Gar Lippincott and Daniel Ryan of Atlantic American Partners were in South Africa recently looking for high net-worth individuals wanting to invest in the US.
It’s a warm spring day in Johannesburg in September, and Gar Lippincott and Daniel Ryan are in formal corporate attire. It is Lippincott’s first time in the country, and he is jet-lagged.
A little over two months ago, he was booked to fly to South Africa from the United States (US) but was turned back at immigration. A complete irony for a man who helps people move to the US.
“At Atlanta airport, the lady looked at Daniel’s visa and let him through and she looked at my visa and she said ‘I am afraid you can’t get on the plane because you have to have a blank page on your passport’. I said ‘I have three blank pages’ and she said ‘no, it’s supposed to be the one that says visa on it’. She said it’s the rules in South Africa so I had to sadly go back home… now when I was coming, I was told that’s not an issue anymore so I am happy they have made traveling into the country easier,” says Lippincott.
With a brand-new passport, he’s here looking for people who want to invest in the US in exchange for a green card. Lippincott says he has always been interested in South Africa for its growth prospects.
“From what I understand, the things that are causing short-term decline in the economy in South Africa are set up to provide long-term growth and hopefully people will understand this,” he says.
Ryan agrees: “I lived in Malawi for 12 years and South Africa is still considered the shining one throughout the continent. Even with all the problems, everyone still wants to come here because of the opportunities.”
According to an AfrAsia Bank report, South Africa comes second to Mauritius in having the highest number of high-net-worth individuals. These are the kind of people Ryan and Lippincott target through their work at Atlantic American Partners. The company has real estate investors and professional private equity fund managers that manage money for banks, insurance companies, and pension funds. In addition, they help people get US green cards and ultimately US citizenship through the US government’s EB-5 Immigrant Investor Visa Program.
“Basically we look for people who want to move to the United States and we help them do so legally by investing and the nice thing is, with our program, they are also able to get a nice return on investment,” he says.
According to Lippincott, for a $500,000 investment that creates 10 jobs for American workers, you could get a green card in about two years and be a US citizen in about six or seven years.
“Twenty seven countries have an investor visa program but with most of them, it’s essentially a fee you pay. For example, you pay $1.5 million in Australia… The fee is a one-time fee and you never get it back. One of the biggest advantages with our program is you actually invest the $500,000 into a fund. We act as a trustee of that money and within five to seven years, they get that money back with a bit of return on investment and you are a permanent citizen in the US.”
Atlantic American Partners invests the money in real estate developments like hotels, apartments and student accommodation.
“What’s nice about the programme is it doesn’t only cover the investor; it covers the spouse and children under 21. Our biggest family was a Hungarian family with seven children so they got nine green cards for $500,000,” says Lippincott.
The company says it has had a positive response in South Africa.
“Two months ago, we were here and we had scheduled six presentations for 100 people and we ended up speaking to 450 people. Most were business people, people worried about the economy, people worried about the political future of South Africa and people concerned about the education future of their children,” says Ryan.
According to Lippincott, despite the news on the clampdown on immigration, the US economy is booming and will perish without immigration. In the era of Trump, that’s heartening news indeed.
Bad Times For Billionaire Branson–Staff At Virgin Atlantic Asked To Take Unpaid Leave As Coronavirus Cripples Air Travel
Billionaire entrepreneur Sir Richard Branson has been criticized by a U.K. politician for airline Virgin Atlantic’s request on Monday for staff to take eight weeks unpaid leave during the coronavirus pandemic.
Labour MP Kate Osborne, the second U.K. politician to be diagnosed with coronavirus, described Virgin Atlantic’s decision as “an absolute disgrace” on Twitter.
Author Liam Young tweeted, “Virgin Atlantic have 8,500 employees and Branson has asked them to take 8 weeks unpaid leave. It would cost £4.2 million to pay all of these employees £500 a week to cover this leave. In total that’s a cost of £34 million for 8 weeks.”
