EDITION 1 | February 2021
Impact
Empowerment
Ventures’
stakeholder
publication
INSIDETHEPAGES
Page2
Who We Are
Page3
TheTeam
Page4
Section12J
Page6
OurProjects
EnRRICHing Lives
Enhanced, Risk-controlled Returns
To make a difference in the communities in which we Invest: for Change and Hope.
Who We Are
WHAT IS IMPACT INVESTING?
All investments have consequences—not just for individual investors, but also for
communities and for the economy at large. In addition to creating financial returns
for the investor, investments can create jobs and expand the provision of goods and
services. They can have positive or negative effects on society and the environment.
Impact investing goes well beyond just avoiding harm, but also considers
Environmental, Social, and Governance (ESG) criteria - the group of standards used
by socially-conscious investors to screen investments. It aims to harness the power
of investing to improve society, by choosing and managing investments which will
have a positive impact and also avoiding harm.
Impact investing can be defined as: investments made into companies,
organizations, investment vehicles and funds with the intent to secure a measurable
positive, social, economic and environmental impact, alongside financial returns.
Investments into growing SME companies
Agricultural projects
Information Technology
Private property development, focused on
affordable housing and student accommodation
To be considered for such investment, businesses must meet
the following criteria:
• ROBUST COMMERCIAL MERIT
• APPROPRIATE AND EFFECTIVE MANAGEMENT
• MANAGEABLE RISK
• A WORTHY TRACK RECORD
We at Impact Empowerment Ventures firmly believe any economic recovery in
South Africa will come from Small and Medium-Sized Companies (SMEs). We raise
capital and invest it in high-growth, sustainable businesses, which will help to meet
the developmental needs of South Africa.
One of our primary achievements in 2019, was to come up with appropriate funding
solutions, so we could raise vitally-needed capital for the sustainable growth of
SMEs. Our company’s expertise currently centres on the most appropriate funding
model to fund the growth of SMEs: namely the Section 12J (S12J) tax incentive.
Here at Impact Empowerment Ventures, having an impact on the
communities that we operate in is our main goal.
We developed our very first e-book to convey this message and to
provide a practical overview of what we call - Redemptive Capital.
Enjoy the read!
Chris Hart
Our People
The Team
MARINDA SHEKLETON
Senior Partner -
Business Executive
RIEL PIENAAR
Human Capital
Executive – South Africa
ZETHU
NDLANGAMANDLA
Business Development
Consultant– South Africa
DAVE HUMPHREY CHIS HART
General Manager - South Africa
Executive Chairman,
Investment Strategy
BONGI LEEUW
Business Development
Consultant – South Africa
LOYISO MPONGWANA
Relationship Executive
SIFISO NXUMALO
Business Development
Consultant– South Africa
MADELEEN PIENAAR
Operations & Client Liaison Officer – Trystan Speck
South Africa
Intern
Section 12J
Explained
Step 1
Step 1 Tax payer/ S12J Investor
Step 2
Step 2 Complete Commitment
to Invest form before 26
Feb 2021
Step 3
Subscribe for share in IEV
Pty Ltd
Step 4
Step 3
Investor Receives S12J
Certificate
Step 4 Step 5
Investment placed in
Owner run SME
Step 6
Submit share certfiicate
Step 5 to SARS with your annual
tax return
Step 6 Step 7
Tax Refund received from
SARS and paid to lender
Step 8
S12J IMPACT Investment
exited after 5 years
Step 7
Step 8 FEBRUARY | IMPACT 4
Section 12J
“Creating Capital for Investing into the New Economy” as per overwhelming
need in South Africa.
Our company’s expertise focusses on the most appopriate funding model for
the achievement of SME growth and funding needed, namely Section 12J (S12J)
We have designed this appropriate funding solution that will “create capital for
sustainable growth” of SME’s.
We call it - Redemptive Capital.
