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Tourism Equity Fund Under the Spotlight

February 4, 2021

Department of Tourism

The tourism department has emphasized that broad-based black economic empowerment was “never designed to exclude established businesses or South Africans but to level the playing field in the economy”.

The department highlighted this in a statement on potential legal action regarding the recently launched Tourism Equity Fund.

The Fund, valued at over R1.2 billion, was launched at the end of January 2021.

The tourism minister, Mmamoloko Kubayi-Ngubane, speaking at the launch, described the Fund as a “dedicated fund that will provide a combination of debt finance and grant funding to facilitate equity acquisition as well as new project development in the tourism sector by black entrepreneurs”.

The minister confirmed that government, in responding to the devastation caused by the Covid-19 pandemic on the tourism sector, “made a commitment that it will contribute to the rejuvenation of the supply side of the tourism market”.

“We believe that to deepen the diversification of the tourist attractions, we also have to pay attention to the diversification and transformation of the sector in terms of ownership and management control. Broadening participation in the tourism sector to South Africans of all races, ages and genders can only enrich the tourism sector to be more competitive and sustainable in the long run”, she said.

In the statement, the department stressed that government remains “steadfast in our commitment to advancing the transformation agenda through creating equitable opportunities, as we strive to create an inclusive and revived tourism economy as part of our country’s economic reconstruction and recovery plan”.

It added that the Fund will help to crowd in investments in the tourist sector and diversify tourist attractions in South Africa.