Negativity around South Africa Inc. has been building for some time with questions swirling over the country’s economy, its struggling equities market, corporate scandals and heated politics.
Amid strained performances for many stocks on the JSE, a growing chorus of commentators have called on wealthy South Africans to move more offshore. Some have pointed to the likes of Mauritius as having an attractive tax regime.
While this is a fair point, SA actually has its own tax legislation that interestingly rewards and incentivises investors for taking a risk in the local SME space.
The regime is Section 12J and it’s becoming a fast-growing alternative asset class with over R6bn being invested in it since 2015.
Darryn Faulds, who is a 12J fund manager for MeTTa Capital (one of our clients), recently explained how investors can use this vehicle to still invest in SA while receiving a tax benefit.
- MeTTa Capital is a client of Fox Street Communications.