In the ever-evolving global mobility landscape, affluent Africans often encounter challenges when travelling to Schengen countries and accessing the European Bloc. Whether due to time constraints or the complexities of obtaining a Schengen visa, the journey for many can be fraught with obstacles. However, amidst these challenges, a promising opportunity emerges through Residence and Citizenship by Investment (RCBI) programs, offering a seamless pathway to long-term solutions for those seeking mobility, security, and prosperity.
A complicated process
According to reports, nearly a third of Africans applying for a visa to Europe’s Schengen area are rejected. This is the highest refusal rate of any region despite the continent submitting the lowest number of applications per capita. Mehari Taddele Maru, a professor at the European University Institute, was quoted as saying, “The rejection rates for African applicants for Schengen visas are generally 10% higher than the global average, three times higher than the highest rejection rate.” The data also noted that Algeria saw the highest rate of refusals, with 46% of its more than 390,000 Schengen visa applications rejected in 2022. Nigeria, Guinea-Bissau, Ghana, Senegal and Mali all had between 40% and 45% of applications denied.
Africa News highlighted how the high visa rejection rates pose a particularly significant barrier for Africans looking to travel abroad. This significantly affects entrepreneurs, as it hinders their ability to expand their businesses beyond domestic markets. By limiting economic opportunities, they perpetuate dependence on local markets.
Frustration and growing wealth
Reports have highlighted how many North African citizens have complained that strict visa regulations thwart their desire to visit Europe. In addition to the visa being rejected, the application process can take more than six months. Sociologist and visa system researcher Ahmed Jemaa also spoke on the phenomenon, calling it “humiliating and exploitative”, as it affects everyone from students to highly skilled professionals including cardiologists and neurologists to businessmen despite a comfortable income of EUR 46.000 a year.
Given this trend, it is clear that the uphill battle many face in securing the necessary documentation for travel to Europe affects even the most affluent – a demographic that is seeing tremendous growth in Africa. Reports have noted that the continent is home to 135,200 millionaires, 342 centi-millionaires, and 21 billionaires, collectively holding a total investable wealth of USD 2.5 trillion. Additionally, Africa’s millionaire population is expected to rise 65% in the next decade, owing to the growth of critical sectors such as fintech, eco-tourism, business process outsourcing, software development, rare metals mining, green tech, media and entertainment, and wealth management.
The Appetite for RCBI Programs
Against this backdrop, it is no surprise that RCBI programs are growing in popularity among the affluent African population. These programs present a compelling alternative to the uphill battle of getting documentation to go to Europe and many other parts of the world. These initiatives allow individuals and their families to obtain residency or citizenship in a foreign country through investment, offering many benefits beyond the confines of a Schengen visa.
This trend was confirmed in the Africa Wealth Report 2023, which noted that there has been a significant spike in interest in residence and citizenship by investment globally, with a 46% increase in enquiries in 2022. The report highlighted that South Africa, Nigeria, Egypt, and Algeria were among the top 20 nationalities showing the highest interest in investment migration last year.
EU access and mobility
The freedom of movement RCBI offers is perhaps the most sought after by those exploring this pathway, providing unrestricted access to many European countries, with some programs also extending access to the UK, the US and beyond.
The most popular among Africans is the Portugal Golden Visa program, a flagship RCBI initiative renowned for offering the quickest and simplest path to an EU citizenship, achievable just five years from submission of Golden Visa application. Its accessibility to the Schengen zone and favorable tax regime also draw Africans’ interest. With a starting cost of EUR 250,000, this exceptional mobility opens doors to expanded business, education, and leisure opportunities, enabling affluent Africans to travel effortlessly across borders.
Similarly, Malta’s Individual Investor Program (IIP) provides a fast track to European citizenship for those seeking a permanent solution. With investment contributions starting from EUR 750,000, along with a real estate investment (either rental or purchase), and a charitable donation of at least EUR 10,000, applicants can obtain Maltese citizenship in as little as one year. This prestigious status grants the benefits of European Union nationality, including visa-free travel to Schengen countries and a range of other EU rights and privileges.
While these programs are on the pricier side, many investors find the benefits well worth the cost.
Safeguarding the future
Beyond convenience, RCBI programs offer affluent Africans a safeguard against geopolitical instability and economic uncertainty in their home countries. By diversifying their citizenship portfolio, investors can hedge against risks and secure a stable future for themselves and their families. This strategic approach enhances personal security and unlocks access to global opportunities for wealth preservation and growth.
Citizenship by investment programs in the Caribbean has also proved popular for African entrepreneurs seeking to diversify their wealth and mitigate risk, with costs starting from USD 230,000. Antigua and Barbuda, St. Kitts and Nevis, and St. Lucia all offer citizenship options in exchange for a qualifying investment, granting investors visa-free access to over 140 destinations worldwide, including the UK, Europe’s Schengen Area, and Singapore, within four to six months. These programs have consistently ranked among the top choices for African investors, with Antigua and Barbuda citizenship being the most enquired-about program in 2023, followed by St. Lucia and St. Kitts and Nevis.
Without a doubt, Residence and Citizenship by Investment programs offer a transformative solution for affluent Africans grappling with the complexities of obtaining a Schengen visa. By leveraging these initiatives, individuals can transcend barriers to mobility and unlock a world of opportunities previously beyond their reach. With the promise of seamless integration into European society and the assurance of long-term stability, RCBI programs stand as a beacon of hope for those seeking to navigate the global landscape particularly Europe with confidence and certainty.
Reach out to Citizenship Invest today, and take the first step toward your European journey.