The implication appears to be that billionaire Richard Branson, whose net worth Forbes estimates $3.8 billion, could afford to cover this cost.
Virgin Atlantic confirmed in a statement Monday that it plans to reduce its schedule and prioritize routes based on customer demand. The airline predicts an 80% reduction in flights per day, and adds, “As a direct consequence we will be parking approximately 75% of our fleet by 26 March and at points in April will go up to 85%.”
Virgin Atlantic describes the changes as “drastic measures” put in place to “ensure cash is preserved, costs are controlled, and the future of the airline is safeguarded.”
Adding, “Staff will be asked to take eight weeks unpaid leave over the next three months, with the cost spread over six months’ salary, to drastically reduce costs without job losses.” The airline confirms its decision has received the support of unions BALPA and UNITE in agreeing to the unpaid leave.
A Virgin Atlantic spokesperson said: “The aviation industry is facing unprecedented pressure. We are appealing to the [U.K] government for clear, decisive and unwavering support. Our industry needs emergency credit facilities to a value of £5-7.5 billion, to bolster confidence and to prevent credit card processors from withholding customer payments.”
Bad Times For Branson
Branson’s business empire has been hit particularly hard by the coronavirus pandemic.
On March 14 the Virgin Voyages cruise ship operation decided to postpone the launch of its new Scarlet Lady cruise line. “The current global health crisis is understandably making many people rethink upcoming travel plans,” Virgin Voyages confirmed in a statement.
On March 5, British airline Flybe — which is part owned by Virgin Atlantic— collapsed after it succumbed to its financial woes and weakened demand because of the Covid-19 outbreak.
Following the announcement of Flybe’s collapse, Virgin Atlantic said: “Sadly, despite the efforts of all involved to turn the airline around, not least the people of Flybe, the impact of Covid-19 on Flybe’s trading means that the consortium can no longer commit to continued financial support.”
Flybe, which once was Europe’s largest independent regional carrier, narrowly escaped collapse in January, after being bought by Cyrus Capital, Virgin Atlantic and Stobart last year.
Virgin Galactic, Branson’s publicly traded space tourism arm, has seen its shares slump since its mid February high of $37.26 on the NYSE. Having lost another 10% of value as of 4:30 pm U.K. time on Monday, Virgin Galactic is priced at $13.30 and falling. Branson’s Virgin Investment Limited owns 47% of Virgin Galactic through an investment entity, Vieco.
Emerging Economies, But Weaker Passports
Africa dominates the bottom of the rung in the 2020 Henley Passport Index. A majority of the continent’s passport-holders don’t have the luxury of visa-free travel around the world.
The African Union may be gearing for a common African passport, but for now, it seems like most African passports don’t have what it takes to get to other parts of the world.
In the recently-released Henley Passport Index, which measures all the world’s passports according to the number of destinations their holders can access without a prior visa, only two African countries –Seychelles and Mauritius — are in the top 50.
The rest of the continent dominates the bottom quarter of the rankings with weaker passports than most, pointing to difficult and intensive visa processes in most cases.
Africa’s biggest economy and one of its most influential, Nigeria, is at the end of the travel freedom spectrum, at a pitiful number 95 with Djibouti. Nigeria’s population of 200 million can only travel to 46 countries without obtaining a visa in advance.
Even passport-holders from Samoa and Serbia have a better chance of traveling to most places in the world, visa-free, than those in South Africa, the African continent’s second biggest economy.
Ranked 56, the number of global destinations South African passport-holders can travel to is 100.
It is followed by its southern African neighbor, Botswana, ranking at 62 with a score of 84.
Seychelles, the archipelago country in the Indian Ocean, is Africa’s top-ranking African passport in this regard, at 29 with access to 151 destinations worldwide.
It is quickly followed by Mauritius which is at 32 with a score of 146 destinations passport-holders of this country can visit.
