When the Tourism Equity Fund was introduced, civil rights groups, AfriForum and Solidarity, took the government to court. The groups argued successfully in court that the 51% black-ownership requirement was discriminatory and unlawful.
Minister in the Presidency Khumbudzo Ntshavheni. Picture: Twitter/@Khu_Ntshavheni
JOHANNESBURG – The national government has dropped the requirements for its COVID-19 Tourism Relief Fund from 51% to 30% black ownership following a court challenge by civil rights groups.
In 2020, the ministry of tourism introduced the Tourism Equity Fund, which will provide loans and grants to businesses in the sector that were negatively impacted by the coronavirus pandemic.
However, the fund had a caveat, which stated that only businesses with a 51% ownership would be eligible to receive the grant.
Speaking during a post-Cabinet media briefing in Pretoria on Thursday, Minister in the Presidency, Khumbudzo Ntshavheni, said government had resolved to lower the requirements.
When the Tourism Equity Fund was introduced, civil rights groups, AfriForum and Solidarity, took the government to court.
The groups argued successfully in court that the 51% black-ownership requirement was discriminatory and unlawful.
This was confirmed by the Supreme Court of Appeal and the Constitutional Court.
Minister Ntshavheni said the court cases were delaying the implementation of the programme.
“And because the case was being prolonged then it was prudent to find an out-of-court settlement and the settlement was we are going to implement the TEF in line with the current BEE codes applicable to the department of Tourism.”
The ministry of tourism is expected to give an update soon on how businesses can apply for the fund.
