How to apply for the Tourism Transformation Fund

September is Tourism Month and one of the key opportunities available to black entrepreneurs in the sector is the Tourism Transformation Fund (TTF). 

The TTF is a dedicated capital investment funding mechanism established by the Department of Tourism, in collaboration with the National Empowerment Fund (NEF). 

It focuses specifically on providing financial support for black entrepreneurs who are developing projects in the tourism sector.

The Fund aims to drive transformation in a direct and impactful way. It not only assists black-owned tourism enterprises to expand and grow, but also supports the rise of a new generation of black-owned youth, women and community-owned businesses that can take the tourism sector to new heights. The TTF is administered by the NEF on behalf of the Department of Tourism.

The Fund provides a combination of grant funding, debt financing, and equity contributions to support capital investment in the tourism sector by black entrepreneurs. The pilot phase, launched in 2018, went through a review process in 2021 which led to an increase in the grant funding available to successful applicants, as well as the inclusion of projects funded by other Development Finance Institutions (DFIs).

The Department’s grant contribution for approved applications is limited to 50% of the total funding approved, capped at a maximum of R5 000 000 (Five Million Rand) per beneficiary. Co-financing tourism transactions between the NEF and/or other accredited DFIs is allowed, subject to agreement with the NEF.

How to apply for the TTF

Applicants should submit their application forms and supporting documents directly to the NEF, which will assess applications for commercial viability and TTF eligibility. More detailed information, including the application form and checklist, can be downloaded from the NEF website.

The NEF provides funding to black entrepreneurs and groups to facilitate access to finance in support of Broad-Based Black Economic Empowerment in line with government legislation. Its investment activities are guided by a policy that seeks to ensure real economic empowerment for black people while maintaining sound economic principles.

Application criteria

Applicants must ensure their businesses meet the following requirements:

• Commercial viability of the business case being presented.
• Compliance with all relevant laws and regulations.
• Operational involvement by black people at managerial and board levels.
• Minimum of 50.1% black ownership or interest.
• Ability of the business to repay NEF funding.
• Demonstrated potential to create a reasonable number of jobs.
• Geographic location considered, with preference for rural or economically depressed areas.
• Meaningful participation by black women is favourably considered.
• Rural and community development projects must have meaningful participation by communities.
• Possibility of co-funding with private or public sector institutions is encouraged for larger projects.

This information was supplied by the National Empowerment Fund. 

All TTF applications and enquiries should be sent to: tourism@nefcorp.co.za  
For more information about the TTF, visit: www.nefcorp.co.za/products-services/tourism-transformation-fund