Daily Archives: April 7, 2025

This company tracked migration patterns in South Africa for a year – Here’s what they found

New findings from the 2025 South African Migration Report by Wise Move reveal interesting patterns in the movement of people across the country.

While Gauteng continues to lead in internal migration, the Western Cape has emerged as the dominant force in inter-provincial relocation, drawing attention to changing economic dynamics, lifestyle preferences, and new career opportunities.

Gauteng, South Africa’s economic powerhouse, remains the country’s primary destination for internal migration, accounting for 60.3% of all intra-provincial relocations in 2024.

With over 16 million residents, it’s no surprise that people continue to flock to the province for its dynamic job market, bustling urban development, and career opportunities.

However, the province also faced a significant net loss of residents, with a 20.1% decrease in inter-provincial migration.

This suggests that while Gauteng is a launchpad for many young professionals starting their careers in cities like Johannesburg and Pretoria, a considerable number eventually choose to move elsewhere.

The rapid turnover reflects a trend where people initially drawn to Gauteng’s economic opportunities decide to settle down in other parts of the country once they’ve gained some career stability.

While Gauteng experiences high internal migration, the Western Cape is emerging as the big winner in inter-provincial moves. In 2024, 32.4% of all inter-provincial moves were directed towards the province. What’s more striking is that the Western Cape has managed to retain much of this influx.

Only 15.1% of residents from the province relocated elsewhere, showing that it’s not just attracting people but keeping them as well.

The province’s appeal lies in its coastal lifestyle, diverse economic opportunities, and the increasing popularity of remote work. As more South Africans seek a change of pace, the Western Cape offers a high quality of life, making it a prime destination for people looking to move away from Gauteng’s hustle and bustle.

A significant portion of inter-provincial migration in South Africa flows between Gauteng and the Western Cape. In fact, people moving from Johannesburg and Pretoria to the Western Cape made up a combined 48% of all inter-provincial moves in 2024.

This highlights the allure of the Western Cape, particularly its coastal cities like Cape Town, which offer both job opportunities and a more relaxed lifestyle.

However, the migration isn’t a one-way street. While many are moving to the Western Cape, there’s also a noticeable trend of people relocating from Cape Town back to Gauteng or to other regions like Gqeberha in the Eastern Cape.

These return moves accounted for 25% of out-migration from the Western Cape, illustrating the dynamic nature of South African migration patterns, driven by career changes and lifestyle preferences.

While inter-provincial migration gets much of the attention, internal movements also paint a crucial picture of the migration landscape. Gauteng remains the top province for internal relocations, accounting for over 60% of all intra-provincial moves.

Its population density, coupled with an ever-changing job market and housing demand, contributes to the province’s high level of internal mobility.

The Western Cape, although much smaller in population, has a growing influence on internal migration, accounting for 29% of the country’s internal moves.

This is largely driven by its thriving local economy and the appeal of its lifestyle, including the growing property market fueled by people relocating from other provinces.

In contrast, the Northern Cape, which is South Africa’s largest province by land area, has seen minimal internal migration, reflecting its stable and close-knit communities.

The report also highlights the age demographics of movers. Young professionals aged 24 to 35 made up 31.2% of all relocations in 2024, driven primarily by career changes, lifestyle upgrades, and family growth. People aged 35 to 44 followed closely behind at 24.4%, suggesting that relocation is often linked to key life events.

The trend also shows a decline in migration among older age groups, with the 55 to 64-year-olds and 65+ age group representing 10.7% and 7.6% of all moves, respectively. This indicates that, for many South Africans, moving is largely a phase of life experienced during the earlier, more mobile stages of adulthood.

While Cape Town remains the most popular destination in the Western Cape, smaller cities like Paarl and George are attracting a portion of the migration flow. Surprisingly, however, the Garden Route and West Coast, known for their scenic beauty and relaxed lifestyle, saw only a small percentage of the influx — 9% and 5% respectively.

In contrast, urban areas like Sandton, Johannesburg Central, Randburg, and Midrand are leading destinations for internal migration within Gauteng. Sandton, in particular, took 26.5% of all relocations, underscoring its status as a major business hub.