Section 12J is the HOW
Advantages of IEV Section 12J
• It is super tax Friendly
• It provides additional non-financial investor benefits (REDEMPTIVE Capital)
• It improves overall portfolio out performance
• It achieves important socio-economic benefits Requirements:
• Great Treasury Initiative for the distribution of YOUR taxes
• Helps re-capitalize and Fund SMEs No Credit Checks
• You boost your entire income, after you have invested in IEV Section 12J
Features of IEV Section 12J No Collateral
• Securing Deposit of R25 000 needs to be paid before 30 June 2021. No Track Record
• If something happens to the VCC then your losses are R25 000 and your S12J
TAX Refund
• SARS does not penalize you the S12J investor if the Qualifying SME fails
• Capital Gains Tax will be charged at the end of 5 year if you choose to sell
your shares which is the only tax implication
• A S12J investment is limited to a single tax year. Investors may invest for
numerous tax years
• The initial amount of R350 000 of the taxable amount will grow after 5 years
anywhere between R600 000 - R1 Million
Requirements for Section 12J
• Minimum amount of taxable income for the year of R1.1 million Section 12J is a National
• Maximum amount for Individuals and trusts is R2.5 million Treasury-approved tax
• Maximum amount for Company investors is R5 million break, under the Income
• Have to be invested for 5 years
• May not be breach the “connect person rule” Tax Act, allowing
• Can have 2 partners to make up the R1 million for individuals investors to deduct
100% of their investment
from their taxable
income in the year of the
investment. S12J benefits
can be accessed when
investing in our approved
investment vehicle.
Our S 12J Projects
THE GOOD RABBIT STORY
“A nation who invests in
agriculture and the next
generation of farmers, invests
in its own future and safety.”
– Hennie Viljoen, Director of P349 (Pty) Ltd.
Hennie and his family have always had a heart for uplifting
rural agriculture communities. Their journey began when
they established Amos Agrimin in 1993. This is a faith-
based agricultural enterprise with the vision: Living and
Farming God’s Way.
In South Africa, commercial farmers’ knowledge, skills,
practical experience, work ethic and wealth have been
developed over generations. They possess business and
leadership skills which will be lost if they fail to pass the Hennie Viljoen and Hester Bibbey
baton to the next generation of farmers, a generation that
needs to reflect the demographic of our society.
In light of this, Hennie established GF4GF (Good
Foundations for Good Fruit) in 2011. They started a
training centre to cultivate a new generation of farmers
and leaders with skills and integrity to positively impact
rural-agriculture communities.
th
On the 17 of October 2019 a firm known as Coniglio,
which had essentially controlled the whole rabbit farming
Industry in South Africa, was liquidated. Various causes
were behind the failure, although the rabbits were not the
ones to blame.
Agri-Edu Provisions (their own small farming business) was
established in 2019 with the vision to eventually farm
rabbits on the GF4GF centres. With the support of the
rabbit farming, Hennie and his team developed a
sustainable business model which could result in real job
creation. The journey, however, started with a focus on
revitalising the industry.
“We developed a model to Not only will rabbit meat production
effectively address these support the economy, but it also
supports a healthy lifestyle. Rabbit meat
challenges and started to look is:
for investors to establish rabbit • Healthy white meat
farming on the GF4GF Centres,” • • High in protein
Low in calories
• Low in saturated fat
says Hennie. • Contains no antibiotics or growth hormones
• High in vitamin B3 and B12, phosphorus,
potassium and selenium
The process started by bringing the farmers together to The benefits of rabbit farming includes:
work out how they had been making losses, the challenges
they faced, and then getting them to take ownership of the • No greenhouse gases
current situation. They then established RASA (Rabbit • Rabbits consume little water
Association of South Africa) to draw on the expertise of the • And they consume less food per kg of meat
farmers. produced compared to other farmed meats
Our S 12J Projects
After realising that they needed funding and having
met with numerous financial institutions, Hennie
phoned Impact Empowerment Ventures’ Chris Hart
as a last resort - to seek help in funding their dream.
Chris was on holiday at the time, but nevertheless he
took the time to hear Hennie’s cause and jumped at
the opportunity to join hands with them and help
realise this project. This was seen as an ideal project
for S12J investors.
“Impact didn’t confine us to a set of norms; they took
our hands and walked this extremely difficult road
with us. Even though they also faced tribulation
caused by the pandemic, they still put their clients
first,” says Hennie.
They drafted a business plan and registered P349
(Pty) Ltd, which is the qualifying company for S12J
investment. 50% of the shares were dedicated to the
GF4GF centres.
“If you want to start a
business with no capital;
S12J is the only viable
option,” states Hennie, “it is
the perfect vehicle to get
innovative initiatives to
their end destination
regardless of the road to
travel.”
They bought the abattoir at Carletonville from the
th
Coniglio liquidator on the 15 of November 2019.
They renovated it, and they started to process the
rabbits in December 2019.
Hester Bibbey, who share a rural development vision,
joined the team to assist with marketing. It was a
tedious process to obtain all the necessary
certificates and permits, and to introduce a new
brand for RASA members’ produce.
The Good Rabbit Meat brand was established in
March 2020, and with this they entered the market
and gained first-hand experience of the registration
process, testing and compliance, as well as
packaging, traceability and the health-declaration
process.
