argus 26th July 2005

Hundreds of Indian students and entrepeneurs are expected to help relieve skills shortages in South Africa through a scheme by an Indian migration company to enroll its students here.

India International Group and SA Migration International have signed an agreement to bring more than 700 students to South African Universities, colleges and technikons.

Robbie Ragless of SA Migration International, said the move would encourage foreign investment and help bilateral trade and tourism. The students would be chosen from the IT, Hospitality management and tourism fields.

"The partnership will definitely encourage foreign investment and help our economy to grow" Ragless said.
"India International Group realised that South Africa had an extremely high standard of education and an emerging market. We will be attracting scarce skills to make up for the shortages in the job market of highly skilled individuals.

"Locals will benefit as the new conditions for foreigners opening businesses require them to employ 5 South Africans"

Rohit K Gupta of India International Group &
Rod Maxwell of SA Migration International:

SAMI gets invited by the Presidents Office to the Union Buildings in Pretoria

SA Migration Intl were invited to attend a forum on migration trends within South Africa and the contributing factors for foreign in-migration. Rod Maxwell ( CEO ) and Robbie Ragless ( Marketing Manager ) joined the number of guests invited by the Office of The President and gave input on the growing number of foreigners that are now making their journey to South Africa to live, work, retire and conduct business.

The report compiled will go towards drafting legislation concerning urban migration trends as well as foreign in-migration trends.

Read the speech presented by Rod Maxwell, CEO of SA Migration International:

Introduction:

We have had extensive experience in both inbound and outbound migration, facilitating South African citizens to Australia, Canada and New Zealand. In our five years of operation, we have noted a significant reduction in outbound migration after the attacks on September 11th 2001 in America. Our Interpretation of this turn around was that the world view that “safety existed outside our borders” in seemingly developed countries was removed and indeed there was no “safe country”.

With positive economic signals, such as the appreciation of the Rand, positive economic growth, lower inflation and interest rates, SA started to show itself as being attractive to investors and tourists alike and has become the 5th most desired migration destination in the world. The relaxation in exchange controls and a substantial decrease in the cost of living makes it attractive for foreigners to come to SA. Less onerous on migration legislation has made it easier for people to visit and as tourists visit and like what they see, so the prospect of migrating here becomes more appealing.

SA has become attractive in a number of ways and as combined marketing efforts by the
Govt and private sector penetrate the world, so the word spreads that South Africa offers one: quality of life, first world banking systems, financial participation in the worlds most emerging economy coupled with a relaxed atmosphere and excellent tourism opportunities.

This has resulted in growth and investment into the agricultural, technological and manufacturing environments within our industries. It is interesting to note that a number of Asians especially the Chinese are purchasing farms to do crop farming and have started bean curd farming to cater for Chinese local markets and exports.

Key driving forces for Migration:

It is perhaps interesting to note that prior to 2001 there was a significant trend by qualified, skilled citizens to leave SA and there was a flood to countries like Australia, New Zealand and Canada. The observation was that SA would go the route of Zimbabwe.

We have observed a trend in the past 3 years, that there has been a significant decline in people wanting to leaving SA and a recent survey by the Sunday Times suggested that the reasons why people are currently leaving South Africa is for the migration experience as apposed to the past when it was suggested that crime was the factor

Within the booming SA economy, the perceptions differ by racial lines as to how economically viable the country is. The predominant push from SA is amongst white and coloured race groups who feel left out of the new opportunities. This is further compounded by the fact that a number of these people were in previously safe employment sectors and with global changes and pressures in local markets, have not been able to upskill and take advantage of the opportunities and accordingly now feel unwelcome.

Whilst not always race linked but competency driven, migrants will seek to move to greener pastures where their skills may be in better demand.

Most migrants don’t adequately research their new countries but are influenced by glossy brochures and here say leading to many of them being disillusioned in their new countries, unable to return by virtue of not being able to afford the return or pride.

Nature and type of migration ( Circular and Permanent ):

Outward:

We note that outbound migration is driven by circular and permanent needs.

Circular:

The perceived need to generate quick money in pounds or dollars to pay off study loans, houses, cars or travel with a number of younger people just wishing to see the world.

An increasing number of post 40 year olds with British ancestry links and who have been economically disadvantaged or due to poor retirement planning go to the UK merely to survive and or pay off mortgages etc with a view to return to SA. In the UK alone there are around 1 million SA citizens, most of them living according to these criteria.

