STAFF REPORTER|
GOVERNMENT launched the R1.2 billion Tourism Equity Fund on Tuesday, saying it was a breakthrough for women, people with disabilities and black-owned businesses.
President Cyril Ramaphosa delivered the keynote address at the virtual launch of the fund, and was joined by Tourism Minister Mmamoloko Kubayi-Ngubane and Minister of Small Business Khumbudzo Ntshavheni.
Addressing the launch, Ramaphosa said that one of the immediate measures identified in the plan to protect the supply side capacity of the tourism sector is transformation via a Tourism Equity Fund that facilitates the participation of black entrants, women and persons with disabilities.
“This Fund is aligned with the National Tourism Sector Strategy 2016-2026, which places significant emphasis on a transformative and inclusive tourism economy,” said Ramaphosa.
“One of the five pillars of this Strategy addresses the issue of broad-based benefits in the tourism sector. It specifically focuses on transformation, rural and township tourism development, enterprise development and investment. The Tourism Equity Fund is informed by the recognition that the capital-intensive nature of the industry prevents many black-owned tourism enterprises from growing and developing.”
The Department of Tourism is expected to provide initial funding of R540 million to the project.
Additional funding of R120 million will come from the Small Enterprise Finance Agency (Sefa) and R594 million from commercial banks – giving it seed capital of R1.2 billion.
He further said tourism directly accounts for 2.9% of South Africa’s GDP and 8.6% indirectly, and supports about one-and-a-half million direct and indirect jobs.
“But this is not nearly enough. South Africa’s tourism base is significant, and we are one of the world’s most popular long-haul destinations,” said Ramaphosa.
“Given South Africa’s many draw-cards, not least of all our spectacular natural attractions, these figures should be and must be far higher. This is a sector that is labour-intensive and therefore has immense job creation potential.”
Kubayi-Ngubane said the fund was a significant milestone for the sector and seeks to achieve, among other things, to fund commercially viable and sustainable majority Black owned tourism enterprises with a minimum of 51% black ownership including enterprises in rural areas and townships, to help create jobs, alleviation of poverty, fight inequality and promote growth of black controlled tourism enterprises.
The minister said it will also facilitate the participation of targeted groups such as women and youth in the priority tourism sectors as defined by the B-BBEE sector codes.
“The tourism sector in South Africa is largely private sector owned and driven, and its contribution to the South African economy has grown tremendously since the 1994 democratic breakthrough,” said Kubayi-Ngubane.
“The private sector has done an excellent job in developing and investing in the sector to turn our natural endowments into economic assets for the country. However, much remains to be done to stimulate new investments and to fully exploit the potential that is still unexplored in our country’s tourism sector.”
She added that the outbreak of the COVID-19 pandemic that brought the tourism sector to a grinding halt for most of last year and still continues today, has reduced the number and diversity of tourism attractions.
“Throughout this period, the sector has experienced great difficulties, however, the sector has also shown admirable resilience,” she said.
(SOURCE: INSIDE POLITICS)
