The South African Parliament’s Portfolio Committee on Tourism has received a comprehensive briefing on the country’s preparations for the upcoming G20 Summit and the progress of the Tourism Equity Fund (TEF), while commending the efforts of the Department of Tourism and the Tourism Business Council of South Africa (TBCSA).
According to parliament.gov.za, priorities for the G20 tourism agenda include plans to (1) enhance travel tourism start-ups and SMMES through digital innovation, (2) tourism financing and investment to enhance equality and promote sustainable development, (3) air connectivity to ensure seamless travel, and (4) enhanced resilience for inclusive, sustainable tourism development.
The department also told the committee about planned outreach events on the G20 priorities in the three municipal districts in Mpumalanga and one district in the Northern Cape. These include a symposium in partnership with Mpumalanga University in the Ehlanzeni District, community engagements in the Gert Sibande and Nkangala districts, and also an engagement in the Francis Baard District in the Northern Cape. The department said that the outreach programme will form part of the build-up programme leading to the Tourism Ministerial G20 meeting. The outreach also aims to advance participatory democracy and create awareness of South Africa’s hosting of the G20. The department’s presentation to the committee also noted that the public outreach will also promote awareness on the G20’s focus on economic growth and job creation, which can have a direct impact on local communities and improve their economic wellbeing. Meanwhile, increased trade and investment opportunities made possible by the G20 will help local businesses expand their markets and attract foreign investment.
The outreach programmes will also look at the G20’s efforts to address climate change and promote sustainability. These can have a significant impact on local communities, helping them mitigate the effects of climate change. Acting Chairperson of the Portfolio Committee on Tourism, Ms Sthembile Hlongo, said: “We appreciate the work done by the department and the business practitioners in the sector. It is also encouraging to see South Africa leading the theme on poverty reduction, which is in line with our national priorities.” She also noted that the deliverables must have clear timeframes and be guided by the department’s annual performance plans and those of SA Tourism.
CEO of TBCSA Ms Tshifhiwa Tshivhengwa noted the importance of this work, saying that hosting of the G20 is a stamp of approval for South Africa’s ability to host global conferences. The committee also received a briefing from the Small Enterprise Development and Finance Agency’s (SEFDA) Mr Nkosikhona Mbatha on the Tourism Equity Fund, which seeks to increase growth and transformation and stimulate more inclusive participation in the tourism sector in line with the Tourism B-BBEE sector codes, while addressing funding challenges in the tourism sector. The briefing covered progress in implementing the Tourism Equity Fund and support to small and medium enterprises in the tourism sector.
TEF’s core funding activities focus on accommodation, hospitality and related services, travel and related services, and tourism-related products that support the development of the sector in South Africa. In addition, the committee heard that earlier this year the Department of Tourism began engagements with SEDFA on instructions to suspend the implementation of the fund; the last transactions were approved on 22 January 2025. The committee welcomed the briefing from SEFDA and said the fund is making valuable progress and demonstrating potential to change the ownership profile of tourism businesses, ensuring transformation through funding projects owned by women and black people.
“Despite progress in the fund, the committee is generally unhappy with the slow pace in the implementation of the fund. The geographical spread of the disbursement of funds is also a call for concern. It is understood that funding is based on applications, but more could have been done in advertising the fund and assisting applicants. This is a government project meant to advance transformation so it must be as inclusive as possible,” the Chairperson said. She also recommended that the department must tighten oversight over the implementation agents to ensure timeous achievement of transformation in the tourism sector. Tourism Minister Ms Patricia de Lille told the committee that her department is waiting for a close-up report from SEFDA so that the department can move the programme to a new implementing agent.
