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ONGOING PROJECTS:

A] MORE WORK, WATER & LIFE

The object of this project is to transform the Keurbooms River Catchment, within the Keurbooms River Corridor, back to its natural state by clearing thousands of hectares of invasive alien plants. This large-scale endeavour is bringing much needed jobs to destitute communities, securing the sole water supply of Plettenberg Bay and restoring the integrity of a wilderness river ecosystem for people, plants and animals, thereby creating more work, more water, more life!

The Garden Route catchments are a major priority within the Fynbos biome, (a World Heritage Site) for invasive alien plant control. In 2000, half the fynbos of the KeurboomsRiver catchment had been invaded by alien plants and it is projected that this infestation will increase steadily so that by 2025 the Keurbooms stream flow will be reduced by 95%!  The reality of this projection was borne out in 2010 when flow at the Keurbooms weir dropped below 300l/second and Bitou Municipality was declared a disaster area. We have a window of opportunity to clear the catchments before its too late.

A number of existing landowners have embarked on alien clearing projects in their own capacity, but they nevertheless require significant assistance to solve the problem and truly transform this area.

The project addresses the three major components of integrated catchment management: livelihoods, water security and biodiversity.

More than 500 ha of very dense black wattle, gum and pine have been cleared, to date releasing an annual amount of 850 000 cubic meters of water into the river.  One dried up stream that used to flow directly into the Keurbooms started flowing again 12 months after the project started.

Initial funds have been provided by Department Environmental Affairs Natural Resource Management, Green Trust/WWF and the Table Mountain Fund. The DEA funds were released as a result of donations made by local and private donors eighteen months ago. The project will run for a further 18 months. Thereafter, for the next 3 year phase, a further 3.6 million rand is required.   

A further R800 000.00 is required by Eden to Addo to declare this area a Nature Reserve. Not only will this protect Plettenberg Bay’s sole water source, but it will also connect the Western part of the Garden Route National Park to the Eastern part by means of a conservation corridor allowing for the free flow of wild life.
Landowners are legally bound by a contract to keep all the areas cleared free of alien vegetation once the area has been brought down to “maintenance” status and it is bound by a management plan for the next 99 years if declared a Nature Reserve.

TO CONTRIBUTE:  Deposit directly into the bank account namely

Account
Eden to Addo Corridor Initiative
Bank
Absa
Account No.
9186949260
Branch
Knysna
Branch No.
632005
Bank Address
Cnr. Main and Grey Street, Knysna, South Africa
Swift Code:
absazajj
IBAN:
632005
Reference
Name and Surname

B] BANKING BIODIVERSITY

OBJECTIVEDiagram

To create long term value for investors, mostly in wilderness and biodiversity but also financial, through the protection and restoration of land within the Eden to Addo Corridor, the most bio-diverse corridor worldwide (ref: Distinguished Professor Richard Cowling, NMMU). 

BACKGROUND

National Geographic predicts 1 million of the planets land dwelling animals and plants will be driven to extinction by 2050. The planet is estimated to have 8.5 million living species. 

Fragmentation of the landscape is the greatest cause of loss of biodiversity and its associated ecosystems and services such as water and food production, control of climate and disease, crop pollination, nutrient cycles and recreational benefits.

Natural Corridors mitigate fragmentation in the landscape and thereby reduce the rate of bio-diversity loss by allowing for free movement of animals and plants.

The Eden to Addo Vision is to to link three mega-reserves, namely the Garden Route National Park, The Baviaanskloof Mega Reserve and the Addo Elephant National Park by means of natural corridors to protect and restore the integrity of bio-diversity and eco-system functioning as well as meeting the challenges posed by climate change. The corridor is 400km in extent and stretches from Knysna in the west to Addo Elephant National Park in the east.

Currently 6.5% (7.9 million hectares) of South Africa’s land mass is formerly protected  ( Zambia 30%, Netherlands 19%). The 20 year target, as from 2010, in line with the rest of the world, is 12%. To achieve this target an additional 5.5% or 5.6 million hectares must be protected  in the next 20 years, to achieve a total of 13.5m hectares in total..  

80% of biodiversity that is critical to conserve is on private land. E2A is actively engaged in co-opting willing landowners within critical natural corridors linking protected areas, to sign stewardship agreements such as conservancies, biodiversity agreements, protected environments (PE) and Contractual Nature Reserves in co-operation with CapeNature, SANParks and East Cape Parks and Tourism Agency in terms of the National Environmental Management Protected Areas Act 2003 ( Act No 57 of 2003)

E2A has established:

•    A 40 000ha Protected Environment in the Springbokvlakte  Corridor area linking Addo Elephant National Park to Baviaanskloof World Heritage Site

•    A 580ha Contractual Nature Reserve in the Skilderkrantz Heights Corridor linking Baviaanskloof World Heritage Site to Formosa Nature Reserve.

•    A 850ha Protected Environment  in the Robberg Coastal Corridor linking the Garden Route National Park to Robberg Nature Reserve, 1st phase

E2A is in the process of establishing:

•    A 7 800ha Contractual Nature Reserve in the Skilderkrantz Heights Corridor,  linking Baviaanskloof World Heritage Site to Formosa Nature Reserve .  

