Second residency as a hedge against capital flight & currency risk for Africans

In the face of escalating capital flight, currency depreciation, and tightening global financial regulations, African entrepreneurs are increasingly turning to the acquisition of a second residency or passport as a strategic necessity rather than a mere luxury. The trend underscores a growing desire for autonomy and control over one's financial and personal future, a sentiment echoed by Jeremy Savory, CEO of Savory & Partners, a leading firm in citizenship and residency by investment. Savory points out that the quest for a second nationality is not a recent phenomenon amplified by the COVID-19 pandemic but a long-standing trend among families across Africa and beyond. By diversifying their nationalities, individuals seek to mitigate risks associated with their native citizenship, such as restricted access to international capital markets, higher borrowing costs, and limited travel privileges. One of the key advantages of securing a second residency or citizenship is the enhanced financial flexibility it affords individuals. Savory cites examples of clients who transitioned from high-risk to lower-risk categories for banking and investment purposes by acquiring a new nationality. Additionally, access to residency programs like the golden visa schemes of Greece, Portugal, and Latvia provides entry into the European Union, enabling easier banking and business operations within the EU's borders. Beyond financial considerations, the need for compliance with evolving global regulations in cross-border finance is paramount for individuals seeking to safeguard their wealth across jurisdictions. Savory emphasizes the importance of due diligence at multiple levels when engaging in citizenship or residency programs, highlighting the rigorous compliance standards upheld by his firm, Savory & Partners. As the landscape of citizenship and residency programs evolves, African entrepreneurs are increasingly drawn to options that offer strategic value and long-term benefits. Savory identifies Malta, Portugal, and Grenada among the countries providing attractive pathways to citizenship or residency. While Malta's direct route to EU citizenship faces regulatory challenges, Portugal's residency-to-citizenship program and Grenada's visa-free access to the UK, Schengen area, and the United States present compelling opportunities for investors. In a shifting global environment marked by economic uncertainties and geopolitical tensions, the decision to pursue a second residency or citizenship emerges as a proactive strategy for safeguarding assets, securing financial stability, and enhancing global mobility. With options becoming more limited and expensive, African entrepreneurs are urged to act decisively and seize the opportunity to diversify their nationalities in a bid for greater resilience and autonomy in an increasingly fragmented world.