The Treasury has proposed placing a cap on the annual tax deduction that venture capital investors can claim for their investments in the shares of these companies.

The measure is opposed by the Southern African Venture Capital and Private Equity Capital Association (Savca) which represents the venture capital industry and in 2017 had funds under management worth R4,3bn. Growth of the industry which stimulates the development of SMEs has been helped by the tax incentives granted by government.

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.

Already subscribed? Simply sign in below.

Questions or problems? Email or call 0860 52 52 00. Got a subscription voucher? Redeem it now