•    A 200ha Protected Environment  in the Robberg Coastal Corridor linking the Garden Route National Park to Robberg Nature Reserve, 2nd phase

•    The Keurbooms River Corridor Narure Reserve connecting the Western part of the Garden Route National Park to the Eatern section, namely the Tsitsikamma National Park

The total area E2A has or is facilitating the conservation thereof is 50 000ha in extent, a significant contribution to the national 20 year target.

You can contribute to and at the same time enjoy banking biodiversity by investing in one of the land parcels within the corridor areas.

HOW WE AIM TO ACHIEVE THE OBJECTIVE

We seek to thoroughly research and identify land rich in biodiversity where landowners are willing to enter into contractual nature reserve agreements thereby creating a system of protected properties linking formally Protected Areas forming a natural corridor for the effective movement of all species. Within the corridors, land parcels not yet declared nature reserves,  may become available for sale in which case we will offer them to investors. We will negotiate with conservation agencies on behalf of the investor to have the property declared a nature reserve and  prepare management plans, which the investor then stewards. 

SUITABLE FOR INVESTORS WHO

•    have an interest in wilderness, conservation and biodiversity

•    are prepared to declare the property purchased  a nature reserve

•    are prepared to manage the land as set out in the management plan associated with the nature reserve

•    seek exposure to long term capital growth, as  biodiversity is restored

•    are comfortable with fluctuations in property prices in the short and medium term

•    have an investment horizon of 10 years or more

•    have an annual taxable income of 3 million or more

EXAMPLE OF A PROPERTY AVAILABLE FOR INVESTMENT

Size:                   Plus minus 1046ha made up of 1 title deed. 

Description:         Takamma is a valley in the mountains, of pristine fynbos and bordered on two sides by the Soetkraal area of the Garden Route National Park.  

Rainfall / Water:   Annual rainfall 788mm spread all year round. The temperatures are highest on average in February, at around 20.5°C. The lowest month is July when the average temperature is 12.4°C. 

Infrastructure:     1 Homestead, 2 cabins, shed – off the grid with solar panels. 

Biodiversity:         1.This property is a critical link to reinforce the Keurbooms River Corridor.

                         2.Species that will benefit from the completion of the corridor and large scale ecological processes include leopard (severely threatened) and fish Eagle amongst many others

    

Asking Price:    R 3728.00 per Ha

TAX INCENTIVES

Article I.    Income Tax Act, 1962 (Act 58 of 1962)

Section 1.01    Chapter II: The Taxes

Section 1.02    Part I: Normal Tax

37D. Allowance in respect of land conservation in respect of nature reserves or national parks

1]For the purposes of this section, ‘declared land’ means—land owned by a person and that is declared a national park or nature reserve in terms of an agreement entered into with that person under section 20 or 23 of the National Environmental Management: Protected Areas Act, 2003 (Act No. 57 of 2003); and an endorsement is effected to the title deed of that land that reflects the declaration contemplated in paragraph (a) and has a duration of at least 99 years.

2.]There must be allowed to be deducted from the income of any person in respect of declared land, in the year of assessment during which that land becomes declared land and in each subsequent year of assessment, an amount equal to four per cent of— 

    (a)       the expenditure incurred in respect of—

                (i)  the acquisition of the declared land; and

                (ii) improvements effected to the declared land (other than borrowing or finance costs if that expenditure is not less than the market value or municipal value of that declared land; or

    (b)        an amount determined in accordance with the formula:

 

            A = B + (C × D) 

            in which formula—

‘A’ represents the amount to be determined;

‘B’ represents the cost of acquisition of the declared land and of any improvements to that land;

‘C’ represents the amount of a capital gain (if any), that would have been determined in terms of the Eighth Schedule had the declared land been disposed of for an amount equal to the lower of the market value or municipal value of that land on the date of the agreement; and

‘D’ represents 66,6 per cent in the case of a natural person or special trust or 33,3 per cent in any other case, if the market value of the declared land or municipal value of that declared land exceeds the expenditure contemplated in paragraph (a).

3.]If a person retains a right of use of the declared land, the deduction to be allowed in terms of this section must be limited to an amount that bears the amount determined as contemplated in subsection (2) the same ratio as the market value of the declared land subject to the right of use bears to the market value of the declared land had that declared land not been subject to that right use.

4.]The deductions which may be allowed in terms of this section in respect of declared land must not in aggregate exceed the expenditure incurred as referred to in subsection (2)(a) or the amount referred to in symbol ‘A’ under subsection (2)(b), as the case may be.

5.]If the agreement in respect of which the land that becomes declared land is terminated by the person with which the agreement is entered into, an amount equal to the aggregate of the deductions allowed in terms of this section in the five years of assessment preceding the termination must be included in the income of that person in the year of assessment that the agreement is terminated.

[Section 37D inserted by section 53(1) of Act No. 43 of 2014]

[Date of commencement: 1 March 2015]

IN SUMMARY

An investment in biodiversity, banking it for future generations, whilst retaining ownership of the land, restoring it and increasing its value  with associated tax benefits.

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