By Daniel Logue
Bank One hosted a webinar on 11 May to discuss the opportunities and challenges faced by expats working and developing their careers in Africa.
Bhavya Shah, Head of Financial Services at Bank One in Mauritius, was joined by the Co-founder of Talenteum.com, Nicolas Goldstein, as well as the Owner and Director of Relocation Africa, Renè Stegmann – with the webinar being moderated by Platform Africa Co-founder Samantha Seewoosurrun.
Bhavya Shah: “You have to sort out your banking before you move”
Mr. Shah appreciated that “banking tends to be a worry for expats,” citing how expats often struggle with documentation and opening an account in their new country, and that it is difficult to move their credit histories.
It is necessary for expats to not only have a bank account both in their home country and their new country, for domestic expenses and day-to-day transactions respectively, but most importantly an offshore account, Bhavya Shah explained.
“This is critical because if you have to move the money with you, then that is expensive, that is complicated,” he stressed.
Mr. Shah explained that Bank One offers an Elite Offshore proposition which manages “foreign currency accounts, multi-currency cards,” and “a range of investment options,” offering financial security to those expatriating in Africa.
“You have to sort your banking before you move,” Bhavya Shah appealed to expats who may already find the logistics of finding accommodation and adapting to a new culture overwhelming.
However, as a self-proclaimed serial expat, Mr. Shah highlighted the sheer enrichment that comes with immersing yourself in different cultures, meeting communities from different backgrounds, and he claimed these experiences stay with the expat for the rest of their life.
Although Africa is a rapidly-developing continent, Bhavya Shah pointed out its severe “labour shortages” and “skill gaps in many areas,” but these challenges can be addressed by talented expatriates moving to Africa to fill these skills vacancies, developing their own careers and expertise in return.
Renè Stegmann: “Every country in Africa is completely different”
According to Renè Stegmann from Relocation Africa, “the continent is full of young talent,” but Africa needs to up its ante on educating this young talent to be able to utilize them, mentioning that there are already some educational organizations operating in Africa like the Mastercard Foundation.
She believed that some companies sending expats to Africa for career development haven’t been adequately funding them – “we need to make sure that the duty, or security, and both elements are addressed,” Ms. Stegmann added.
Expats are given lump sums by their companies to cover the relocation costs, but Ms. Stegmann explained: “What often happens is that the lump sum is not utilized 100% correctly or with suitable knowledge,” and so “finding accommodation within a certain budget,” often puts expats in a “precarious” situation.
To help expats settle into their new city or country, Relocation Africa has set up a portal which provides information and advice about the area they are relocating to, which would also be of use to undergraduates coming in to study at university.
Schemes like this package aren’t expensive for a company to run and this would also constitute a greater duty of care for their expats, something Renè Stegmann stresses is crucial for making expats feel comfortable which increases their chances of succeeding in their assignments.
Ms. Stegmann also highlighted the importance of expectation management so that expats aren’t negatively surprised by the situation in the country they are relocating to. “If there’s a shortage of housing, let them know that so when they’re here, they’re not frustrated because they can’t find suitable housing,” she explained.
“Every country in Africa is completely different,” with their own challenges, Renè Stegmann noted, citing the issues with South Africa’s electricity infrastructure, though expectation management will help prepare expats who were planning on relying heavily on the internet there for remote work for example.
Ms. Stegmann also highlighted that changing immigration legislation can be a general issue across Africa for expats which leads to confusion around work permits, not to mention expats “need to be aware of what the security protocols are,” of the African country they are relocating to.
Nicolas Goldstein: “The future is in Africa”
Nicolas Goldstein of Talenteum.com outlined that in order for Africa to become the next “booming” continent, it needs to invest in “energy, education and entrepreneurship.”
For example, the continent especially needs to think about “green energy,” but this requires high levels of skilled labour to fully develop this industry.
“We see a lot of solar energy in Africa. A lot of people from Western countries are coming to Africa to invest in solar energy,” Mr. Goldstein explained.
Investing in education is also crucial to Africa’s growth, largely because “the population is young,” so there is strong potential for a skilled workforce for energy production. “That’s why we see a lot of initiatives like the African Leadership University investing in African talents of tomorrow,” Nicolas Goldstein said.
In terms of entrepreneurship, Mr. Goldstein claimed that more and more people in Africa are starting up their own businesses, for example in Mauritius where the low cost-of-living attracts expats and is an “easy country” to start building a business, whilst Nigeria, Kenya, South Africa and Morocco are where much of Africa’s tech industry can be found.
Nicolas Goldstein’s concern is that expats coming to Africa with digital or premium visas are only “staying one year, two years in the country,” so he does not see the current flow of expats to Africa as “sustainable” for the continent’s growth, even if cities like Cape Town are socially diverse with a mix of expats in its population.
To conclude, the future is looking bright for not only expats moving to Africa to work and develop skills, with many evolving sectors like green energy being in need of skilled workers, but also for Africa’s existing young talent. Organisations like Mastercard Foundation are already investing in educating this young talent, but for those expatriating from abroad, schemes like Bank One’s Elite Offshore policy will provide expats with financial security as they relocate to develop their careers and contribute to Africa’s growth. As Nicolas Goldstein made clear, “The future is in Africa.”
The webinar can be viewed on Bank One’s YouTube channel here:
