Ramaphosa Launches R1.2bn Tourism Equity Fund to Boost Industry

By: Mfundo Mabaso and Bright Ntuli

President Cyril Ramaphosa says many jobs in the tourism and associated sectors in the value chain have been shed.

Ramaphosa sais this during his address at the virtual launch of the Tourism Equity Fund (TEF), on Tuesday.

Government has  launched the TEF, aimed at creating an inclusive and growing tourism sector by supporting entrepreneurship and investment on the supply side of the tourism sector.

According to Ramaphosa, Tourism directly accounts for 2.9% of South Africa’s GDP and 8.6% indirectly. It supports about one-and-a-half million direct and indirect jobs.

Ramaphosa says the fund will offer a combination of debt finance and grant funding for large capital investment projects. He also announced that the fund will provide access to finance for black-owned tourism projects.

Meanwhile, Tourism Minister Mmamoloko Kubayi-Ngubane says that during this three-year period, the Department of Tourism will capitalise the fund with an amount of R540 million.

She adds that the funding from the department will be matched with a contribution of R120 million from SEFA and R594 million from commercial banks that will be participating in the programme.

“This combination will put the value of the Tourism Equity Fund at just over R1.2 billion,” explains Kubayi-Ngubane.