Kubayi-Ngubane defends fund for BEE tourism firms
SUNDAY WORLD / 03 FEBRUARY 2021 - 14.21 / KABELO KHUMALO
Johannesburg – Minister of Tourism Mmamoloko Kubayi-Ngubane has hit out at the anti-transformation posture taken by Solidarity and AfriForum over the criteria of the recently launched Tourism Equity Fund (TEF).
The two bodies wrote to Kubayi-Ngubane questioning the legality and rationality of the 51% black owner/managed qualification criteria for the fund.
Kubayi-Ngubane said the fund will go a long way towards crowding in investments in the tourism sector and the diversification of tourist attractions in South Africa.
Cape Town - 4 September 2019 - Minister of Tourism Mmamoloko Kubayi Ngubane.
Picture Jeffrey Abrahams
“We wish to emphasise yet again that B-BBEE was never designed to exclude established businesses or South Africans, but to level the playing field in the economy,” she said.
President Cyril Ramaphosa and Kubayi-Ngubane on Tuesday unveiled the TEF.
Only businesses with at least 51% black ownership will qualify for loans or grants from this fund.
The R1.2-billion fund is aimed at providing debt financing, making available grants to obtain shares and facilitating new project developments in the tourism industry for black entrepreneurs. Monique Taute, the head of campaigns at AfriForum, said the organisation was considering legal options over the “racist” fund.
“The Covid-19 crisis exposed government’s true colours and race-driven objectives. The president made it abundantly clear that government wants to use this fund to transform the tourism industry. Government has a responsibility towards all its citizens, however. It is a shame that it now wants to use life buoys to help the people on the riverside, while thousands of others are drowning,” Taute said.
Solidarity’s Morné Malan said: “Government in effect destroyed whiteowned tourism businesses by prohibiting almost everyone from conducting business, while only helping some to keep head above water. In their frame of mind, it is acceptable to celebrate the ruin of white-owned businesses merely because this leads to accelerated redistribution. We simply cannot allow this.”
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER