R1.2bn tourism transformation fund to be rolled-out ‘with transparency and accountability’

JOHANNESBURG - While implementing the new Tourism Equity Fund, the Department of Tourism undertakes to continuously learn lessons and respond to any irregularities and challenges timeously by ensuring transparency, accountability and sustainability, Tourism Minister Mmamoloko Kubayi-Ngubane said on Tuesday.

She was part of a delegation briefing Parliament’s Portfolio Committee on Tourism on the new R1.2 billion fund announced by President Cyril Ramaphosa in January.

The Small Enterprise Finance Agency (Sefa), which will manage the fund on behalf of the department, made presentations to the committee as well.

The minister cleared up any confusion which might exist about the aim of the Tourism Equity Fund.

“This fund is not a relief fund.

This is a transformational fund, an equity fund that manages to assist us with transformation in the tourism industry. Reports done in 2015 and 2018 indicate that there was a regression in transformation in the industry,” she said.

“Other reports show that black women remain the face of poverty in SA and will continue to remain that and even become worse off with, no prospects of getting out of poverty unless government intervenes.”

The aim of the fund is to promote the participation of 51 percent black-owned enterprises within the tourism industry in a commercially viable and sustainable way. Beneficiaries will include enterprises in rural and township areas to promote the alleviation of poverty, inequality, and growth of black-controlled tourism enterprises.

The fund comprises grant funding and debt financing. Initial seed funding amounting to R77 million was authorised for this financial year (2020/21) after approval by National Treasury.

Thereafter, the Department of Tourism will contribute equal amounts of R180 million per year for three years starting in the 2021/22 financial year, amounting to a total of R540 million for grant funding and low-interest loans.