A growing number of South African entrepreneurs are finding a new route into the European Union—not through embassies or flights, but via a digital ID issued by a country more than 10,000km away.
More than 400 South African startups have already enrolled in the initiative, which allows non-EU citizens to establish and run EU-based companies entirely online.
Launched in 2014, Estonia’s e-Residency offers a government-issued digital identity that provides access to the country’s advanced digital infrastructure. It enables e-residents to register an Estonian company, open business bank accounts, sign contracts digitally and handle EU VAT filing without being physically present in Europe.
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According to the Estonian e-Residency team, South Africa is one of the top adopters in Africa.
The programme is proving particularly popular among entrepreneurs in tech, digital consulting, creative services and e-commerce, who are drawn to the promise of hassle-free access.
“The digital economy is global, and Estonia has built a borderless business platform,” said Thabang Mashile, a metallurgical engineering graduate.
“South African entrepreneurs are increasingly using it to gain credibility and scale.”
The process begins with an online application and background check, followed by biometric verification and collection of a secure digital ID card, usually from the
Estonian Embassy in Pretoria or Johannesburg.
Once approved, users can register an Estonian private limited company in less than 24 hours through Estonia’s online business portal.
Through PayPal and fintech services like Wise, Payoneer and Swedbank, e-residents can set up business accounts and begin trading globally.
Although the programme does not offer tax or physical residency, it provides access to EU regulations, digital signatures and full online business management.
Dineo Mokoena, a Cape Town-based marketing consultant and e-resident, said the programme allowed her to work with European clients who required invoicing in euros and a registered EU business.
“I didn’t need to travel, hire a lawyer, or set up a foreign office. It was all done from my laptop,” she said.
For entrepreneurs like Christelle Sidoine, the programme has been simple.
Sidoine, who previously launched a tourism business in South Africa, found the process of starting her Estonian company Easy Assistant Co simple.
“I did everything online,” she said. “I use Xolo, PayPal, TransferWise [Wise] and all the online resources to manage all my clients’ projects.”
Her experience stands in contrast to the red tape she faced locally.
“With e-Residency, you can easily register an EU business online without relocating and free from bureaucracy. Great for entrepreneurs,” she added.
But experts warn that while e-residency simplifies global business access, it does not absolve South African users from domestic compliance.
Local e-residents must still meet South African Revenue Service obligations and navigate international tax rules.
Even so, some say Estonia’s approach offers lessons for South Africa’s policy landscape.
“It shows how digital infrastructure can be used to empower small businesses and attract global engagement,” said Lefa Mahlangu, a digital trade researcher in Pretoria.
“There is growing interest in whether similar initiatives could be developed locally,”
Mahlangu said.
