Employee Relocation within Africa - How to Establish Policies and Stay Compliant

Employee Relocation
  • Last updated: March 1, 2024

It’s official: Kenya and Rwanda have scrapped visas for all Africans, opening their borders to free intra-African movement, much like Benin, The Gambia, and the Seychelles.

What does this imply, concretely?

It means that free movement within the continent will usher in juicier business opportunities, making transactions easier and more dynamic. While there are only a handful of African countries allowing such openness for the moment, there is little doubt that other African nations will also hop on the trend. In fact, the African Union (AU) has been encouraging ratification of such laws for a long time now.

With borders being brought down, business opportunities will bloom everywhere across Africa – and you may just have to follow them wherever they are.

But how can you do that? How can you ensure that your employee relocation initiatives don’t crash and burn? Relocation policies.

These provide much needed parameters and rules to ensure that your relocation projects come to fruition.

What is a relocation policy?

Relocation policies are employer-sponsored benefits given to workers who have consented to relocate for work, or to potential new hires to persuade them to opt for a job offer that requires moving to a new location.

The terms “relocation policy” or “relocation package” both describe the financial benefits that an employee gets to help with moving expenses as well as the support they receive with logistics.

But is relocation in Africa even worth it?

Beyond the pursuing of business interests, there are many reasons why companies choose to offer relocation opportunities to their employees across Africa:

  1. To improve employee safety
  2. To improve the quality of services that employees receive
  3. To lower operating costs and increase profit margins
  4. To improve access to resources (better infrastructure, sourcing of raw materials, better access to the supply chain)
  5. To benefit from tax incentives (tax credits, exemptions, deductions), especially those that are activity-specific
  6. To enjoy a more stable political, environmental, and economic climate, which helps to improve a company’s resilience

How a relocation policy can help

In addition to assisting companies in ensuring that all workers who are being relocated receive fair treatment, a well-defined relocation strategy also helps with:

  • Application uniformity. Relocation policies often contain a uniform registration procedure. This ensures that every employee gets the same benefits, promoting equality in the workplace and openness.
  • A well-defined strategy and framework reduce the stress associated with moving, which improves employee happiness and retention. With moving being on the top of the most stressful experiences a person can go through, this is a crucial, yet often overlooked benefit of relocation policies.
  • Streamlined decision-making: short guidelines cut down on administrative delays by giving management and HR a point of reference when making choices.
  • If they have the proper strategy in place, any business that promotes or permits relocation options can experience improvements in everything from market share to employee loyalty.
  • Systematized relocation rules aid in the budgeting and management of relocation expenses for businesses.

What a relocation policy comprises

A well-defined relocation policy will cover the following aspects:

  • It will clearly stats the goal of the policy and identify the people it covers
  • The eligibility requirements will specify which employees are eligible for assistance with relocation
  • The policy will describe the costs that the corporation will pay for as well as any restrictions or limitations.
  • The policy should contain a list of benefits for relocation. It details the aid and services offered (for e.g.: travel reimbursements, housing assistance, and moving costs) by the company
  • The policy will also stipulate a time frame for the duration of the benefits, describing how long benefits continue after migration
  • The policy will also detail any return obligations, outlining any duties an employee has to carry out in the event that they depart the Organisation following a move.

Other relocation policy considerations

Among the other factors to consider when creating a relocation policy are:

  • Understanding the legal aspects of work permits and visas to promote prompt processing
  • Insurance and healthcare: it is advantageous for both businesses and employees to guarantee that workers have access to excellent medical care in the new place of employment
  • Cultural education: providing employees with information about the new customs, language, and manners will make the transition easier for them
  • Taxation: educating staff members about tax obligations in their new country and their home country aids in their financial preparation for the transfer. To ensure a seamless relocation, the tax concerns related to global mobility must be resolved.

Compliance and relocation policies

Businesses must follow local rules and regulations when relocating employees in Africa to prevent economic, reputational, or structural consequences. The following measures will help to prevent this:

    • Establishing legal Organisations for new locations in Africa
    • Recognizing and adhering to immigration laws and procedures
    • Obtaining all the data required in each place to ensure tax compliance
    • Making sure employment agreements and contracts are in compliance with local laws
    • Enlisting the assistance of relocation management firms and legal counsel to maintain compliance

How Africa HR Solutions can help

Thanks to our extensive experience in the African continent, our team is best qualified to advise you on relocation to 50+ African countries. Africa HR Solutions also guarantees 100% compliance through our PEO and EOR offers so your employee relocation programs can take place safely, and equally important, worry-free for you.

