South Africa: Tourism calls on eligible businesses to apply for Tourism Transformation Fund and Green Tourism Incentive Program

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Tourism calls for applications for its transformation and resource efficiency fund

The Ministry of Tourism calls on eligible companies to apply for the Tourism Transformation Fund (TTF) and Green Tourism Incentive Program (GTIP) from today October 1, 2021.

Tourism Transformation Fund (TTF)

The TTF is a dedicated capital investment mechanism that has been developed to drive transformation in the sector.

It helps small and micro black-owned tourism businesses grow and expand, creating a new generation of black-owned tourism businesses. The program is implemented and administered by the National Empowerment Fund (NEF) and all requests and approvals are handled by the NEF.

The TTF provides a combination of ministry grants and debt financing or equity contributions from the National Empowerment Fund (NEF) to facilitate capital investment in the tourism sector by potential black investors.

The Ministry’s grant portion of funding is used to reduce approved loan funding and / or NEF equity contribution for tourism projects. The grant component is capped at 50% of the total funding approved by the NEF up to a maximum of R5 million per applicant.

Green Tourism Incentive Program (GTIP)

The GTIP is a resource efficiency grant funding mechanism that helps private sector tourism businesses reduce the cost of investing in energy and water efficient operations, thereby enabling them to adhere to tourism practices. responsible while reducing their operating costs. The program is implemented and administered by the Industrial Development Corporation (IDC) on behalf of the ministry and all requests and approvals are handled by the IDC.

The GTIP globally offers the following to eligible tourism businesses:

the total cost of a new resource efficiency audit or review of an existing resource efficiency audit; and

provide funding to eligible small and microenterprises on a sliding scale of 50% to 90% of the total cost of implementing an approved intervention for water and energy resource efficiency, capped at $ 1 million rand.

The TTF and GTIP initiatives are aligned with the objectives of the National Tourism Sector Strategy (NTSS) which make inclusive growth and transformation fundamental drivers of the tourism sector.

As the tourism sector gradually strives to recover, Tourism Minister Lindiwe Sisulu believes there will be greater demand for new and diverse tourism offerings, especially those that promote the conservation of our scarce natural resources. . “As we rebuild our sector, we must be prepared to offer tourists a variety of products that showcase our country’s unique natural and historical heritage. “” Through the implementation of the TTF and GTIP, we envision creating an inclusive and sustainable sector, creating a path for new entrants to implement innovative businesses that make tourism thrive.

I encourage all businesses, especially youth and women owned businesses, to apply for both initiatives and to help transform our sector and maintain responsible tourism practices, ”said Minister Sisulu. The ministry’s funding initiatives have been successful in supporting businesses in the tourism sector. Nare Leisure Investment (Pty) Ltd is one of the many establishments that have benefited from the TTF.

The company has so far received support in the amount of R11.6 million, with an initial 30% contribution to blended finance from the Ministry of Tourism through a partnership with the National Empowerment Fund (NEF) .

The funds were used to build a four-star boutique hotel in Kimberley, Northern Cape Province. The 100% black woman-owned company was able to create 56 temporary jobs during construction and 16 permanent jobs after construction. Eligible tourism businesses are encouraged to submit completed application forms in accordance with the requirements of the TTF and GTIP programs.

Please note that incomplete applications will not be considered.

Tourism Transformation Fund (TTF)

TTF applicants should submit their application forms and supporting documents directly to the NEF, which will assess applications for commercial viability and TTF eligibility.

Information, application forms and guidelines are available on the NEF website at https://www.nefcorp.co.za/products-services/tourismtransformation-fund/ and inquiries can be directed to [email protected]

Green Tourism Incentive Program (GTIP)

GTIP applicants should submit their application forms and supporting documents directly to the IDC, who will assess the applications.

Information, application forms and guidelines are available on the IDC website at https://www.idc.co.za/green-tourism-incentive-programme/ and inquiries may be sent to [email protected]


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