In September last year, Good Rabbit Meat signed an
export contract with Qatar. They have also had
fruitful negotiations with large retailers and
conducted in-store campaigning. With the help of a
professional marketing team, they managed to
survive the pandemic - which is a testimony in itself.
The plan going forward is to build trust and to further
grow the industry.
Even though the industry had been unstable ,and
there were fears for its future, Hennie and his team
pursued their passion through their love of the
venture and their faith in a successful outcome.
FEBRUARY | IMPACT 7
Our S 12J Projects
• To date, they have one training centre in the Eastern
Cape, two in the Northern Cape, one in the Free
State - and they are in the process of establishing
another branch in the North West. The long-term
dream, of course, is to open abattoirs in these
regions as well - as there is only the one at the
moment.
• They aim to target local and export markets with
the rabbit meat. Work is underway to start
exporting to Zimbabwe.
• RASA, which is an inclusive producer association,
has expanded from 38 members to 98 members.
• Rabbit meat has been registered as an Agri-
commodity as part of the livestock improvement act
in 2019, which was a welcome development.
The challenge now is to align quality farmers with the
demands of the market. The team wants to create a viable
future for farmers and for the processors, and of course to
further professionalise the industry.
Impact Empowerment Ventures and P349 (Pty) Ltd are
aligned perfectly to truly make an impact on South Africa.
Share in the GOODness through a
company who envisions GOOD
training farms, GOOD farmers with
GOOD job opportunities, GOOD
abattoirs and GOOD products.
Our S 12J Projects
FIRST THINGS FIRST WITH SAFETY
“YSG removes the direct vulnerability of a guard, moving the
front-line to a remote, off-site control centre — and not the
sort that can be bypassed by James Bond using a paper
clip.” – Chris Hart
Trusting your property in the hands of your security
company doesn’t always leave you with the peace of
mind that it should. Tim Pearman, Managing Director of
YSG Security Solutions, has not only invested in
supporting safety in South Africa, but has also been a
pioneer in the development of the security industry to
provide a worry-free solution to the client.
With the implementation of the new Firearms Act, he had
the opportunity to provide training to a large armed-
response company. This ignited his interest in the
security industry. He cultivated his entrepreneurial spirit
and established a successful guarding company, which
he operated from 2003 to 2010. He sold his company to
a global security company, who introduced him to
technology advancements in the industry.
Tim founded YSG in 2016 to provide a security service in
South Africa that was affordable, yet which could provide
the very latest in security technology. He developed a
system that could prevent a crime
before it could happen –
unlike the traditional
reactive systems
provided by most
guarding
companies.
intruder, and they can immediately deploy the best
A technology- response.
based system
has a smaller More than 30% of the South African population is
window for unemployed. This leaves families vulnerable, and it
error when ultimately leads to some people opting for a life of crime
compared to merely to survive.
the services of a The YSG solution is the perfect response to the need for
vulnerable
human being - first rate security and protection. It is customised for
who can be each individual client, and the very latest technology is
deployed. YSG has a 100% success rate and its organic
intimidated,
influenced, and growth can be attributed to new clients signing up purely
corrupted. This has on the basis of word-of-mouth.
often been the case, YSG has ticked all the boxes for providing the top level of
unfortunately, in South security, with a solid track record, innovative people, low
Africa. risk and cutting-edge technology. It provides the perfect
S12J investment opportunity.
The YSG’s solution includes ‘virtual trip wires’ which use
predictive artificial intelligence. Analytics are set up in the “Anyone who knows my peace-loving, placid nature will be
areas where trespassers can be detected. Machine comforted that I am not involved in the security side of this
learning is incorporated to analyse what is happening company. What I am involved in is raising investment funds
when sensors are triggered, to define what can be to help grow the firm, both in SA and in the region. (It won’t
classified as a threat and what is not. Experienced surprise you that regional expansion is not the current
control room operators are alerted if there is an focus; there is no shortage of security challenges within SA’s
borders.)” – Chris Hart
Our S 12J Projects
ELIXIR AFRICA
Our Agri-tech Share Classes
Elixir Africa has been in the cannabis industry since
2018, with four founding partners: Muhammed
Dockrat, Farzana Varachia, Bilal Patel and Zaheerah
Bham-Ismail. Elixir Medicann has been established as a
subsidiary of Elixir Africa to move beyond the marketing
of a medicinal cannabis product into actual cannabis
cultivation and research. The use of medicinal cannabis for the treatment of
various ailments is on the rise. Meanwhile, research
Three years ago, these partners saw a niche in the in this field is continuously being done. Its potential
market to offer premium grade non-intoxicating to treat more and more ailments is expanding and
cannabidiol (CBD) products to a discerning - and the company is anticipating an even greater growth
growing - market. Elixir Africa was established and is in the health sector in the years to come.