Boksburg and Kempton Park in the East Rand also saw significant migration, highlighting the continued appeal of Gauteng’s key residential and commercial areas.

Here’s how many families have moved to Cape Town over the last two years

In recent years, the Western Cape has emerged as a prime destination for South Africans relocating within the country, a trend commonly known as semigration.

Several factors contribute to this shift, including a desire for a better quality of life, economic opportunities, and an increasingly stable property market. This movement is not only attracting local buyers but also foreign investors, which further drives up property prices in the region.

Pam Golding notes that the initial wave of semigration to the Western Cape began between late 2013 and late 2016, with a resurgence post-2020, largely influenced by the pandemic, the 2021 civil unrest, and growing concerns over municipal service delivery.

According to Lightstone Property’s 2024 report, the number of homeowners opting for interprovincial relocation has significantly increased. In 2019, only 16% of homeowners chose to move to another province; by 2024, that figure had surged to 27%. This marks a noticeable shift in the mobility of South African homeowners.

Cape Town, under the leadership of the Democratic Alliance since 2006, has become the country’s best-managed major city, drawing middle-class families from poorly governed metros, especially after the rise of remote working during the COVID-19 pandemic, as reported by Bloomberg.

The influx of new residents has created a shortage of affordable housing, further pricing locals out of the market. Data from Statistics South Africa shows home prices have risen by 30% over the five years ending in March 2024.

“The numbers are quite staggering,” said Geordin Hill-Lewis, mayor of Cape Town. “In the last two years, 100,000 families moved to Cape Town from elsewhere in South Africa,” with approximately 80% of these households coming from Gauteng.

City officials approved more than 4 000 plans for buildings, including residential, industrial and commercial works, worth R7.5 billion in the three months through December, a 61% increase in value from a year earlier, spokesperson Luthando Tyhalibongo told Bloomberg.

In its latest budget, the provincial government said it will invest R30.879 billion in 924 projects over the next three years, ensuring communities have access to better roads, housing, schools and healthcare facilities.

While there have been calls locally for the city to intervene in the housing market with mechanisms such as price controls, Hill-Lewis doesn’t agree. “That’s a very bad idea and has perverse consequences, where you actually get less investment, and therefore higher prices over time.”

To address the increasing demand for housing, Cape Town is fast-tracking municipal planning processes, with changes to planning by-laws expected. These changes will help reduce the approval timeline for construction plans from around two years to a few months, allowing the city to better respond to the growing housing demand.

“We want to see applications move through the system quicker and deliver more affordable accommodation,” said that mayor, however, he strongly opposes the idea of price controls. “That’s a very bad idea and has perverse consequences, where you actually get less investment, and therefore higher prices over time,” he said.

The city plans to invest R120 billion in infrastructure, including power, water, and transport networks, over the next 12 years. Visible policing and other measures to combat crime will also be implemented.

As the demand for properties in established hotspots like the Southern Suburbs and Stellenbosch continues to grow, new areas are emerging as the next desirable locations.

Areas such as George, Somerset West, and the West Coast are gaining traction, showing that as one area becomes saturated, others with better value for money and a similar quality of life are rising in popularity. This shift in demand is reshaping the Western Cape’s property market and offering new opportunities for both buyers and investors.

Cape Town’s Southern Suburbs

Popular Areas: Constantia, Claremont, Rondebosch, Newlands
These suburbs have long been sought after by families for their proximity to top schools, parks, and suburban living, while still being close to Cape Town’s city center. High demand in these areas continues to push up property prices.

Stellenbosch & Surrounding Areas (Cape Winelands)

Popular Areas: Stellenbosch, Franschhoek, Paarl, Somerset West
With its prestigious universities and picturesque surroundings, Stellenbosch remains a top choice for semigrants. The charming atmospheres of Paarl and Franschhoek, coupled with their proximity to Cape Town, are also driving demand. Somerset West, known for its family-friendly environment, is growing in popularity as well.

The Garden Route

Popular Areas: George, Mossel Bay, Knysna, Plettenberg Bay, Sedgefield
The Garden Route is becoming increasingly popular, especially with retirees and those seeking a quieter, slower-paced lifestyle. George and Mossel Bay offer more affordable alternatives to Cape Town, while Plettenberg Bay and Knysna attract higher-end buyers.

