Kubayi-Ngubane: TEF delays will negatively affect black businesses

Tourism Minister Mmamoloko Kubayi-Ngubane said that there had been great interest in the equity fund by thousands of entrepreneurs. However, they'd have to wait until the court challenge by Solidarity and AfriForum against the scheme was concluded to move forward.

FILE: Tourism Minister Mmamoloko Kubayi-Ngubane. Picture: GCIS

JOHANNESBURG - Tourism Minister Mmamoloko Kubayi-Ngubane said that the total value of applications for the Tourism Equity Fund (TEF) was at R5.6 billion.

The R2.2 billion scheme was established to transform the sector by providing funding to businesses which had 51% black ownership and management.

However, a court interdict has halted the processing of applications.

The minister said that there had been great interest in the equity fund by thousands of entrepreneurs.

However, they'd have to wait until the court challenge by Solidarity and AfriForum against the scheme was concluded to move forward.

She said that she hoped that the legal process would be expedited to assist those who had already leveraged funds from the TEF.

"The delays in implementing the Tourism Equity Fund will negatively affect black businesses, which had already negotiated deals and applied for the funding," said the minister.

Solidarity and AfriForum were opposed to 51% black ownership criteria, saying that it was unconstitutional and irrational.

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