Agriculture Project Offerings

The arrangement for all projects is that IIM is the finance partner responsible for the financing, financial management, financial structuring and investor relations. The operating partners for projects are proven experts in the field with a strong established track record of success.

Agriculture

The projects considered are high-value, low volume operations that are quickly cash generative and high margin. Investment time horizon is 5 years

a. Intensive Small Livestock Farming

Focussed on Sheep, Goats and Rabbits.

b. Controlled Environment Farming

Herbs, Spices, Exotic Mushrooms, Moringa, Neem, Wormwood, Marijuana.

Download Fact Sheets

Description Downloads
Medicinal Cannabis Projections Download Fact Sheet
Rabbit Industry S12J Investment Features Download Fact Sheet

Impact Empowerment Ventures (Pty) Ltd
Registration No: 2018/012520/07 | FSP No: 49377 | VCC-0135

A. Small Livestock Qualifying Investment – Rabbit Farming

Executive summary

This investment offers the VCC investor a very healthy dividend and the opportunity for capital growth over the five-year period. Due to our investment committee’s focussed risk identification strategy, tight business controls and the use of modern technology systems, our Qualifying Investment’s success is sustainable, both medium and long-term. Most of the Investee Companies in this share class are owner managed. The investment committee of specific share class makes prudent investments in Qualifying Companies in the South African rabbit farming sector.

An investment in the Rabbit Sector offering by IEV has the opportunity to benefit from a very cash generative abattoir and rabbit farming community across the country. It has a direct effect of educating and equipping young inexperienced farmers in rural areas, many of whom are currently unemployed youth, thereby stimulating SME development/ownership and job creation in the direct community where they farm.

One objective of this investment is to capitalise on the tax benefit created by Section 12J in order to effectively facilitate the funding of the rabbit industry and complete value chain in South Africa. Export contracts are currently being negotiated. We invest in the industry together with experienced farmers with profitable businesses already, with the ability to replicate country wide.

Another objective is to fund controlled start-ups and early stage black-owned companies/farms that, after our investment has been appropriately applied, will be able to grow in turnover and enterprise value and empowerment of the management and workers, whilst the fund manager and its enterprise development teams work closely with the owners and rabbit sector/farming experts, for at least the first five years.

Section 12J Tax Incentive

Section 12J of the income tax act allows the investor to deduct the full capital amount of their investment from their income for income tax assessment purposes in the tax year the investment is made. To qualify for the incentive, the investment must be made through a SARS approved and registered Venture Capital Company (VCC). The investor must be invested for a minimum period of 5 years. The investor is liable for Capital Gains Tax on the exit of the investment. The tax act specifically allows investors to gear their S12J investment. The IIM Section 12-J offering is structured in a way that gears the investment in a way that delivers a low risk investment outcome.

Impact Investment Management and Section 12J: Structured Investing with Minimal Exposure and Risk

• Investment may be collateralized by an independent loan
• Initiation fee R20 000,00 (incl. VAT)
• Investors pay NO FEES

Suitable investors

  • Individuals (two may pair up)
  • Trusts
  • Companies and their employees

 

Disclaimer: Impact Investment Management is the contracted Fund Manager of Impact Empowerment Ventures Pty Ltd. Please consult the private placement memorandum for details of the offering

Please note that past performance may not be indicative of future results. Due to various factors such as changing market conditions, the possibility of a reduced return if a shorter time-period to exit funds can occur.

Testimonial Letter

RE: JOB OPPORTUNITIES – RABBITS

17 February 2020

Hi Chris and Dave

Thank you!  It’s an important question to answer.

Before Coniglio went down there were 110 producers linked to them.  However, during the last six months of 2019 the number dropped because of the fact that Coniglio did not pay the producers.  When Coniglio was finally liquidated on 17 October 2019, they already owed producers more than R16 million.  This hurts producers severely.

