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Published on : Thursday, January 28, 2021
South Africa’s government started a 1.2 billion rand ($79.4 million) fund aimed towards rejuvenating the tourism industry suffering from the effects of the outbreak.
The Tourism Equity Fund will be used for assisting black entrepreneurs for starting businesses and projects in the sector, said the Tourism Minister Mmamoloko Kubayi-Ngubane. The cash will come from government, lenders and the Pretoria-based Small Enterprise Finance Agency, the minister said.
Tourism-dependent businesses have been particularly hit harshly during the Covid-19 pandemic with border closures and travel restrictions prohibiting the usual flow of holidaymakers from Europe and elsewhere.
The discovery of a new corona virus variant in South Africa late last year only added fuel to the fire, putting the country on many nations’ lists of places to avoid.
Under normal circumstances, tourism accounts for 2.9% of South Africa’s economy, generating about 1.5 million jobs, said the President Cyril Ramaphosa.
Ramaphosa said, “This is a sector that is labor-intensive, and therefore has immense job creation potential. It generates foreign-direct investment and significant export earnings. It stimulates and supports the development of small businesses.”
The focus on black businesses is part of the government’s efforts to improve economic opportunities for the discriminated during apartheid.