The lowest-ranking African country is Somalia at 104. Passport-holders from this tiny nation in the Horn of Africa can only visit 32 countries without a pre-departure visa
Globally, Asia dominates the list. For the third consecutive year, Japan has secured the top spot on the index — which is based on exclusive data from the International Air Transport Association (IATA) — with a visa-free/visa-on-arrival score of 191. Singapore holds on to its second place position with a score of 190.
Executive Travel: Slikour’s Mexico
The South African hip-hop artist and entrepreneur experienced a hurricane and a seismic spiritual shift in the city of Cancun.
It has been a journey, a lot to learn and a lot learned,” says Siyabonga Metane, popularly known on South African hip-hop stages as ‘Slikour’.
The learnings have been in music and business, but the journeys have been beyond both.
Just two years post South Africa’s democratic elections in 1994, Slikour was part of a rap group named Skwatta Kamp, formed on the streets of the country’s Gauteng province, with the aim of commercializing the local hip-hop scene.
The group consisted of seven members and most of them went on to release solo albums. Slikour released two, Ventilation Mix Tape Vol.1 and 2, in 2005 and 2007. Long before that, in 2002, Slikour had turned entrepreneur, co-founding Buttabing Entertainment, a record label and artist management organization.
Today, he is also the founder of SlikourOnLife, a prominent urban culture online publication that he started in 2014 catering to music lovers.
Returning to the word ‘journey’, it especially sparks memories of a trip he undertook in 2011 to Cancun, a Mexican city on the Yucatán Peninsula bordering the Caribbean Sea, known for its beaches, resorts and nightlife. Slikour was there for a television shoot as part of a group. The trip still stands out in his mind.
He was not blown away by the city initially, but as he visited some of Cancun’s tourism attractions, he began to change his perception.
Ultimately, it proved to be what he calls an amazing rendezvous.
“The people were pretty much speaking Spanish,” he chuckles, recalling being immersed in the local culture.
READ MORE | Executive Travel: Mpho Popps’ Ghana
“There are a lot of laborers there and the people are beautiful and accommodating, but we never really spoke or interacted with the community.”
Slikour decided to savor the city’s famed nightlife instead and see for himself what all the hype was about.
It all began and ended with tequila, a distilled alcoholic drink and one of Mexico’s most famous exports, made of the blue agave plant from the city of Tequila in Mexico.
“Everything you do there is done with tequila. I don’t drink alcohol, but I had to accept and apply myself because there, they don’t use tomato sauce, they use tequila; I literally had to get into the tequila swag; it’s everything there. Tequila started there,” Slikour says.
Mexico is known for its recurring hurricanes too, which Slikour also got a taste of while there.
“After a few days of getting there, we were warned of a hurricane, and asked to close our doors and windows, and because these things happen regularly, there’s a drill to follow. The hurricane wasn’t a major one but I was excited because I wanted to see it. I had to look through the window,” he says.
The hurricanes are so frequent in Mexico that he likens the precautions taken to lighting a candle during South Africa’s frequent power cuts.
Despite this exhilarating encounter with nature, the real earth-shaking experience for him, however, happened deep inside a cave in the city of Cancun – and also deep inside him.
READ MORE | Executive Travel: Nomzamo Mbatha’s Kenya
“My spiritual [epiphany] was when I went into those caves. You go in there with your self-assurance, claiming you understand everything. Thereon, they tell you where everything comes from and all of a sudden, you become this very small thing in this big ecosystem. It just shows how everything affects everything,” Slikour says.
The tour guides explained how everything inside the cave came from rain, elaborating how it was connected to the core of the earth; which is where they were at the time.
Slikour was in Cancun for two weeks, and also visited the pyramids.
“The Mexicans didn’t have all the mathematics that we have now but the pyramids were built to perfection. It just showed you how forward-thinking they were and how behind we are in as much as we think we are forward; we just have technology. We don’t think the way historic societies used to think,” says Slikour, in deep reflection.
Mexico is a place he would return to, anyday, in a heartbeat.
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