The Boland (Ceres Valley and Worcester)

Popular Areas: Worcester, Ceres, Robertson
As established areas like Stellenbosch become saturated, towns further inland, such as Worcester and Robertson, are gaining traction. These areas offer a quieter, rural lifestyle at more affordable prices, with easy access to Cape Town and surrounding nature.

Atlantis and the West Coast

Popular Areas: Langebaan, Yzerfontein, Velddrif
As Cape Town’s urban areas become more congested, the West Coast is emerging as an attractive alternative. The relaxed lifestyle, lower property prices, and access to nature are making towns like Langebaan and Yzerfontein increasingly popular.

Helderberg Basin

Popular Areas: Strand, Gordon’s Bay, Somerset West
The Helderberg Basin is witnessing a significant rise in demand due to its beautiful beaches, slower pace of life, and good local amenities. Somerset West remains a top choice for families, while Gordon’s Bay and Strand appeal to those seeking a coastal lifestyle at a more affordable price.

The Overberg

Popular Areas: Hermanus, Gansbaai, Swellendam
Hermanus, known for its stunning coastal scenery, is becoming a sought-after destination for semigrants, particularly those seeking a blend of outdoor living and a growing infrastructure. Gansbaai and Swellendam offer more affordable properties while still maintaining the coastal charm, making them attractive to those looking for quieter areas with easy access to nature.

The dynamic property market in the Western Cape continues to evolve as semigration reshapes demand and introduces new areas for buyers and investors to explore.

The national treasure funding South Africa’s democracy

The South African Revenue Service (SARS) has announced preliminary gross revenue collection of some R2.3 trillion as at the end of March, representing a year-on-year growth of 6.9%.

The record collection was announced by the SARS commissioner Edward Kieswetter who briefed the media on Tuesday.

Preliminary net revenue results totalled R1.855 trillion with refunds totalling some R447.7 billion.

“Net revenue of R1.8551 trillion is a growth of R114 billion higher, a growth of 6.6% against the prior year and exceeds the revised estimate by R8.8 billion. Which is, we believe in the current environment, a very credible outcome delivered by SARS,” he said.

The Commissioner described the revenue service as a “national treasure” in making sure that South Africa’s democracy is funded.

“Whilst we administer laws, our higher purpose is about enabling government to build a capable state that fosters economic growth and social development, serving the wellbeing of all South Africans.

“Without the important institution of SARS, our democracy would be unfunded. SARS is a national treasure that belongs to all of us and should never be taken for granted,” Kieswetter said.

An increase in revenue collection directly results from an increase in broader taxpayer compliance, and some compliance initiatives stand-out in the crowd, said Jashwin Baijoo, associate director and head of Strategic Engagement & Compliance at Tax Consulting.

“SARS have been clear that they have, and will, take full advantage of technological advancements, including AI, data science, and machine learning algorithms, to counter criminality and non-compliance.

“These data driven insights serve to inform SARS of all transactional records pertaining to specific taxpayers, and using AI, the “manhours”, and concomitantly room for error, is significantly reduced.”

An entire team is no longer needed to extrapolate these records into strong legal cases for non-compliance, but rather tech-savvy individuals co-existing with AI. This collaborative approach, said Baijoo, enables SARS to gain access to a comprehensive dataset, facilitating more robust evaluations of taxpayers’ financial activities.

Tax Consulting noted that interventions from SARS’ Compliance Programme generated R301.5 billion in compliance revenue.

Although accounting for only circa 13% of gross revenue collections, the 2024/25 Compliance Programme revenue demonstrates a 15,8% year-on-year increase.

Breaking the “compliance revenue” down further, the main contributors were resolving outstanding tax debts. “Aiding SARS’ compliance crusade, are the data driven insights derived from AI use, including processing of taxpayer bank statements without any prior warning, or consent, and even gaining access to taxpayer information from Crypto-Asset Service Providers, upon request,” said Baijoo.

Kieswetter said that the minister of finance has set for SARS revenue estimate of R2.006 trillion for the 2025/26. “This conveys confidence by the minister on SARS’s ability to meet this challenge. We will spare no efforts in rising to this challenge.”