Impact Empowerment Ventures

Impact Empowerment Ventures (IEV) is part of the Impact Investment Group. It is a Venture Capital Company (VCC), which was set up to raise capital via Section 12J of the South African Income Tax Act. IEV also provides oversight for the various projects for which finance was raised.

Impact Empowerment Ventures (Pty) Ltd (IEV) is an authorised financial services provider and an approved venture capital company (VCC) that provides equity finance to pre-approved, early-stage owner-managed businesses. These underlying investments and projects offer the VCC investor the opportunity for capital growth over a minimum of five years.
The investment committee has a focused risk identification and mitigation strategy and seeks wherever appropriate to implement the most up to date technology within the qualifying operating companies to ensure positive investment outcomes that are sustainable, both medium and long-term.
IEV was initially established to capitalize on the income tax deduction against an Investor’s taxable income under Section 12J of the Income Tax Act. This deduction created an attractive incentive for investing in IEV as an approved VCC, and effectively provided a risk-free portion of the investment in early-stage and start-up businesses.
An investment in the specific share class offered by IEV allows an investor to benefit from venture capital type investments across the country. IEV has made twenty-two investments into South African SMEs since its inception.

Another feature of IEV’s funding mechanism is to fund “controlled start-ups” and early-stage black-owned companies, farms and projects, that after our investment has been appropriately applied, will be able to grow in turnover and enterprise value by the empowerment of the management and workers alike. This can be achieved by the fund manager, IEV and its enterprise development teams working closely with the owners of the SME for at least the first five years.
All of our projects aim to create jobs and career paths that lead to SME ownership and that stimulate economic growth to aid in transforming the employment landscape in Southern Africa, and move poor people, into the middle class in one generation.
IEV’s unique EnRRICH investment strategy gives investors practical opportunities to impact their world while earning a very favourable return. We aim to return the Investor’s Capital (net of capital gains tax) at the end of the Investment Period, with a controlled exit for the investor after the fifth year, if they so choose. [Enhanced Risk-controlled Return Investment for Change and Hope]
The Board and Investment Committee are composed of experienced business leaders, corporate governance leaders, as well as industry experts.
With a strong focus on risk mitigation and a steady pipeline of potential new investments, IEV is well placed to provide an attractive risk-adjusted return to both its existing S12J and future venture capital investors.

The Company Overview

Type of investment

Venture Capital/Private Equity investment.

Sectors currently invested in

Student Accommodation, Education, Affordable Housing, Security, Clean Energy, Various Technology companies, Agricultural and Manufacturing projects.

Return objectives

We aim to return the Investor’s Initial Capital plus an expected rate of return between 10% and 15% per annum, depending on the sector the investee company operates in.


Dividends are dependent on the investee company’s profitability and performance over the first five years.


Minimum 5 years

Liquidity profile of shares

Unlisted private equity/Venture Capital

Total funds currently under management

R850 million

Under S12J - Tax benefit

100% of the investment amount was deductible from the Investor’s income in the year in which the investment was made.

Our Investee Companies

Investment Strategy

We invest in companies –

  • mainly in the SME, Security, Education, Medical, Student Accommodation, Agriculture, Mining, Manufacturing and Tourism sectors
  • where operational risk can be mitigated through the appropriate application of technology and the Enterprise Development Team’s oversight
  • that focus on early-stage cash generation (where possible)
  • that implement the latest (appropriate) technologies, which mitigate operational risks and result in controlled
    investment outcomes
  • that align with the Impact Investment Group’s unique EnRRICH Formula, ensuring we meet our socio-economic impact
    and measurement requirements.

True Impact and sustainability of the Investment

  • Investee Companies benefit from access to the various operating partners and the Fund Manager’s industry experience, network of stakeholders and intellectual capital.
  • Investee Companies establish and implement systems and procedures that will assist them to operate in a sustainable manner
  • The IEV share class operators aim to create many direct, locally sourced, permanent employment opportunities, of which many will be new SME owners in time to come. We seek to open up opportunities for vulnerable members of the communities in which we operate such as our youth, women, the unemployed and single mothers.
  • Comprehensive business skills development programmes are encouraged implemented on an ongoing basis where possible.
  • Financial literacy training will form the basis of employee wellness programmes.
  • Additional employment will be created through specific microeconomic multipliers in that region.
  • All staff salaries are based on performance and package aim to meet or improve on industry standards.
  • A goal of each project is to create centres of excellence
  • Ongoing research is encouraged as part of each project’s business plan.
  • Employee career path planning is encouraged on all levels and supported by experienced human capital professionals
  • Employee benefits are carefully constructed to meet unique African and cultural needs.

Important Disclosures and Governing law

The Company is governed by the laws of the Republic of South Africa. The main legislation applicable is listed below. Please note that there may be other applicable legislation not listed and that the legislation listed may be amended or replaced, from time to time.
• Income Tax Act 58 of 1962
• Companies Act 71 of 2008
• Financial Intelligence Centre Act 38 of 2001
• Financial Advisory and Intermediary Services Act 37 of 2002
• Protection of Personal Information Act 4 of 2013
• U.S. Foreign Account Tax Compliance Act (FATCA)
• CRS Regulations issued under the Tax Administration Act 28 of 2011 and any directives, notices and practice notes
issued in terms of this legislation.
The Company does not fall within the ambit of the Collective Investment Schemes Control Act 45 of 2002.