The initiative aims to broaden inclusion of all South Africans in the sector.
Government has committed R1.2 billion towards the renewal of the South African tourism sector over the next three years.
This was announced by Tourism Minister Mmamoloko Kubayi-Ngubane at the launch of Tourism Equity Fund (TEF) recently.
As part of South Africa’s Economic Reconstruction and Recovery Plan, the TEF aims to drive transformation through advancing equitable opportunities to ensure inclusive economic growth in the tourism sector.
“Broadening participation in the tourism sector to South Africans of all races, ages and genders can only enrich the tourism sector to be more competitive and sustainable in the long run,” says Minister Kubayi-Ngubane.
This initiative is in collaboration with the Small Enterprise Finance Agency (Sefa), which falls under the Department of Small Business Development.
Sefa will manage the fund on behalf of the Department of Tourism over the initial three years.
“During this three-year period, the department will capitalise the fund with an amount of R540 million. The funding from the department will be matched with a contribution of R120 million from Sefa and R594 million from commercial banks that will be participating in this programme. This combination will put the value of the Tourism Equity Fund at just over R1.2 billion,” says the Minister.
The fund will focus on tourism enterprises in the following sub-sectors;
- Accommodation such as hostels, lodges, resorts,
- self-catering units and backpacker facilities.
- Hospitality and related services, which include conference and convention venues.
- Tour operators.
- Any other tourism-related products and initiatives not referred to above which support tourism development and job creation.
To be eligible for funding:
- The enterprise has to be a registered legal entity in South Africa.
- The entity needs to be 100% owned by South African citizens.
- The entity needs to be predominantly black owner-managed and controlled.
- The entity needs to be registered and compliant with the South African Revenue Service.
For more information on the TEF, visit: www.sefa.org.za