I established CORPA (Commercial Rabbit Producers Association) in September 2019.  Now we already have 80 producers signed up as members of CORPA.  There are still a few more, but they hang on to see how things develop before they start farming again.  Some did not survive the Coniglio catastrophe.  However, a few new farmers entered the rabbit industry.  The stats are still confusing, but we are working hard to get some reliable information.

Because farmers desperately need an abattoir and off-take agreements, we bought the abattoir (the only fully compliant rabbit abattoir in the country) to save the industry.  All calculations are based on the following:

  • Every 100 does create one sustainable job on grassroots level (farmworker)
  • You need at least 1 manager per farming enterprise and at least 1 manager for every 1000 does.
  • One doe produces at least 52 kids per year, that is an average of one kid per week per doe.
  • The average size of rabbit farms according to our statistics are still very small.  More commercial size farms are needed.

Buying the abattoir, we save and/or create the following jobs and or job opportunities.

  1. Abattoir direct   – 38 basic and 4 management = 42
  2. Producers – 80 members (businesses) = 100 management jobs (because some businesses have more than one manager)
  3. Farmworkers – 120 = 120 (12 000 wyfies @ 1 worker per 100 does)
  4. Marketers – 2 Fulltime = 2

So the immediate effect is that 244 direct jobs were saved.  There are a lot of indirect jobs saved as well.  Think of renovations, maintenance, etc.

In the future we may upgrade the abattoir to a high throughput abattoir (that is from slaughtering 2 000 to slaughtering 6 000 per day).

By doing that we will need 6 000 rabbits x 5 days per week = 30 000 per week.  Thus you need 30 000 does to produce 30 000 kids per week.  That will create many more sustainable jobs.

The immediate plans for the first five GF4GF Centres  (see PP attached) will create at least 35 direct job opportunities per centre = 175 sustainable jobs in total.

Secondary jobs (producing vegetables,  feedlots (sheep / pigs),   pelts, organic fertilizer, manufacturing infrastructure, maintenance, etc.) are not yet included.

Regards

Hennie

Impact Empowerment Ventures (Pty) Ltd
Registration No: 2018/012520/07 | FSP No: 49377 | VCC-0135

B. Medicinal Cannabis Qualifying Investment

The medicinal cannabis project is at its core an agricultural project with value chain enhancements. The project entails the establishment of a controlled-environment cannabis growing project on a working farm in KZN. The farming activities include the nursery, the growing/production green houses, the harvesting, drying and extraction activities. The final product will be the cannabis oils, which will be used for the preparation of consumer products.

The offtake potential includes both local and export markets. All activities will be fully compliant with both local and international regulations governing the industry.
This implies that the market for medicinal cannabis has substantial growth ahead. A key barrier to entry is the high capital cost of establishment of a growing facility but the margins and rewards are high.

Section 12J Tax Incentive

This share class (medical Cannabis) is offered via the Section 12J of the income tax act which allows the investor to deduct the full capital amount of their investment from their income for income tax assessment purposes in the tax year the investment is made. To qualify for the incentive, the investment must be made through a SARS approved and registered Venture Capital Company (VCC). The investor must be invested for a minimum period of 5 years. The investor is liable for Capital Gains Tax on the exit of the investment. The tax act specifically allows investors to gear their S12J investment. The IIM Section 12-J offering is structured in a way that gears the investment in a way that delivers a lower than most venture capital type risk-investment outcome.

Impact Investment Management and Section 12J: Structured Investing with Minimal Exposure and Risk

  • Investment may be collateralized by an independent loan
  • Initiation fee R20 000,00 (incl. VAT)
  • Investors pay NO FEES

Suitable investors

  • Individuals (two may pair up)
  • Trusts
  • Companies

 

Disclaimer: Impact Investment Management is the contracted Fund Manager of Impact Empowerment Ventures Pty Ltd. Please consult the private placement memorandum for details of the offering

Please note that past performance may not be indicative of future results. Due to various factors such as changing market conditions, the possibility of a reduced return if a shorter time-period to exit fund can occur.

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