one of the only companies to offer certified products to
the South African market which are free of Elixir Medicann’s goal of becoming the South Africa’s
tetrahydrocannabinol (THC), which is responsible for premium quality medicinal cannabis producer and
most of marijuana's psychological effects processor has started off very positively, fulfilling the
founders’ plans to develop a world-class cultivation,
By diversifying into cultivation and research, they have testing and R&D facility right here in South Africa.
not only helped to support the growing local industry,
by providing jobs and opportunities, but now can also
provide sought-after products into the international
marketplace. This helps to make South Africa a
significant contender in the CBD industry.
In order to grow Elixir Medicann’s business, a
partnership with Impact Empowerment Ventures has
been developed. Elixir Medicann was registered as a
Cannabis Qualifying Company to facilitate the
investment through section 12J.
The founders of this new venture together have
expertise in hydroponics, medicinal CBD product
development and research, sales, procurement, logistics
and training. Elixir’s cultivation, production, and research
facility will be based in Gauteng so that the founding
members can personally oversee every detail of the
project.
Every aspect of the project has been developed in
consultation with experts in the field, with input from
Chris Hart, the executive chairman of Impact Investment
Africa.
Phase 1 of the venture consists of the initial installation
of a 2 800 square metre greenhouse, which consists of
four state-of-art tunnels. Phase 2 will follow with the
establishment of a CO extraction process, and Research
2
and Development facilities.
A specialist cultivation team has been engaged to source
the best strains of the cannabis plant, to produce the
highest yields possible.
Our S 12J Projects
NGOYE VIEW
AGRICULTURE
Our Agri-tech Share Classes
Ngoye View Agriculture (NVA) in KZN is the offshoot of a
sugar farm which has been in the same family for four
generations. The new cannabis project which is being
set up there is the brainchild of the latest generation, all
of whom share a common passion, drive, motivation and
mutual interest to see the family farm diversify and
further develop.
NVA aim to establish a world-class facility for research
and development of strains and cultivation of cannabis.
After processing and extraction, organic medicinal
“As CEO, my aim is not only to develop a
leading-edge business on our family farm,
but also to grow the medicinal cannabis
industry in South Africa as a whole - by
actively networking and communicating
with other licence holders, and lobbying
alongside providers to the industry
through SANCAP (South African Network
of Cannabis Professionals)” – CEO Cate
Kirkland
cannabis and associated products will be manufactured
and supplied both locally and to the international
market.
Shares for the cultivation phase of the project are still
available via an S12J qualifying company of Impact
Empowerment Ventures. The infrastructure is ready.
The next stages will be to erect the structures and to
arrange the necessary site visits by the licensing
authorities. After this, full operations can commence.
History of the Kirkland Family
Ngoye View Farm has been in operation since 1917 and
has been run by the same family, now in its fourth
generation. Andrew Kirkland, the current landowner and
head of the family, has witnessed greater technological
advancements and agricultural changes than any of his
predecessors.
In 1913 Andrew’s Grandfather, Alfred James Kirkland,
who was a bank manager at Standard Bank ABC Branch
in West Street, Durban, bought 270 hectares of swampy,
unused land which lay 130 kilometres north of Durban.
Alfred and his wife Lena travelled with their sparse
FEBRUARY | IMPACT 11
Our S 12J Projects
NGOYE VIEW AGRICULTURE
Continued...
possessions on rough gravel tracks to this wild area, to part in the daily farming activities. Mark oversees the
build a life together. running of the family sugar farm and works closely with
the farm manager. He will be the COO of the medicinal
The farm was rife with malaria, yellow fever and other cannabis project.
tropical diseases. They battled to establish themselves in
a territory that, only a few years previously, had been a Andrew’s wife, Jennifer, who is a maths teacher, has
focal point of the Anglo-Boer War, and in earlier times worked extensively with women from the local Obanjeni
had been a stage for the Zulu Wars. They built a wattle Community. They set-up and run a project called So-
and daub hut, where today the farm workshop stands, Afreco, learning micro-business skills. They weave
for their immediate occupation. Then they immediately recycled plastic into hats, mats and bags that have been
set about building a proper home with a wraparound exported to 19 countries around the world. This resulted
veranda and a red corrugated iron roof. in tourists from across Europe travelling to the farm to
watch the project in action.
Alfred was a pioneer farmer in this region. He fell
desperately ill with yellow fever and died when Andrew’s Jenny was awarded the Nelson Mandela Community
father, Roy was only 8 years old. It was up to Andrew’s Upliftment Award and the Rotary International Gene
grandmother Lena to lay the foundations of the family’s Harris Award for Community Upliftment.
future.
