Parliament, Thursday, 28 January 2020 – The Portfolio Committee on Tourism welcomes the Tourism Equity Fund (TEF) that was launched by the Department of Tourism yesterday.
The value of the TEF is R1.2 billion, comprising R 540 million from the Department of Tourism, R 594 million from major South African commercial banks, and R 120 million from the Small Enterprise Finance Agency (Sefa). The fund will go a long way in addressing transformation in the tourism sector, particularly ownership of tourism assets by black South Africans.
The portfolio committee has identified transformation in the tourism sector as one of its priority areas of oversight. It realised that the sector remained untransformed despite the Tourism Broad Based Black Economic Empowerment sector codes and called for the Department of Tourism to conceptualise innovative interventions to expedite transformation in the sector.
In his 2019 State of the Nation Address, the President Cyril Ramaphosa announced that the government will be introducing the TEF. The committee applauds the Minister of Tourism and President Ramaphosa in fulfilling this undertaking, despite the delays imposed by the Covid-19 pandemic.
The TEF is a good example of a public-private partnership between the government and the private sector. The nature of the fund, which includes both grant and loan elements is welcome.
The Chairperson of the tourism committee, Mr Supra Mahumapelo said: “The committee will closely scrutinise the disbursement of the TEF, as calls have been repeatedly made to ensure that government programmes benefit small and medium tourism businesses in small towns, villages and townships. The Department of Tourism and Sefa are urged to ensure that the TEF focusses on tourism in these areas, as this is where poverty and inequalities are most prevalent. As such, the committee calls for the qualifying criteria to be simplified so that they do not exclude the intended beneficiaries.”
ISSUED BY THE PARLIAMENTARY COMMUNICATION SERVICES ON BEHALF OF THE CHAIRPERSON OF THE PORTFOLIO COMMITTEE ON TOURISM, MR SUPRA MAHUMAPELO.
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