The Tourism Equity Fund (TEF) is a fund established by the Department of Tourism (DT) in collaboration with private sector banking institutions in line with the existing B-BBEE legislation to be implemented by the Small Enterprise Finance Agency (sefa) on behalf of DT.
The TEF offers a blended finance support in the form of a loan from (sefa) and any other strategic financiers; and a grant funding from DT.
OBJECTIVES:
- To promote growth and transformation in line with the Tourism BBBEE sector codes
- To address the funding challenges faced by enterprises in the tourism sector
- To stimulate job creation in the sector
APPLICATION PROCESS:
STAGE 1: APPLICATION
- Applicants must complete and submit an application online through the sefa website www.sefa.org.za for the grant and /or loan component (sefa loan limited to R15m); and may also apply for a loan component to any other financier of choice.
- Please note that applicants must meet the application requirements of the respective financiers chosen.
STAGE 2: PRE-SCREENING
- Applicants will be screened against the qualifying criteria and eligibility. Applicants who meet pre-screening will proceed to a full due diligence. At this stage, the feasibility of the application will be evaluated.
STAGE 3: DUE DILIGENCE:
- At the due diligence stage, all applications will be assessed for financial viability, growth, and sustainability. Processes, systems, and capabilities will be tested against the supporting documentation. After this stage subject to a successful due diligence process, applications will be considered for approval. Application approvals will be limited to the availability of the funds.
FUNDING FOCUS AREAS:
- Accommodation: This encompasses establishments like hotels; resort properties, bed and breakfast (B&B), guesthouses, game lodges, resorts, and backpacker facilities.
- Hospitality and Related Services: This category includes conference and convention venues that are significantly tied to accommodation facilities, restaurants and professional catering. Privately owned attractions within well-established tourism hubs are also eligible for consideration.
- Travel and related Services: These comprise of tour wholesalers, tour operators, travel agents, tourist guides and car rental companies, and couch operators.
- Other Tourism related initiatives: The Tourism Equity Fund is open to enterprises within the Tourism Sector and all parts of the value chain as prescribed in the Tourism B-BBEE Sector Code.
DISCLAIMER
Prospective applicants for the TEF are advised to be wary of people purporting to be representatives or agents of the programme.
Please note that sefa 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.
For more information including qualifying criteria visit www.sefa.org.za
For fund inquiries contact Sefa:
Tel: 012 748 9600 or E-mail: tourismequityfund@sefa.org.za
Download TEF Brochure