As Covid-19 widens our fiscal deficit even further, what role should and could incentives such as Section 12J play in supporting SMEs through this crisis, and in the recovery phase?
The role of this incentive, as well as whether it will be extended, is being asked ahead of the budget speech and expected news on the sunset clause, due to take effect on June 30. The industry is lobbying hard for an extension because managers make fees on the underlying assets under management. But there have also been eyebrows raised as some managers continue to raise funds while existing funds remain undeployed.
Michael Avery hosted Darryn Faulds, MeTTa Capital fund manager; Anil Govind, executive director of Innovate Alternative Assets & Solutions; and Dino Zuccollo, chair of 12J Association of SA.