Alec Hogg: Fastest fingers first for this 12J

During Thabo Mbeki's era, SA's cabinet boasted a core of economically literate members. Nowadays, with the exception of Cyril, Tito (above) and Ebrahim Patel, the cupboard is bare. This poses a major threat to a renewal of the successful 12J venture capital incentive scheme whose 12 years is set to end on June 30.

Also read: Alec Hogg: China is Covid-19's big winner

Even insiders in the multi-billion rand industry have no idea whether 12J will be allowed to die, or be granted a new lease of life. They say all will only be revealed in next month's Budget Speech. Given SA's desperate need to create jobs, the rational mind would anticipate an automatic renewal. But with Covid-19 having emptied the Treasury, some argue every possible tax cent must be chased down.

What makes the scheme so appealing for taxpayers is the entire investment in a qualifying 12J company is written off against taxable income in year one. When backed by low risk, innovative business models – like that of our partner Bright Light Solar – annual returns from 12Js can run well into double figures.

___STEADY_PAYWALL___