Permanent:

These are people who wish to leave SA for no other reason than the migration experience or due to being disillusioned by SA through their own experiences either political, criminal or economic. Some view it as a perfect place to raise their children.

Inward:

There are generally 3 types of inward bound migrants:

• Younger more adventurous who wish to start a new life in a less predictable country.
• Those wishing to retire and live in a better lifestyle as apposed to back home,
• And people who see a country full of entrepreneurial opportunities that locals are not seizing due to being stuck in mindset of “ I must work for a boss” and get permanency in the way of a salary at the end of the month.

Discussion Points:

1 ( Migration vs Natural Growth in South Africa )

• Gautengs growth is based on economic factors.
• Part of the stability and natural growth is that crime is no longer seen as a push/pull factor for people to relocate from JHB to other regions like CPT or DBN therefore confirming that the growth is economically driven.

2 ( Migration push and pull factors in Urbanising SA )

The challenge presented is that as spouses and children leave their homes to join the market breadwinners, the exposure to urban living causes 2nd generation urbanites who will not want to go back to rural areas resulting in an additional demand for housing. This will inevitably increase the spiral towards slums and informal settlements amongst lower end people as they battle to find affordable housing.

3 ( Labour Migration and Remittances in Urbanising SA )

No Comment

4 ( Migration and rural-urban interface )

The challenge would be to educate people who are recipients to low cost housing to buy into the concept of ownership and paying for services ie: water rates as well as protecting and maintaining their environment in such a manner that facilities are kept in good condition and that the community owns these facilities ie: schools, parks, libraries etc

For example: The N2 gateway project in Western Cape

5 ( Foreign in-Migration in urbanising SA )

There are four streams of people migrating to South Africa

• Skilled Labour migrants
• Business
• Retirement
• Refugees

The first 3 groups are driven by language, specifically the ability to speak the English language. For example: African and SADEC as well as Asian and former Eastern Block countries whilst refugees are driven by the need to find a safe place removed from persecution.

With respect to entrepreneurial skills, a further factor to be considered is a number of African migrants who have settled in first world countries such as the UK, Canada and USA by migration programmes such as the UN Refugee programme have now consolidated their lives and SA offers them the perfect opportunity to come back to the soil of Africa and become part of an investor friendly environment.

Many of these people often have language problems not withstanding the fact that they have been living in English speaking countries for 15 ears or more and this results in them employing one or two foreigners on management level and the balance, SA nationals particularly in the retail environment as they understand the local market.

With respect to skilled labour, this process is a lot more complicated in that there is a general misunderstanding in the market place that people require a work permit prior to obtaining a job in the SA when indeed the reverse applies. Only employers with scarce skill requirements venture into this area largely because the profitability of their business dictates that they have to source foreigners and the lack of info available to these people lead them down a road of trial and error because local DHA, Foreign affairs and Embassies abroad are public unfriendly with not providing solutions but rather asking people to put themselves in a box to be assessed against.

Entrepreneurial migrant employment of staff will differ significantly depending on culture ie Asians for example Indians/Pakistanis will initially tend to employ people from their own people groups while people from the UK and America will tend to employ SA Nationals.

Cape Town voted 'Simply the Best' - many times over !

October 19, 2004

It's official. Cape Town (South Africa)is the best city in the world.

Don't take our word for it - that accolade comes from thousands of international travellers polled for one of the world's most prestigious travel surveys, the UK's 2004 Telegraph Travel Awards.

If you don't believe the Brits, take the Yanks' word for it. The American 2004 Condé Nast Top 100 Readers' Choice Awards has also placed Cape Town at the top of the heap in the Best City category for Africa and the Middle East.

And if that isn't enough, in the 2004 High Life Travel Awards, British Airways voted Cape Town the best city in the world in which to eat out, pipping New York, Sydney, London and Paris to the post.

The Daily Telegraph has published its travel poll for the past seven years. It is an independent market research survey of 25 000 Telegraph readers.

In its poll Sydney and Venice take second and third places.
Cape Town is also home to one of the best hotels in the world, according to the survey. The Mount Nelson Hotel was voted third-best city hotel in the world behind the Waldorf Astoria in New York City and the Shangri-La in Singapore.