ESD Contribution = Equity in the Fund
Companies participating in the Futureneers B4i Empowerment (RF) model will immediately receive equity linked to projects developed and supported using their ESD contributions on a one-to-one or pooled basis. This means all Contributing Companies making ESD Contributions to the Fund will be shareholders and potentially earn future dividends, plus share in the additional equity related benefits listed below:
Larger Contributors may determine their own investment mandates
In accordance with the fund rules and availability of project funding, Contributing Companies will be able to pick the specific projects they want to support and allocate their ESD Shares to benefit from such specific projects.
For smaller contributions, funds are pooled and invested on an aggregated basis to maximise impact.
1st Right of Refusal (Black Incubator model)
In accordance with the fund rules, and as part of the empowerment model, Larger Contributing companies will also have a 1st right of refusal to acquire best performing ESD projects (the investee companies) in a manner to be agreed and negotiated with the Black Fund Managers.
The fund therefore acts as deal-flow generator and incubator of successfully black-owned businesses.
100% Tax write off on a making a minority ESD investment
In accordance with Section 12J of the Income Tax Act the investment qualifies for a 100% tax deduction. In this manner, up to 28% of the investment risk exposure is covered through a SARS incentive,
