A total of 985 applications for Tourism Equity Fund (TEF) were initiated by prospective applicants with a total of 131 completed applications submitted which met all requirements, the Department of Tourism together with the Small Enterprise Finance Agency (Sefa) said on Wednesday.
This follows the opening of the TEF application process for small businesses on 6 November 2023.
The Department of Tourism, together with Sefa – an agency within the Department of Small Business Development – announced the opening of the application process for TEF in November 2023, after Cabinet’s approval in September for the revised TEF implementation plan.
The R1.2 billion fund aims to increase growth, transformation and stimulate more inclusive participation in the tourism economy, in line with the targets of the Tourism Broad-Based Black Economic Empowerment (B-BBEE) Sector Codes.
“The TEF is intended to address the funding challenges faced by qualifying Small Enterprises and Emerging Micro Enterprises in the tourism sector,” the department stated.
RELATED STORY: Tourism Equity Fund gets green light.
According to Sefa, the 131 submitted applications represent a combined investment value of just over R2 billion. The government agency reported that some of the 131 applications formally submitted have already been pre-screened, while pre-screening for the remaining applications will be completed by the end of the year.
Although no specific information is available yet on the type of enterprises, or the nature of projects for which TEF support have been applied for, Sefa’s preliminary report indicates that 45 of the registered applications originated from Gauteng, 21 from KwaZulu-Natal, while between 10 and 14 applications were submitted between Limpopo, Northwest, Western Cape and Eastern Cape and with only one from the Free State.
Subsequent to basic or pre-screening, Sefa explained that the applications are subjected to a due diligence process, which includes a more detailed assessment of financial viability, Financial Intelligence Centre Act (FICA) compliance and reporting, credit and legal checks before preparing presentations to the relevant investment committee for final adjudication.
Tourism Minister, Patricia de Lille, said the department is encouraged by the level of interest and number of applications for the Fund.
“This is in line with our aims as government to support investment by the private sector to grow an inclusive tourism sector that can continue to contribute to the country’s economy and job creation.
“We will continue to keep businesses and the public updated on this important project in the coming weeks and months,” de Lille said.
