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 focuses specifically on financial support for black entrepreneurs for projects in the tourism sector. The Fund 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 catalyse the rise of a new generation of black owned youth, women and community owned tourism enterprises to take the tourism sector to new heights. The Fund is administered by the NEF on behalf of the Department of Tourism.
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 provided by the Department of Tourism is used to reduce the approved loan finance and/or equity contribution by the NEF and/or other accredited Development Finance Institutions (DFI’s) where commercial viability of the tourism project has been proven.
The pilot phase of the TTF which opened in 2018, went through a review process in 2021 which led to an increase in the grant funding provided to successful applicants and also the consideration of projects funded by other DFI’s.
The Department’s grant contribution for approved applications is limited to 50% of the total funding approved and is capped at a maximum of R5 000 000 (Five Million Rand) per beneficiary.
Co-financing tourism transactions between the NEF and/or other accredited DFI’s is allowed under the Fund. This arrangement needs to be agreed to by the NEF.
APPLICATION PROCEDURE
Applicants should submit their application forms and supporting documents directly to the NEF, who will assess applications for commercial viability and TTF eligibility.
More detailed information on the TTF as well as an application form and checklist can be downloaded below
All TTF applications and inquiries 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 have not appointed agents or consultants to assist enterprises with the preparation of applications. The use of and payment of any fees to consultants is at the discretion of the applicants.
