43 tourism businesses secure transformation funding

Source: Leroy Joubert via Pexels

The fund, established through a partnership between the Department of Tourism and the National Empowerment Fund (NEF), provides grant funding, debt, equity financing and business support to black-owned tourism enterprises.

Speaking during a panel discussion at Africa’s Travel Indaba in Durban, National Empowerment Fund CEO Muziwabantu Dayimani said the programme continues to play an important role in supporting tourism transformation and enterprise growth.

“Today, the Tourism Transformation Fund continues to demonstrate the role that targeted developmental finance can play in advancing transformation within South Africa’s tourism sector,” he said.

More than 1,400 jobs supported

The Tourism Transformation Fund has supported more than 1,485 jobs to date, including 751 new jobs created and 734 jobs preserved.

“These are not just statistics. Behind every number is a black entrepreneur. Behind every investment is a family, a community, a dream, and a future being rebuilt,” said Dayimani.

He said the programme has supported a range of tourism businesses, including lodges, boutique hotels, cruise operations, safari businesses and hospitality enterprises.

“We are proud today to showcase Tourism Transformation Fund beneficiaries, who represent the next wave of transformed tourism enterprises in South Africa,” he said.

Grant funding reaches R150m

Deputy Minister of Tourism Maggie Sotyu said approximately R150.4m in grant funding has been approved through the programme since its launch in 2018.

According to Sotyu, the fund has received 799 applications to date, with 41 projects currently active and approved.

“Every tourism establishment built, every lodge expanded, every cruise operation launched, every boutique hotel supported, contributes to jobs, enterprise development, skills transfer, and economic participation,” she said.

The broader fund has approved transactions worth more than R510.51m through a combination of grants, debt and equity financing.

Applications remain open

Sotyu said the Department of Tourism and the NEF had shifted away from limited funding windows and now allow applications to remain continuously open until available funds have been allocated.

“This was an important shift because opportunities for transformation should not be constrained by narrow administrative timelines,” she said.
She added that post-investment support and mentorship remain important to helping tourism enterprises become sustainable long-term businesses.

Focus on ownership and inclusion

Dayimani said transformation within the tourism sector needed to become more visible through participation in ownership, procurement, and infrastructure.

“We understand that transformation cannot merely be discussed in policy documents and conference rooms. It must be visible in ownership patterns. It must be visible in procurement. It must be visible in infrastructure development, and it must be visible in who participates meaningfully in the tourism economy,” he said.

He added that greater participation from black entrepreneurs remained necessary across accommodation, hospitality, tourism, technology and tour operations.

“We need more black-owned lodges, more black-owned hotels, more black-owned tour operators, more youth-owned tourism technology businesses, more women-led hospitality enterprises and more community-owned tourism assets,” Dayimani said.

Projects showcased at Indaba

Five Tourism Transformation Fund beneficiary projects were showcased during Africa’s Travel Indaba:

• Elangeni Tourism – Mpumalanga
• Galenia Hotel Group – Northern Cape
• Kgabo Safaris – North West
• South Hill Trading – Northern Cape
• Tigresse Cruises – Western Cape

Stakeholders said the projects demonstrate growing diversity and participation within South Africa’s tourism economy.