De Lille slams slow application process of R1.2bn tourism fund

Tourism Minister Patricia de Lille has sharply criticised the sluggish administration of the Tourism Equity Fund (TEF).

Speaking out against bureaucratic inefficiencies, De Lille described the application process as “painfully slow” and expressed serious concern about the pace of the disbursement of funds.

Despite the application process being sluggish, TEF reportedly approved R301 million for 20 businesses across South Africa.

“The administration of this fund and application processing has been too slow,” she bluntly stated.

Tourism fund applications painfully slow

The minister emphasised the critical nature of these delays, warning that bureaucratic hurdles are preventing meaningful transformation in the tourism sector.

“The more delays tourism businesses face in accessing finance, the more we are not achieving transformation and the creation of the much-needed jobs in the tourism sector,” she explained.

De Lille publicly apologised to the tourism sector for the poor performance of the application process.

She directly pleaded to the Small Enterprise Finance Agency (Sefa) to accelerate their efforts.

“I am appealing to Sefa to continue putting more meaningful work and effort into ensuring that applicants access the TEF urgently.”

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Fund’s strategic objectives

The R1.2 billion fund, managed by the Sefa, has so far supported businesses across six provinces.

KwaZulu-Natal (KZN) leads with five approvals, followed by businesses in Gauteng, Eastern Cape, Limpopo, Western Cape, and the Free State.

Of the 20 approved applications, two represent entirely new businesses, while 18 focus on expanding existing enterprises.

Launched in November 2023, the TEF aims to provide financial support to black entrepreneurs through a blended finance approach.

The fund combines debt and grant financing to facilitate equity acquisition and new project development in the tourism sector.

To address the slow processing, Sefa has begun expanding its outreach activities, including hosting webinars to guide applicants through the application process.

However, De Lille’s pointed criticism suggests that more substantial improvements are needed to meet the fund’s transformation goals.

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