The Tourism Equity Fund (TEF) Grant

The Tourism Equity Fund (TEF) Grant

News: 26 January 2021

The tourism department has announced the creation of an equity fund which aims to support small-scale stakeholders in the industry, as the sector continues to reel as a result of the global Covid-19 pandemic.

The Tourism Equity Fund (TEF) will provide financial assistance to majority black-owned enterprises. Launched on Tuesday 26 January, the R1.2 billion fund, financed by government departments and South Africa’s major banks, is now accessible to disadvantaged tourism operators.

Between international travel bans, curfews and capacity limitations, South Africa’s tourism industry lost almost R70 billion during the months of hard lockdown. Continued restrictions have sapped much of the industry’s 8.6% contribution to South Africa’s total GDP. The Tourism Business Council of South Africa predicts that more than 600,000 direct jobs could be impacted due to lockdown regulations.

During the virtual launch, President Cyril Ramaphosa recapped the tourism industry’s severe challenges and stressed the importance of the sector’s transformation to empower black-owned enterprises.

The department of tourism has capitalised the fund with a contribution of R540 million. The Small Enterprise Finance Agency (SEFA), which acts as the TEF administrator, has added a further R120 million and the remainder is supplemented by South Africa’s major banks to the value of R594 million.

The fund aims to support accommodation, hospitality-related services, and tour operators in the tourism industry. Loan facilities, capped at ten years, and grant funding will both be offered by SEFA.

The maximum grant amount payable to successful applicants is R20 million and the minimum, R10 million.

SA’s new Tourism Equity Fund: Here’s how to apply for your share of R1.2 billion.

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