'doing growth differently'
How wider S12J benefits will attract venture capital
Streamlining section 12J of the Income Tax Act while boosting accountability measures hold huge promise for attracting impact capital
The new political era under President Cyril Ramaphosa has unlocked optimism for SA and the region. Business confidence is up, and the first quarter of 2018 has seen renewed investor interest. But, as identified by analysts at a recent panel discussion at the UCT Graduate School of Business, Ramaphosa is faced with the daunting task of "doing growth differently". With widening inequality and growing social anger over land and economic exclusion, SA urgently needs to find a route to more inclusive growth. Growing the investing for impact segment, where the primary aim of the investment is generating measurable and beneficial social or environmental impact along with financial returns, is one way to achieve this. SA is already a regional leader in impact deal flow terms and to date accounts for $4.9bn, or about 74%, of impact capital not from development finance institutions in Southern Africa. But impact flows constitute only 3% of SA’s total financial assets. An important piece of le...