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GRANT GERAGHTY

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Grant Geraghty is the longest-serving member of the Africa HR team. This resident subject matter expert and client champion is responsible for gaining a deep understanding of our clients’ unique HR needs in Africa and providing tailored solutions that align with their business objectives. Grant collabourates closely with our clients to ensure that their requirements are properly implemented, providing ongoing support and guidance throughout the process.

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KEVINA TAKOORDYAL Africa HR Team

KEVINA TAKOORDYAL

HEAD OF OPERATIONS

Kevina Takoordyal has a BA Hons Business Management from the University of Glamorgan, UK, with MBA in leadership and Innovation, MBA General, PMP Certified, and Agile Scrum Master. She currently works as the Head of Operations at Africa HR Solutions Ltd with more than 20 years of proven leadership capabilities in Operations, Business Development, People Management, Process Optimization, and Project Management in the Financial Services, BPO, Banking Industry, and Heath Care Industry. In Senior leadership roles with an international footprint across Europe working and extensive Pan- African experience from a compliance, finance, and operations angle, Kevina comes across with a panoply of cross-functional skills. Kevina also serves on a few Boards, Non-Independent Executive at MioD and for NGOs on a voluntary basis, a coach and mentor to aspiring female leaders across Africa and Mauritius.

Kevina is a firm believer in Servant Leadership with a strong focus and commitment to uplifting others, with the ability to deliver through a highly engaged – diverse team, and works towards consistently synergistic value creation. While being a focused and adaptive thinker and Kevina is actively participating in panel discussions on Innovation, CX, Digital transformation.

Kevina serves as Project Assessor for the National Youth upskilling program. She has been recognized as Global Talent in a few companies, Ceridian, and International SOS Ltd whereby she has been awarded a few scholarships and had the opportunity to be mentored by Senior Vice President in the US. Award Winner in various fields and at a national level and recognized including Super Achiever Leader Award in Africa in 2016, Awarded Africa Women Leader 2018.

VILOSHNA PACKIRY POULLE​

VILOSHNA PACKIRY POULLE

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Viloshna is an experienced finance professional with 18 years of expertise in strategic financial planning, financial analysis, cash flow management, systems and controls implementation, financial reporting, and continuous process improvements. She currently serves as Head of Finance & Business Support, where she has successfully automated and leveraged the financial reporting system capabilities to ensure efficient company operations.

Viloshna’s background includes senior roles in a multinational pharmaceutical company and a large listed Mauritian conglomerate. Her meticulous attention to detail and strategic thinking have streamlined financial processes, making her a valuable addition to any finance team. Viloshna is a qualified finance professional with an FCCA qualification and an MBA, bringing valuable expertise to any Organisation.

In her current role, Viloshna leads the company’s Treasury and Payments function, including the fulfillment of the company’s cross-border payments into Africa. With her strong educational background and extensive experience, Viloshna consistently demonstrates her ability to optimize financial operations, minimize risks, and improve profitability. Her expertise in financial reporting and process improvements make her a valuable asset to any Organisation.

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MARK DU PREEZ

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A qualified lawyer who joined Africa HR Solutions in July 2020, Mark Du Preez has experience working in private practice for a reputable law firm in South Africa. He also played commercially focused roles at a leading private bank, wealth management company, and outsourcing firm in South Africa and Mauritius.

Mark has played a pivotal role in Africa HR Solution’s risk mitigation strategy, which positively impacted P&L performance over the years.

He currently leads the Partnerships function of the company including relationships and oversight with in-country partners (ICPs) across Africa.

Alex Daruty - Africa HR Team

ALEX DARUTY

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Alex has more than 15 years of experience in the global, strategic development of both enterprise and consumer brands in categories including technology, transport, enterprise software, entertainment, and travel.

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Originally from Mauritius, he holds bachelor’s degrees in International Business, Finance and Management from the University of Nevada, Reno.