Governor’s Cape seduction: tax breaks to lure investors

The lure of ten-year tax breaks is set to make St Helena a hot topic with investors in Cape Town, says a South African financial website.

The MoneyWeb report – ahead of a visit by Governor Mark Capes – says the opening of St Helena’s airport in 2016 “will open the island up for business.”

And it lists an array of incentives to pull in investors.

They include “early tax breaks, zero customs duty, corporate tax and capital gains tax for seven years on investments over £1million and below £5million.”

For even bigger investments, it goes on, the tax sweeteners would continue for ten years.

“Investments of more than £1million will attract a 50% discount on freight rates, and those bigger than £5million also qualify for a 50% discount on passenger rates,” says MoneyWeb.

It adds that St Helena has no off-putting sales or property taxes.

An event for would-be investors has been organised by Wesgro, the marketing agency for the Western Cape, to coincide with the governor’s stop-over en route to Tristan da Cunha.

The island party includes Julian Morris, who is leaving his job as the island’s head of economic development.

“The St Helena government is planning £24 million of infrastructure upgrades in the next few years in anticipation of air access,” says MoneyWeb.

“Opportunities are mainly focussed on tourism, fishing and services.

“Extensive research has shown opportunities in especially heritage and culture tours. The island’s link to Napoleon is a huge point of interest. Bird watching, gaming, fishing and diving, and to a lesser extent astronomy are other niche tourism markets targeted.

“On the fishing side, St. Helena has a 200-mile exclusive zone where it controls marine resources and tuna stocks are largely untouched.

“Fresh and frozen tuna provide opportunities as well as sports fishing, says Morris.”

The report does not mention efforts to bring a vessel to the island to enable local fishermen to exploit rich fishing around the island’s sea mounts.

But it does say that the island team will be “in serious talks with prospective hotel investors and parties interested in establishing a fish processing plant”.

The island team, including Enterprise St Helena director Rob Midwinter and councillor Lawson Henry, departed from Jamestown yesterday (7 November 2013).

Lawson will travel on to London with Dax Richards, the island’s Assistant Financial Secretary, to attend the annual Joint Ministerial Conference for overseas territories.

Read the MoneyWeb report:
www.moneyweb.co.za/moneyweb-2013-budget/airport-opens-up-opportunities-on-st-helena

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