Government's plan to create a fund for startups

How else are government employee offspring going to gain employment?
 
Peon said:
I assume gov will have a selection criteria?
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Yes. No local whites (you are fncked), no coloreds. foreigners yes. Chinese yes. all funds to be "controlled" by BEE partners and ANC. Most others to be considered "undesirables". No Merit and University or Professsors will be considred at all. Jus be black
 
Since when do they know how to create anything. They only know how to Steal & Destroy everything they out their hands on.
 
So between the IDC and the PIC, there literally is no funding for start-ups.

This is nothing but a power grab by a criminal minister. My first job was at a startup that was partially funded by the IDC.

If they really wanted more start ups they would do the following:
1) Get rid of onorous requirements like AA/BEE.
2) Loosen the labour law to be primarily contract enforced rather than law enforced.
3) Get rid of the capital gains tax that makes it really expensive to invest in anything in South Africa.
 
Some context:

The The Universal Service and Access Fund (USAF) and Universal Service and Access Agency of South Africa (USAASA) have been a complete failure - where are the millions of rand spent on set-top boxes?
Google the DTT migration and set-top boxes - both complete failures.

It's been non-stop looting - by Stella Ndabeni-Abraham's husband.
IOL: Stella Ndabeni’s husband implicated in Usaasa theft

Now that they've been exposed, they want to create a bigger fund - paid for by consumers to allow for bigger scale looting.

#VoetsekStella - in-case you forget who we dealing with - here are some classy photos:
1601017170281.png

Here is a free tip "REDUCE REGULATION, REDUCE TAXES, REDUCE FEES, GET RID OF BEE" to liberate telecommunications in ZA.

Please reduce Wayleave costs, tell, CoJ to stop their VumaCam fight, tell Cell Networks to stop short period data expiry, etc.

#VoetsekANC
 
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Alternative title:
Government's plan to create a new revenue stream for Corruption Inc.

Also a "fund" for black startups. Let's not pretend whitey will be allowed to benefit.
 
How about one of projects Yekani.
After initial report that Stella's husband had his fingers in its failure it was denied.

Nevertheless it was one or those investments that was guaranteed to fail unless supported by government orders which again would be paying few times more than actual cost of tablets/phones.
But at least there was a Bentley. (it is interesting to note that ministers hubby was seeking for government finance for similar project, at the end of the article).

So although idea is admirable I'm afraid that will become another failed project used and abused by people in power.
 
Peon said:
I assume gov will have a selection criteria?
Click to expand...

That is a given, and,

Put simply, the government want to partner with private companies to invest in local startups and subsequently attract international investment to the country.
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they are likely to partner by policy and help these with keeping their scorecards green in return.

This, however,

“A public-private partnership, to establish seed funding for digital tech start-ups located at tech hubs and digital incubators, will be investigated and created, within the broader national system of innovation.”
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gives me the impression that the state wants some ownership, a legal right to intervene and to give these entities priority procurement rights. I see abuse, yes.

I have once said that the government must look into a consortium to be enable such as endeavour which I believe would be the more appropriate practice. Establish a transparent democratic council with members.

Seeing this,

“It is, therefore, important to partner with the private sector to encourage funding arrangements that will support and encourage the transition of tech hub innovations into commercial production where they will attract independent investment,” it states.
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it isn't a good opinion in my view to have the state as a partner where a primary goal is to attract independent investment. The state would want their share, whether it through some reward driven model or even additional taxes. As a layman reader, it seems to me that the government is exploring revenue models.
 
konfab said:
So between the IDC and the PIC, there literally is no funding for start-ups.

This is nothing but a power grab by a criminal minister. My first job was at a startup that was partially funded by the IDC.

If they really wanted more start ups they would do the following:
1) Get rid of onorous requirements like AA/BEE.
2) Loosen the labour law to be primarily contract enforced rather than law enforced.
3) Get rid of the capital gains tax that makes it really expensive to invest in anything in South Africa.
Click to expand...

100%, plus I would add the following:

1) Lower the corporate income tax rate that startups must pay to 20% for the first 3 - 5 years of their existence, our existing rate of 28% is far too high by world standards.
2) Increase the compulsory VAT registration threshold to R2 million or higher, the current threshold of R1 million is far too low. Many small businesses only sell to the public (who can't claim back) and only use suppliers who are themselves not VAT registered (which means the business can't claim any VAT back), which unnecessarily punishes businesses that are forced into the VAT system.
3) Decrease the dividends withholding tax to 10% or lower to reward investors for taking the risk
4) Get rid of the ridiculous foreign exchange control regulations that make it so hard to do business internationally
 
deweyzeph said:
100%, plus I would add the following:

1) Lower the corporate income tax rate that startups must pay to 20% for the first 3 - 5 years of their existence, our existing rate of 28% is far too high by world standards.
2) Increase the compulsory VAT registration threshold to R2 million or higher, the current threshold of R1 million is far too low. Many small businesses only sell to the public (who can't claim back) and only use suppliers who are themselves not VAT registered (which means the business can't claim any VAT back), which unnecessarily punishes businesses that are forced into the VAT system.
3) Decrease the dividends withholding tax to 10% or lower to reward investors for taking the risk
4) Get rid of the ridiculous foreign exchange control regulations that make it so hard to do business internationally
Click to expand...
Remove DWT altogether. That money has already been taxed.
 
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