Sustainable Landscape Finance Coalition Innovation Hub Finance Solution Incubator: BMA Tax Incentive Investigation| Report

This report details the findings of the Biodiversity Management Agreement (BMA) Tax Incentive Incubator, a project by the Sustainable Landscape Finance Coalition (including WWF-SA and Wilderness Foundation Africa). The incubator investigated how to unlock a dormant tax incentive under section 37C(1) of the Income Tax Act No. 58 of 1962 for the conservation management of species and habitats in South Africa. The investigation concluded that the necessary building blocks for the finance solution are present, leading to the launch of a pilot project targeting rhino and lion conservation between July 1, 2021, and June 30, 2022.

• The BMA Tax Incentive Incubator investigated the potential to activate a tax incentive under section 37C(1) of the Income Tax Act No. 58 of 1962, which is designed for Biodiversity Management Agreements (BMAs) as defined in section 44 of the National Environmental Management: Biodiversity Act No. 10 of 2004 (NEMBA). Although this legislation has existed since 2009, it has never been used because no BMA has been created in South Africa.
• A legal opinion determined that section 44 of NEMBA does not mandate that BMAs be published in the Government Gazette. However, the Minister has the discretion to do so under section 15 of the Interpretation Act 1957. Publication is required if the agreement constitutes 'administrative action' under the Promotion of Administrative Justice Act 2000 (PAJA), meaning it adversely affects the rights of the public or third parties.
• The legal analysis found that the power to enter into BMAs resides with the Minister, who must sign them individually unless those powers are delegated. Under section 42 of the National Environmental Management Act 1998, the Minister may delegate these powers to the Director General, an MEC, a protected area management authority, or another organ of state.
• The incubator identified that Norms and Standards (N&S) are not legally binding, meaning the implementation of the finance solution can focus on primary legislation to simplify the process.
• A pilot project was established to run from July 1, 2021, to June 30, 2022, to test the tax incentive in the tax returns of qualifying taxpayers managing threatened species. The pilot focuses on the rhino and lion communities of practice, engaging a minimum of three voluntary landowners for each species to test the application of the incentive against management costs.
• Economic modeling by Dr Hugo van Zyl of Independent Economic Researchers estimates that the BMA Tax Incentive will generate gradual economic benefits, starting at approximately R1.4 million per annum in 2022, increasing to R2.7 million per annum by 2030, and reaching R3.7 million per annum by 2040.

APA

WWF South Africa (n.d.). Sustainable Landscape Finance Coalition Innovation Hub Finance Solution Incubator: BMA Tax Incentive Investigation| Report. https://wwfafrica.awsassets.panda.org/downloads/incubator_bma_tax_incentive_investigation_report_final.pdf

Chicago

WWF South Africa. Sustainable Landscape Finance Coalition Innovation Hub Finance Solution Incubator: BMA Tax Incentive Investigation| Report. n.d. https://wwfafrica.awsassets.panda.org/downloads/incubator_bma_tax_incentive_investigation_report_final.pdf.

Wikipedia

{{cite report |author=WWF South Africa |title=Sustainable Landscape Finance Coalition Innovation Hub Finance Solution Incubator: BMA Tax Incentive Investigation| Report |url=https://wwfafrica.awsassets.panda.org/downloads/incubator_bma_tax_incentive_investigation_report_final.pdf |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{wwfsouthafricandsustainable, author = {{WWF South Africa}}, title = {{Sustainable Landscape Finance Coalition Innovation Hub Finance Solution Incubator: BMA Tax Incentive Investigation| Report}}, institution = {WWF South Africa}, url = {https://wwfafrica.awsassets.panda.org/downloads/incubator_bma_tax_incentive_investigation_report_final.pdf}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }