In a recent report by BusinessTech, it was noted that while the global Covid-19 pandemic has stopped international travel, it has not dampened the plans of South Africans planning to leave the country.
It is known that most of the people planning to emigrate from South Africa are skilled and represent a broad range of demographics.
The publication stated: “that the most popular reasons given for emigrating include political instability and the risk of expropriation without compensation, which could see land taken away from residents”.
The widespread looting over the past two weeks has also contributed to a sharp increase in emigration stats. The effect of the looting and riots on the exchange rate and investor sentiment have further increased the desire of skilled workers to leave South Africa (also known as the ‘brain drain’). The impact of this situation on the tax base is enormous.
Owner of Cape-based SuperTech Yachts, Chris Engelbrecht, recognizing that the brain drain will more than likely gain momentum in the short to medium term, realized that for South Africans there was a global investment opportunity and investment that could afford citizens the opportunity to work, live abroad and earn whilst doing so.
The SuperTech Yachts proposition is not necessarily new, but certainly is an attractive one for the sea-loving sailing fraternity looking to emigrate to Mauritius, as the company offers shared ownership in its yachts and will help investors obtain an occupation permit on the island.
"It’s easier than one thinks to live in Mauritius and earn dollars,” stated Engelbrecht. “Given the current exchange rate and the likelihood of further depreciation due to South Africa’s massive debt burden, the time is ripe for savvy investors to consider their options.
“Mauritius provides numerous benefits, not least of all the climate and with shared ownership in the company and yachts, and great tax advantages amongst others, we believe we have created a very attractive and credible investment opportunity.”
How it works:
Investors own shares in a Yacht, shares in a business, and an occupation permit as an investor into Mauritius. All for USD 70,000, which includes:
- 3% shares in the Mauritius-based business. SuperTech Yachts is planning and licensed to complete one to two custom-build yachts per year
- 3% shares, giving part ownership in a completed Leeuwin 52 ft power yacht worth $1,6m that is ready to go. Additionally, there will be income from chartering out this yacht 20 weeks of the year (Mauritius receives over 1.3million tourists per annum).
- 7 days per year staying on board and use of the yacht
- Occupation permit to live in Mauritius for 10 years
- Once-off transfer for 2 persons (sharing) on the yacht from South Africa to Mauritius included.
Getting Underway
SuperTech Yachts have already set up a business and premises in Mauritius to facilitate the planned investment strategy. Explaining the company’s vision, Englebrecht said: "To start the return on investment, we have arranged to initiate our production of the first Leeuwin 42 Sailing Catamaran right here in SA in our existing factory. Should the travel ban not be lifted by the time we are ready with the production of the actual hull, we will continue with completion in South Africa, as if it is a first Mauritius build yacht.”
“In other words, no more waiting or unforeseen delays on production. We are ready to start immediately. The relocation to Mauritius will then happen much faster than originally anticipated,” he said.
Further elucidating the advantages of being based in Mauritius for the yacht building business, Engelbrecht stated that an export company in Mauritius currently pays only 3% corporate tax, with a steady economic outlook. Whereas the South African equivalent prevailing company tax rate is 28% PLUS a 25% dividend tax, and an unknown economic outlook. Mauritius’s low tax rate therefore makes it an ideal environment as SuperTech Yachts, like other recognized boat builders, operate on low turnover but high-profit margin.
With only 25 investment slots available, the berths are limited and will be awarded on a first come first serve basis to qualifying investors.
BUSINESS REPORT