Jenny’s eldest child, Cate, spent twenty years living in
Lena battled for many years in the harsh, hot and Australia where she set-up a nationally-recognised
dangerous environment. At the tender age of 14, Roy training institute and garnered many management and
had to take on the burdens of manhood, to leave his facilitation awards. On returning to South Africa, she
school in Durban, and to support his mother in tackling relocated to Cape Town with her daughter. She consults
all the difficulties and hardships of building up the farm. from there and travels to the farm as required.
Roy married the love of his life, Iris Springorum, in Another son, Patrick resides in the UK with his wife and
January 1941. He was an officer in the Umvoti Mounted two children. He works for the Investment Banking
Rifles and was called up to support Britain’s war in North Division of BNP Parabis as a Project Manager. Penelope,
Africa in August of that year. He left his new bride the youngest sibling, is a qualified teacher, has spent the
pregnant with their first child. Roy was taken prisoner at last few years working in the management of luxury
Tobruk, and spent the remainder of the war years as a resorts, wellness retreats and game lodges, and will
prisoner of war in Italy and Germany. He was relieved to oversee an eco-friendly luxury wellness retreat and
return home in 1945. multi-purpose venue with the holistic inclusion of CBD
health and beauty products, infused foods, and
After his return, Roy settled down to further expand his beverages on the farm.
farming skills and to secure milling contracts. The family
was also very active in the local community.
“Families are like branches on a tree. They might grow
Roy and Iris’ eldest son Andrew took over the in different directions, yet the roots remain as one,”
management of the farm in 1970. He handed over the Cate explains.
reins to his eldest son Mark in 2016, but he still takes
FEBRUARY | IMPACT 12
Potential Investments
FROM RATS TO FLATS
Hamelin Rat Trap
The Hamelin Rat Trap is an innovative solution for tackling South Africans
serious rat infestation crisis, which is most serious in informal settlements.
There is a need to catch rodents in large quantities, there is no shortage of
the vermin, and there is a business opportunity once they have been caught.
The traps work in a manner similar to a swing-top dustbin lid. The top of
the trap is level with the ground and when the rat walks over it, its weight
causes the door to open and the rodent to fall into a bucket below. The
bucket is placed in a hole which has been dug in the ground and which
has been filled with water -so the rat then drowns. The rodent carcasses
can be processed into a fertiliser for use in gardening and farming.
The Hamelin Rat Trap is an innovation from Entrepovate (Pty) Ltd. It can
catch large quantities of rats in an environmentally-friendly and poison-free
manner. The rats are processed into high-nutrient organic fertiliser and can
also be turned into high protein animal feed.
This multi-pronged rat-catching system is suitable for informal settlements and
townships, has the potential to create thousands of jobs in townships, and can be
used to record rat behaviour and population data.
Thathomo
The President of South Africa, Cyril Ramaphosa, has made infrastructure
development the basis of his Economic Reconstruction and Recovery Plan for the
Coronavirus-battered economy. Meanwhile, the Government’s National
Development Plan aims to increase tertiary student enrolments to 1.6 million by the
year 2030, which will result in a significant increase in the demand for student
accommodation during the next decade. The Development Bank of South Africa has
named student accommodation as one of its top priorities- in line with President
Ramaphosa’s Recovery Plan.
Thathomo is a development project involving the conversion of an office block into
student accommodation in the Johannesburg Central Business District. The building
will consist of eighty-four rooms and will have a height of six stories. The project was
due to commence in March 2021, with a phased approach to provide for a student
occupancy of 50% capacity by July 2021, with full occupancy by February 2022.
Rendani Minerals
Granite is high in quartz (about 25%), feldspar, and mica. It is widely used
for architectural facades, construction materials, ornamental stone and
monuments. This commodity is also in high demand from international
markets. Rendani Minerals was established to meet this demand. It is a
start-up granite mining company operating in the Berseba, Wonderkop,
and Bakwena ba Mokgopa areas. Rendani Minerals will extract granite
from three sites, two of which it owns and one in which it is a partner.
The Granite mining applications have been approved.
About twenty appropriately-skilled personnel will be employed, which will
enable local communities to be directly involved in their own
development.
Rendani Minerals aims to produce about 500 tons of granite per month.
A business plan has been developed, and it will to start off with the
supply of the raw material, eventually developing into an established
producer of more bespoke products, such as tombstones, by 2025.
CONTACT US
[email protected] +27 11 480 8634 www.impactinafrica.com