CAPE TOWN – Increased tourism to the Western Cape, the motivation to create jobs and contribute towards economic growth and the attractive tax incentives have seen inflows into the Fairtree’s 12J solution.
Section 12J refers to a section in the Income Tax Act, which intends to stimulate investments in venture capital by allowing tax deductions.
Portfolio Manager, Joe Bester, emphasises Fairtree’s 12J solution was set up in the spirit of the original legislation – to contribute towards job creation and grow the local economy with investments into small and medium-sized enterprises (SMEs).
“Our tax incentivised Venture Capital Company (VCC), Fairtree Capital Hospitality, gives SMEs access to equity finance in the fast-growing hospitality and tourism sectors and the VCC owns four boutique hotels in KwaZulu-Natal, the Western and Eastern Cape,” said Bester.
According to the Minister of Tourism, Derek Hanekom, tourism is on the rise again in South Africa, thanks to the change in visa regulations and the reduced limitations of the Cape drought.