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On day one (October 30) of the Tourism Transformation Summit, Minister of Tourism, Tokozile Xasa, launched the Tourism B-BBEE Portal and further discussed the Tourism Transformation Fund (TTF), which will be launched later this financial year.
“These initiatives serve to address two main aspects in our plan for radical economic transformation; the use of state procurement levers to empower black suppliers of tourism products and services, and the creation of enhanced mechanisms for access to funding for new initiatives and expansion projects,” said the Minister.
Tourism Transformation Fund
The TTF is an incentive scheme that focuses specifically on financial support for black investors and communities investing in capital projects in the tourism sector. The fund aims to not only assist black-owned tourism SMEs, but also catalyse the rise of a new generation of youth, women and black-owned tourism enterprises.
Minister Xasa said a lack of access to funding had restricted the growth of small enterprises and the participation of local communities. “In recognition of this challenge and with the support of the National Treasury, we entered into a partnership with the National Empowerment Fund (NEF) to establish a Transformation Fund.”
The fund is currently capitalised to an amount of R120 million (€7.34m) with the aim of building it to R360 million (€22m) in three financial years (FY 2017/2018 to FY 2019/2020). This will take place through annual grant funding of R40 million (€2.45m) by the Department of Tourism and R80 million (€4.9m) loan and/or equity funding by the NEF.
In May this year, the Minister advised that every rand from the Department would be matched by two rand from the NEF. The fund includes NEF equity, debt and NDT grant funding. The grant funding will be capped at R5 million (€306 000).
“This fund will also assist in the provision of support (other than financial) to black entrepreneurs in the tourism sector to encourage tourism-related commercial activity, create jobs and facilitate skills development. We also want to ensure that the tourism products developed are sustainable.”
Evaluation criteria: black women ownership, youth ownership, community ownership, ownership by people living with disabilities, black management control, number of jobs sustained and/or created, tourism priority sub sectors, geographic location.
Tourism B-BBEE Portal
Developed by the Tourism B-BBEE Charter Council, the portal is a matchmaking platform that allows large enterprises to identify, compare, and then procure goods and services from 100% black-owned suppliers.
Minister Xasa said: “The main aim of the portal is to assist large enterprises to meet the Enterprise and Supplier Development element targets of the Amended Tourism B-BBEE Sector Code, while empowering black suppliers.”
The portal will ensure that the following information is accessible:
Reliable information on black-owned suppliers with the required expertise for the purpose of Preferential Procurement, Enterprise and Supplier development. This will reduce the amount of time and extra administration required by large enterprise to identify and verify black-owned suppliers for procurement purposes.
The latest B-BBEE practice notes published either by the Department of Trade and Industry or the Tourism B-BBEE Charter Council.
An updated list of Tourism B-BBEE Verification Professionals.
The portal is also a reporting tool. As such, measured entities in the tourism sector will be required to upload their B-BBEE information under the Tourism Enterprises directory of the portal.
Source: tourismupdate.co.za