BACKGROUND
The Tourism Transformation Fund (TTF) is a dedicated capital investment funding mechanism established by the Department of Tourism in collaboration with the National Empowerment Fund (NEF) and focusses specifically on financial support for black entrepreneurs investing in projects in the tourism sector.
The TTF was launched in 2018 and through grant funding aims to drive transformation in the tourism sector in a more direct and impactful manner that will not only assist black-owned tourism enterprises to expand and grow, but also to catalyse the rise of a new generation of black-owned tourism enterprises to propel the tourism sector to greater heights.
The TTF provides a combination of grant funding, debt financing and equity contributions to facilitate capital investment in the tourism sector by black entrepreneurs. The grant funding portion is used to reduce the approved loan finance and/or equity contribution by the NEF, where commercial viability of the tourism project has been established.
Through the partnership, the NEF is responsible for administering the TTF, including the receipt and processing of all applications.
The Department's grant contribution for approved applications, is limited to 50% of the total loan finance and/or equity contribution approved by the NEF and is capped at a maximum of R5 000 000 (Five Million Rand) per beneficiary. The balance of project funding to be made up of debt finance and equity contributions by the NEF or any other Development Finance Institutions (DFIs) as well as owner’s contribution.
Co-financing tourism transactions between the NEF and/or other accredited Development Finance Institutions (DFI's) is allowed under the Fund. Any such arrangement needs to be agreed to by the NEF.
APPLICATION PERIOD
Applications for the TTF are currently open and the Department of Tourism invites prospective applicants to submit applications to the NEF.
APPLICATION PROCEDURE
- Applicants should submit completed application forms and supporting documents directly to the NEF, who will assess commercial viability and compliance with the programme eligibility criteria.
- More detailed information as well as an application form and checklist can be downloaded from the NEF website: https://www.nefcorp.co.za/products-services/tourism-transformation-fund/
- All applications and enquiries should be sent to: tourism@nefcorp.co.za
- Note that incomplete applications will not be considered for funding.
DISCLAIMER
Prospective applicants for the TTF are advised to be wary of people purporting to be representatives or agents of the programme.
Please note that the NEF and the Department of Tourism have not appointed agents or consultants to assist enterprises with the preparation of applications. The use of, and payment of any fees to consultants to assist with an application, is at the discretion of the applicant.
The provision of grant funding is subject to availability of funds.