Following extensive delays, the Department of Tourism has shifted the implementation of the Tourism Equity Fund (TEF) from the Small Enterprise Finance Agency (SEFA) to the Public Investment Corporation (PIC). However, in a recent Parliamentary meeting, it came to light that the original implementer, SEFA, is refusing to hand over any information on grant recipients.
At a recent meeting of Parliament’s Select Committee on Economic Development and Trade, Minister of Tourism Patricia de Lille requested Parliament’s support in addressing “the performance or non-performance of the TEF”.
She said, after advice from National Treasury, a decision was made to move the implementation of the fund to the PIC. A close-out report was requested and, according to De Lille, prepared by SEFA although it “refused to give the names of the companies and individuals that have benefitted so far” citing the Protection of Personal Information Act (POPIA).
De Lille said the Department of Tourism sought legal opinion in a bid to compel SEFA to share the information and found that the department is entitled to the information. She said SEFA is “hiding behind POPIA” but “there is nothing stopping Parliament from asking the questions”.
Sonja Boshoff, Chairperson of the Select Committee on Economic Development and Trade, said SEFA cannot hold the department to “ransom”. “This is not just about administration – it affects the lives of ordinary South Africans.”
The committee has resolved to summon SEFA to a formal engagement and will correspond with the Minister of Small Business Development, Stella Ndabeni-Abrahams, to request her intervention. The committee intends to pursue a joint meeting with both ministers and SEFA, Boshoff added.
A long list of delays
Originally established by De Lille’s predecessor, Mmamoloko Kubayi-Ngubane in 2021, the TEF was intended to promote transformation in the tourism sector by providing black-owned businesses with debt finance and grant funding. It is supposed to support 80% existing businesses and 20% new businesses. But, shortly after its announcement, the R1.2 billion (€57.4 million) fund was challenged in court by Solidarity and AfriForum arguing that the 51% allocation to B-BBEE businesses was not in line with legislation. Government ultimately lost the case.
In 2023, De Lille negotiated with Solidarity and AfriForum to agree on an out-of-court settlement. The revised terms of the TEF were approved by Cabinet in August 2023 and applications opened in November the same year.
However, progress has been slow, as reported by the Department of Tourism. As at January 2025, just 23 applications worth R466 million have been approved, supporting 493 jobs, Mmaditonki Setwaba, Deputy Director-General for Tourism Sector Support Services in the Department of Tourism, told the committee. Of the committed funds, only R125 million (€22.3 million) has been disbursed to date. A further 442 applications are in preliminary assessment and 58 in due diligence phase.
