News release from SAVCA and AVCA 18 June 2013 AVCA and SAVCA sign Memorandum of Understanding Private equity and venture capital associations formalise collaboration over training, networking and research projects for Africa London and Johannesburg, Tuesday 18th June 2013: The African Venture Capital Association (AVCA) and the South African Venture Capital Association (SAVCA) today announced that they have formalised a partnership for the further promotion of private equity and venture capital in Africa. Following approval from their respective Boards, which are comprised of industry leading experts, AVCA and SAVCA will be collaborating to provide additional services to their members and leaders, in pursuit of attracting more global and local capital to Africa. The partnership will include initiatives across a range of activities, including training, conferences, networking and information-sharing events, investor promotion events and research surveys. Specifically, the associations will collaborate in the development and structuring of training programmes targeted at regulators, investors, pension fund trustees and current and prospective members in the private equity industry to encourage the implementation of industry best practice. Additional plans include the creation of investor tours to support members’ business development goals and research designed to better map the rapidly evolving industry and to provide independent data to aid fundraising. Erika van der Merwe, Chief Executive Officer at SAVCA said, “There is significant value in the combination of AVCA’s regional and global reach, with SAVCA’s established presence in South Africa and its role in the local regulatory landscape. We are delighted to be working even more closely with the AVCA team in our mutual goal of promoting our asset class in Africa.” Commenting on the formalised partnership, Michelle Kathryn Essomé, Chief Executive of AVCA said, “Thriving and active . . .
Are you a hopeful entrepreneur? Do you have an innovative idea you would like to see flourish into a business or do you have a new business that needs guidance to grow to the next level? Do you need help pitching your business to potential investors or bank managers? If you answered yes to any of these questions, ENGEN Pitch & Polish is the solution for you. You are among the solution to job creation in South Africa as entrepreneurs create employment, drive and shape innovation and contribute to productivity. The world is looking at South Africa to step up to the challenge so Engen Petroleum Ltd has partnered with business incubator, Raizcorp, and national media partner SAfm to make it happen! ENGEN Pitch & Polish is a FREE workshop and competition held in eight cities across South Africa. Round 1 winners go through to Round 2, those winners along with the winner from the SAfm Wild Card go to the semi-final, and the winners compete at the a glitzy final event held in Johannesburg in September 2013. These ENGEN Pitch & Polish events intend to unearth the entrepreneurial talent and innovation that is believed to be in abundance within South Africa. The ENGEN Pitch & Polish programme is designed to give you the skills you will need to pitch your business or idea effectively to potential investors, while learning valuable business lessons. Steps to be part of the free ENGEN Pitch & Polish programme: 1. Decide whether you would like to register as a delegate or contestant (delegates and contestants participate in the workshop throughout the day but only contestants compete by pitching their business to the delegates who are encouraged to role-play as investors and bank managers) 2. Choose the city closest to you where an event will be held alternatively follow the SAfm Wild Card round in August to pitch on-air 3. Register online at www.pitchandpolish.com or sms PITCH and your NAME and CITY to 45982 (charged at R1.50 an sms) or email . . .
Hirsch’s Fourways in association with The Businesswomen’s Association of South Africa will be hosting a business networking evening aimed at inspiring business women in all sectors to achieve great success. Business Woman of the Year 2012 (Entrepreneur) , Margaret Hirsch, and advisor to CEO’s of major corporations around the world, John Beyers McDermott will inspire the audience by sharing ideas and information. The masked (everyone is invited to wear a mask to add the fun of the evening) business networking evening will inspire women in the business to unmask their business potential by focussing on the ability to sell themselves in the business world. The evening also creates the opportunity for like-minded individuals to network and grow their sphere of influence and business connections. Margaret Hirsch, along with her husband, Allan Hirsch started a humble business repairing fridges and washing machines back in 1979. Today the business – Hirsch’s Homestores - has reached the R1 Billion turn-over mark. Through passion, dedication and hard work Margaret built and grew the family business with a clear mission of having happy, satisfied customers that return often. Her motivation and drive has inspired thousands of women around the country and she is a living testimony that anything is possible if you focus and strive to make your dreams come true. John Beyers McDermott assists business people to create a blue print for their company’s that encourage staff to actively participate in the growth and prosperity of the business. “A masked event is the perfect opportunity for women to dress up and enjoy the glitz and glamour organisers have prepared for the evening. There is a prize for the most creative mask along with loads of other spot prizes also to be won. The evening is free to attend. Seats are limited and booking is essential” commented event organiser, Warren Pearce Contact Details: Warren Pearce, Hirsch’s PRO, Cell no: 084 513 0911, email: . . .
