Estate Living Magazine Develop - Issue 44 August 2019 | Page 15

I N V E S T
The lodge
Having regained title to their land, the community had to decide
how best to maximise economic opportunities from their
land, and also how best to achieve long-term sustainability. So,
acknowledging that the best use of the land was wildlife tourism,
they entered into a partnership with the private sector via Mdluli
Safari Lodge – a 12J-backed hospitality venture that officially
opens its doors in October this year.
Mdluli Safari Lodge will feature 50 luxury double air-conditioned
en-suite tents with private patios and indoor and outdoor
showers. An elevated 360-degree viewing deck atop a large
rock formation will be the perfect spot for sundowners, and for
gazing into the distance over the unspoiled bush of the Kruger.
By working closely with South African National Parks (SANParks),
Mdluli has been built to an eco-friendly, sustainable design with
a light footprint on the environment.
&
d e v e l O P
eradicated through the creation of skills and employment
opportunities’.
Returns and rewards
Mdluli is expected to create new job opportunities, and to
generate sustainable income for the Mdluli community. Also, as
one of the very few affordable luxury accommodation offerings
in the park, it’s a particularly good venture for investors.
The Lodge will be managed by Nkambeni Safari Camp, a division
of Tourvest Accommodation and Activities – South Africa’s
largest inbound tour operator. In May this year, at African Travel
Indaba 2019 in Durban, Tourvest announced that it’s investing a
meaningful amount in the Mdluli Safari Lodge project.
The total investment in the project now stands at R60 million
of which R40 million has been raised to date with the balance
under-written, so there are still opportunities for investors to take
advantage of Mdluli’s Section 12J offering.
The realisation of this multi-year project has all been made
possible with Section 12J, and the backing of The Grovest
Group, which is South Africa’s most experienced promoter in
the 12J space.
The economic potential of Section 12J
Woven into South Africa’s Income Tax Act, Section 12J enables
investors to provide much-needed capital to small-to-medium
enterprises (SMEs) while receiving an immediate tax deduction
that is effectively equal to 100% of the amount they’ve invested.
The end result is that investors in the top tax bracket can see
relief of up to 45% on their investments. In turn, their risk capital
is also substantially reduced.
Darryn Faulds | mdlulisafarilodge.co.za
In recent comments about the project, the Mdluli Community
Chief, Inkhosi MI Mdluli, said he views the project as bringing
‘stability and social cohesion to the community’ while ensuring
that ‘schools, roads and clinics shall be upgraded, and poverty
What Mdluli Safari Lodge shows is that the right private
investment vehicle coupled with land reform can unlock fresh
economic opportunities for the country. The opportunities are
particularly abundant in our country’s tourism sector, which
has been highlighted as a big area for growth by the likes of the
World Bank.
Members of the Mdluli Safari Lodge board include Nelly
Mdluli and Buyile Mdluli as non-executive directors as well as
experienced corporate veterans Malcolm Segal (non-executive
director) and Nick Dennis (non-executive chairman).
E
The community
As of February 2019, in excess of R6 billion has been ploughed
into Section 12J funds in South Africa, helping countless SMEs
get off the ground.
After carefully assessing the supply and demand of
accommodation within Kruger, the Mdluli community and
their private partners identified the affordable luxury sector as
potentially the most promising and profitable.
On the flip side, SMEs – which are the engine room for economic
growth – receive a better chance at success and, ultimately,
becoming large taxpayers in future.