Deputy minister of tourism marks major milestones during an event in Graskop
The Tourism Transformation Fund is an initiative for fostering economic transformation and empowerment within the tourism sector.
As a way to celebrate some transformation milestones, the deputy minister of tourism, Fish Mahlalela, and the acting CEO of the National Empowerment Fund (NEF), Mziwabantu Dayimani, hosted an event at the Graskop Gorge on Thursday May 23.
This was to mark the milestones attained through the department’s Tourism Transformation Fund (TTF). This fund is a dedicated capital investment funding mechanism established by the Department of Tourism (DoT) in 2021, in collaboration with the NEF, to financially assist black-owned tourism enterprises and to invest in projects in this sector.
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The R120m fund provided a combination of grants, debt financing and equity contributions to facilitate capital investment in the tourism sector. The grant funding portion was utilised to reduce the approved loan finance and/or equity contribution by the NEF, where commercial viability of the project had been established.
The TTF is an important initiative for fostering economic transformation and empowerment within the tourism sector. Since its inception in 2017, it has approved several transactions to the value of R272m.
Six of these are operational, while a further six are under construction and 10 of the approved transactions are at various stages of development, with many scheduled to commence construction in due course.
Mahlalela said, “Our collaboration with the NEF in establishing the TTF has been a key indicator of our commitment to driving inclusive growth in the tourism sector. By providing targeted support to black-owned enterprises, we aim to create a more equitable and prosperous industry that benefits all South Africans”.
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According to Mahlalela, there are many untapped opportunities for funding and the continued need for transformation in this sector.
Dayimani said the transformation fund represents a significant step towards empowering black entrepreneurs. “Administered by the NEF on behalf of the department, the TTF offers a comprehensive funding solution tailored to the diverse needs of black-owned enterprises across the tourism value chain. The TTF aims to catalyse the growth and emergence of a new generation of black-owned tourism enterprises,” he said.