You can’t keep a good man down, Jimmy Tau turns over a new Leaf in Business Former Orlando Pirates and Kaizer Chiefs skipper Jimmy Tau, who has recently severed ties with Naturena based glamour boys outfit, is not showing any signs of slowing down. Despite Tau having made a miraculous return to the game, after a horrendous ankle injury in the previous season, he will not be part of the Kaizer Chiefs championship defending campaign for the 2013/14 season. That type of news would put many people down but not Jimmy, the eternal optimist. It all makes sense why he was afforded the responsibility to lead both Soweto Giants teams as the captain. The IMM educated Tau is returning triumphantly to Kimberly. Tau will be returning to his home town and the Northern Cape to launch his new business venture. Tau is not your typical soccer star; he is a role model and a businessman, whilst all the media are abuzz about where he will be playing in the new season, Jimmy Tau is powering ahead on Friday the 14th He will be launching his first Bataung Memorial Tombstones store at No.4 Chapel Road, Kimberly. He will not only be launching his store but announcing his appointment as the Bataung Regional Head for Northern Cape Province. Jimmy Tau said “This will be my proudest moment because; through this business I will be able to make a small contribution by creating a few jobs for people of Kimberly”. He added that he was grateful to all the people that have supported his careers both Soccer and business and he will make them proud. It’s not hard to see why Jimmy Tau is such an icon in our soccer but also in society, Tau regularly gives back to his community and recently donated a tombstone to a Chiefs fan that had recently passed on in tragic circumstances. End- 275 words • Details of Event: Number 4 Chapel Road, Kimberly - Time: 12:00 • For interviews please contact Jimmy Tau on 072 260 2297 or Lebohang Khitsane (CEO of Bataung) 083 522 1931 • Agency : Inventors . . .
This week, our Property Poser experts deal with an oft-repeated problem regarding the management of a sectional title complex and the extent of a chairperson's powers. A reader who lives in such a complex would like to know whether the chairperson of a body corporate may appoint a new trustee to the board without consulting the other owners or trustees. According to Schalk van der Merwe from Rawson Properties Helderberg in Cape Town, a Sectional Title Scheme is controlled and managed by a body corporate and as such it is responsible for the control, administration and management of the common property for the benefit of all owners. "The trustees are people who are appointed to look after the finances and running of the complex on behalf of the body corporate and are appointed by the owners at the annual general meeting." Van der Merwe says the trustees in turn appoint a chairperson at their first meeting after the AGM. "This means that a chairperson is ultimately merely one of the trustees and as such is trusted to act honestly and in the interests of the body corporate." In answering the reader's question, Van der Merwe says it is important to consider how trustees are elected and what happens should they leave office during their elected term. "Trustees are elected at the first general meeting and hold office until the AGM, at which time they stand down but are eligible for re-election." Thereafter, election of trustees takes place at each subsequent AGM and the trustees may fill any vacancies that might occur in the interim, says Van der Merwe. "This is usually done by invitation. Any trustee appointed in this manner is also expected to hold office until the next AGM, when he or she would stand down but be available for re-election." During the absence of a trustee, or if a trustee is unable to act as such, the remaining trustees may appoint another person, owner or otherwise, to the position, says Sean Radue of Radue Attorneys in . . .
Once best known for corporate investing, private equity firms are now ploughing money into African infrastructure. Erika van der Merwe, CEO of the South African Venture Capital and Private Equity Association (SAVCA) said: “Infrastructure gives private equity investors access to the strong African growth story, an exceptional theme in a structurally low-growth world.” Buying exposure to infrastructural assets through private equity provides investors exposure to an asset class that is not easily found elsewhere. “There are very few listed alternatives,” added van der Merwe. “There is limited capacity in the listed market and even in the bond market for gaining such exposure to infrastructure.” Big US private equity players like Blackstone, Apollo, KKR and Carlyle have recently invested in Africa with Blackstone taking a stake in a major dam construction project in Uganda. The bulk of foreign direct investment to be devoted to Africa over the next ten years is expected to be in infrastructure and related assets and industries. The most significant constraints to African growth are the lack of energy and transport & logistics infrastructure. Emile du Toit, SAVCA Chairman said: “None of the growth that is projected for the region will materialise without a major rollout of infrastructure, which private equity is now helping to fund. “The multiplier effects created by infrastructural investments are powerful tools for uplifting people and growing economies – and make infrastructure-focused private equity funds an ideal vehicle for fulfilling an impact investing mandate.” van der Merwe added that all development finance institutions and many pension funds now are focused on responsible investing and are looking to modify their allocations to ensure that these mandates, which extend to environmental, social and governance criteria, are fulfilled. Because of the medium- to long-term nature of their investments, infrastructure funds – and private . . .
South Africa renegotiates double tax agreement with Mauritius By Ernest Mazansky, Tax Director at Werksmans Attorneys The much-anticipated renegotiated double tax treaty with Mauritius was recently signed and disclosed to the public. The new treaty, which is expected to come into effect in 2015, will impact several existing tax structures. Worth noting is the following: · The treaty tie-breaker for companies with dual residence will no longer be the company’s place of effective management (POEM). Rather, the company’s treaty residence will be determined by mutual agreement between the South African and Mauritian Revenue Authorities (MAP). By doing this, the certainty of a legislated provision is being substituted for the uncertainty of a negotiation between Revenue Authorities and in which the taxpayer will play no direct part. The dispute can also not be determined by an independent court, which is currently the case. Under the new treaty, if the two Revenue Authorities cannot reach consensus, the treaty simply ceases to apply to the company concerned. This is hardly acceptable. At the very least, the treaty should have bound the Revenue Authorities to submit themselves to a binding arbitration process (something which is provided for in the Organisation for Economic Co-operation and Development (OECD) rules). · Companies which are incorporated in Mauritius and which have structured their affairs properly so that they truly have their effective management in Mauritius, or at least not in South Africa, would not be impacted by the new treaty. By not having their POEM in South Africa, they would not be dual residents and the question for dispute/mutual agreement simply does not arise. · For these companies (incorporated in Mauritius), the challenge is to ensure that there is no effective management in South Africa, and often this is more easily said than done, which is why so many Mauritian structures are at risk. But then, they were always at risk, . . .
