Apparently, the Namibia Investment Promotion and Development Board has urged the government to grant wealthy foreigners with an interest in buying Namibian retirement farms permanent residency.

In a turn of events, the Home Affairs, Immigration, Safety and Security Ministry has launched an internal investigation, which has resulted in some of the ministry’s officials’ cellphones being confiscated. This is after the letter containing information on the prospect of a “golden visa” for wealthy foreigners was leaked to the media. In any case, what is the secret about this information?

A “golden visa” offers both benefits and drawbacks, depending on the perspectives of the investors and the host countries. While such a programme can generate significant economic benefits and provide valuable opportunities for investors, it also raises ethical concerns and may contribute to inequality. For instance, why would a government sell a piece of land to foreigners while indigenous people are landless?

What has more worth: the foreign money or the indigenous inhabitants of the country, especially those displaced long ago from their ancestral land and who have no prospect of deriving any real benefits from that ancestral land?

Therefore, policymakers should weigh the economic benefits against the potential risks when designing and implementing such programmes.

There is now golden visa legislation in place in over 100 countries around the globe, spanning five continents. Over 60% of European Union (EU) member states have programmes that are functional and active, with the United Kingdom and the United States of America having the world’s longest-running golden visa programmes. 

Benin, the Gambia, Rwanda and the Seychelles offer visa-free access to all Africans. These nations demonstrated the most inclusive policies on the continent.

Legislation

In its basic form, golden visa acquisition, or residence by investment and citizenship by investment, denotes the process whereby qualified, vetted candidates are granted either full residence or citizenship rights in exchange for a defined economic contribution to the host country.

To apply for a golden visa, one must purchase a property — real estate — in a host (foreign) country. This is the most common route and is offered by most golden visa countries. The cost of the real estate ranges from US$200 000 to over US$2 million (N$4 million to N$40 million).

Essentially, golden visas offer the opportunity for wealthy people to “buy the right to residency,” sometimes even having to live in the country. Programmes that provide residency through investment also allow affluent immigrants to streamline the residency process.

Pros

Economic Boost: One of the primary benefits of golden visa programmes is the significant financial investment they bring to the host countries. These investments take the form of real estate purchases, business investments, or government bonds. The influx of capital can stimulate economic growth, create jobs, and improve infrastructure.

Diversification investment: It offers an opportunity for investors to diversify their assets and protect them against political or economic instability in their home countries. By obtaining a second residency or citizenship, investors can ensure they have a safe haven in times of crisis.

Global Mobility: Golden visa holders often enjoy increased travel freedom, as their new residency or citizenship may grant them visa-free access to a greater number of countries. This can be particularly valuable for individuals from countries with limited visa-free travel options.

Access to quality services: The programme offers investors and their families access to better healthcare, education, and social services than those available in their home countries. These programmes are appealing to individuals from developing countries seeking a higher standard of living.

Cons

Ethical Concerns: Critics argue that golden visa programmes essentially “sell” citizenship and residency to the highest bidder, undermining the traditional values of citizenship and national identity. They argue that these programmes prioritise wealth over other factors, such as cultural integration, etc, which are important aspects of becoming a resident or citizen.

Inequality: The programme can contribute to inequality as it primarily benefits wealthy individuals who can afford the required investment. Those programmes may be seen as catering to an elite class while leaving behind those who cannot afford to participate.

Security risk: There are concerns that golden visa programmes can be exploited by criminals, tax evaders, and individuals involved in corruption and money laundering activities. Although many governments have implemented rigorous background checks and due diligence procedures, the risk of abuse is highly prevalent.

Real estate inflation: In some cases, the influx of foreign investment through golden visa programmes has led to inflated property prices, pricing locals out of the real estate market. This can exacerbate income inequality and create tension between locals and foreign investors. Similarly, if the golden visa programme is to be implemented in the country, the prices of tracts of farmland will be blown up, disadvantaging the locals.

Backlash

Controversially, these programmes trade economic investment for political rights. As such, some nations have stopped their golden visa programmes for these reasons, while others have put in place several rigid security and background checks on those looking to apply for golden visas.

Conversely, Portugal’s golden visa has lately lost some lustre. In 2024, a growing backlash from locals prompted the Portuguese government to narrow its visa programme. The backlash came as the influx of wealthy foreigners contributed to a housing crisis, pricing locals out of not just buying but renting as well.

In closing, and most notably, Namibia ranks as one of the world’s most unequal countries in terms of income. However, the quest for land and the ancestral land claim, especially among poor communities affected by the 1904-1908 genocide, have not yet been adequately addressed, and the land resettlement programme leaves much to be desired.

Therefore, the proposed golden visa programme should be open and above board. Otherwise, it would aggressively irritate septic wounds already incapable of healing to this day.

*JB Tjivikua is a retired major general of the Namibian Police.