The National Empowerment Fund (NEF) has highlighted the significant impact of its Tourism Transformation Fund (TTF) in reshaping South Africa’s tourism sector.

Launched in partnership with the Department of Tourism, the TTF is a capital investment funding mechanism specifically designed to support black-owned tourism enterprises. By offering a blended finance model – combining grant funding, debt finance, and equity contributions – the Fund provides entrepreneurs with access to much-needed capital and resources. Grant funding is capped at 50% of project cost, up to a maximum of R5 million per beneficiary.

Initially seeded with R120 million in grant funding from the Department of Tourism, the Fund was recapitalised in 2024/25 with a further R100 million to meet rising demand. This brings the Department’s total contribution to R220 million.

Since its inception in 2017, the TTF has approved more than R270 million in funding for black-owned tourism businesses across South Africa. The Fund has supported over 1,000 jobs through 23 enterprises, with 76% of these businesses being majority black-women owned.

Some of the notable beneficiaries include:

• ZAD Hiring (Eastern Cape) – Expanded into events by developing The Amber Venue, a wedding and events facility in Kidds Beach, East London.
• Nare Hotel (Northern Cape) – Providing much-needed accommodation and hospitality services in a growing region.
• Rensia Palace and Spa (Limpopo) – Offering wellness and leisure experiences rooted in local culture.
• Graskop Gorge Lift Co. (Mpumalanga) – Developed into a major Panorama Route attraction with the help of a R5 million grant.
• Tautona (North West) – A tourism business strengthening the province’s hospitality offering.

A Commitment to Transformation

According to NEF CEO Mziwabantu Dayimani, the Fund is designed to ensure tourism growth is inclusive and sustainable.

“South Africa has a wealth of tourist attractions, culture and heritage that can attract tourists to all nine provinces,” Dayimani said. “The Tourism Transformation Fund has enabled black-owned businesses — particularly those led by women and youth — to thrive, scale up, and create jobs.”

This year’s Tourism Month theme, announced by Minister of Tourism Patricia de Lille, was “Tourism and Sustainable Transformation.” In line with this theme, the TTF has shown how targeted funding can empower entrepreneurs from diverse backgrounds to grow tourism businesses across urban, township, and rural economies.

Beneficiaries themselves highlight the tangible impact:

Catherine Dunjwa, CEO of ZAD Hiring, said:

“The support from the TTF allowed us to build The Amber Venue, which accommodates up to 300 guests. This has created employment opportunities in our community while expanding our tourism offering.”

Oupa Pilane, co-founder of Graskop Gorge Lift Co., added:

“The Fund’s R5 million grant made it possible to establish a world-class attraction that now draws thousands of visitors to the Panorama Route each year.”

The NEF’s Tourism Transformation Fund continues to play a pivotal role in reshaping the tourism industry, proving that inclusive funding models can drive long-term sustainability while ensuring that the sector reflects the diversity of South Africa itself.