The Minister of Trade and Industries, Dr Rob Davies, has called for public comments on the Draft Lotteries Amendment Bill by 25 June 2013. “The Draft Lotteries Amendment Bill primarily aims at ensuring the more effective functioning of the National Lotteries Board and the application and distribution and adjudication of grants (through the establishment of a specified distributing agency) under the Lotteries Act,” explains Leana Engelbrecht, Associate in the Competition and Regulatory Practice at Cliffe Dekker Hofmeyr. Engelbrecht explains that, in particular, “the Draft Lotteries Amendment Bill aims to delineate which persons are entitled to act as members of the National Lotteries Board by, for example, listing those persons that are disqualified to act as members of the National Lotteries Board and allowing the Minister to terminate the membership of a member of the National Lotteries Board should such a member fail to attend two meetings of the National Lotteries Board consecutively, without prior notification and approval of such absence. The functions of the National Lotteries Board are also greatly expanded upon by broadening the National Lotteries Boards' functions in respect of the application, research, consideration, granting and appeal of grants. “Interestingly (particularly in the context of the current licence holder's five year licence expiring in 2014), the Draft Lotteries Amendment Bill allows for the Minister to appoint and authorise an Organ of State to conduct the National Lottery for a period of not exceeding eight years provided that there are justifiable grounds not to issue a licence as conventionally allowed for,” Engelbrecht adds. Ends URL: http://www.cliffedekkerhofmeyr.com Twitter: @DLACDH Facebook: https://www.facebook.com/DLACDH YouTube: Author: Angela Graham from Cliffe Dekker Hofmeyr. Originally distributed by MyPR.co.za. No of Images Uploaded: None To gain access to None image/s please Like, Tweet or +1 . . .
Cliffe Dekker Hofmeyr acted for the Sasol Pension Fund in drafting several agreements relating to the development of the new Sasol office building, currently under development in Sandton. Attie Pretorius, Director and National Practice Head, Lucia Erasmus, Director and Andrew Seaber, Senior Associate, Real Estate practice, were part of the legal team that advised on this deal, considered to be one of the biggest property deals to be concluded in Sandton to-date. The building is expected to be the largest, new single-tenanted office building to be developed in South Africa in recent years. It was designed by Paragon Architects, is ten storeys high and aims to achieve a five star green environmental rating. The Sasol Pension Fund and developer Alchemy Properties are jointly developing the office building in Katherine Street in Sandton. “We were delighted to have been part of the team working on drafting the agreements for this new office development in our city, which is set to change the Sandton skyline forever and hopefully spur the development of a new business node that will encourage pedestrian safety and green living,” adds Pretorius. ends URL: http://www.cliffedekkerhofmeyr.com Twitter: @DLACDH Facebook: https://www.facebook.com/DLACDH YouTube: Author: Angela Graham from Cliffe Dekker Hofmeyr. Originally distributed by MyPR.co.za. . . .
Registration has opened for the third African Creative Economy Conference (ACEC), which is expected to attract some 400 delegates (including visitors from at least 40 African countries) to Cape Town, South Africa from 6-9 October this year. The Conference should appeal to a wide audience, including creative practitioners, academics, entrepreneurs, policy-makers, brand strategists, corporate managers and art administrators. With research revealing that Africa’s share of the global creative economy is less than 1%, the Conference aims to focus attention not only on the continent’s creative industries as economic drivers; it will also highlight their potential contribution to the eradication of poverty and underpinning democracy and human rights. The event takes place under the auspices of Arterial Network (a network of individuals, organisations, donors, companies and institutions engaged in the African creative and cultural sector). “Previous ACECs have proven to be instrumental in creating markets and raising the profile of African cultural goods and services within Africa and beyond,” said Korkor Amarteifio, Chairperson of Arterial Network. “We intend to make this our largest gathering to date. It will set a benchmark in terms of the quality of the input and the range of activities that will form part of the programme.” Arterial Network Secretary General Peter Rorvik added: “Delegates will be well-positioned to explore the state of the creative industries within the broader political and economic context of Africa and to examine their huge potential to create jobs and help the sustainable development of the continent.” The bid for the Conference was submitted by the Cape Craft & Design Institute (CCDI), as the primary implementing agency, assisted by the Conference Bureau of Wesgro, the Western Cape’s investment and trade promotion agency. CCDI Executive Director Erica Elk said: “With the support of the City of Cape Town, planning is well . . .