“Small, medium and micro-sized enterprises (SMMEs) are the engine room of our economy,” says Neill Hobbs, Director and co-founder, at Anuva Investments.
“Rampant unemployment and lacklustre GDP growth will only be addressed through teamwork between government and the private sector, with the former implementing ‘business friendly’ policies and the latter ensuring there is enough capital‘on tap’ to fund new and emerging business ventures”.
South Africa’s 2019 general election will soon get underway with the electorate choosing one or other of the dozens of contesting political parties. As the queues ebb and flow around the various polling stations countrywide the conversation will undoubtedly turn to solving the country’s economic woes, not least the unemployment timebomb.
Jobs and the ‘promise of jobs’ have featured prominently in both the media and party manifestoes in recent months because there is consensus that solving the jobs problem will make burning issues such as inequality and poverty easier to address.
One of the ways in which taxpayers can contribute to meaningful jobs creation and growth is to invest in section 12J compliant venture capital companies (VCCs). Section 12J, introduced by the South African Revenue Services (SARS) in July 2009, seeks to stimulate the local economy and create jobs by offering participating taxpayers a 100% tax allowance on their investments into VCCs, which in turn acquire and manage a portfolio of qualifying SMMEs. Since its 2014 incorporation Anuva Investments Ltd (Anuva) has created or saved more than 350 jobs through the wise application of up to R235 million in shareholder capital.