The iKwezi Tourism Facility (ITF) provides business loans to small businesses in the tourism industry, ranging from a minimum of R10 000 to a maximum of R5 million. A fund of R50 million has been ring-fenced specifically for the iKwezi Tourism Facility, which is managed by a dedicated team at Tourism Enterprise Partnership.
The Ikwezi Tourism Facility propels TEP to the next level of innovation by making it the only tourism SMME development organisation in the country which, in addition to normal business development support such as training, mentorship, and market access, is also able to provide access to finance.
Ikwezi Tourism Facility
This mutually beneficial relationship between sefa (Small Enterprise Finance Agency) and TEP (Tourism Enterprise Partnership) is a highly competitive facility that provides business finance to registered SMMEs in the tourism industry, including bridging finance such as short term financing to facilitate up-front contractual obligations; capital financing, such as the acquisition of new equipment and assets; and business expansion of current assets like buildings.
Ikwezi is a R50 million revolving credit facility exclusively reserved for TEP clients and is offered to all business owners, with preference given to Black, Women, Youth and Rural owned enterprises.
TEP has partnered with the (sefa) to develop an assistance facility which will provide financial support specifically tailored to the small tourism business. Loans ranging from a minimum of R10 000 to a maximum of R5 million will be available to qualifying enterprises.
The purpose for its establishment is to fund SMMEs in the tourism sector. The funding consists of R45 million business loans to entrepreneurs; Loan sizes of between R10 000 to R5 million offered for up to five years; R2 million business support e.g. mentoring and training support for the entrepreneurs R3 million Institutional strengthening support to enable TEP to set-up operational functionality for the facility.
The ikwezi Tourism Facility is a financing facility available exclusively to TEP registered clients. Repayment terms range from 3 months to 5 years. Interest rates charged range from prime plus 1.60% to 3.60%, substantially lower than commercial banks.
TEP clients may approach ikwezi for Bridging Finance, Capital equipment
finance, and business expansion finance. TEP will perform the technical due diligence of applications.
Each application will be individually assessed on its own merits. The key qualifying criteria are as follows:
• Registered tourism SMMEs must be controlled by a majority of South African Citizens with valid South African Identity Documents;
• The facility is open to all races with specific emphasis on women and rural/peri-urban areas;
• Applicants must be registered clients who have paid their annual administration fee of R600 (plus VAT) and/or any other commitment fees where applicable;
• All tourism business operations, including but not limited to projects, programmes or enterprises, must be operated within South Africa; and
• The enterprise must be compliant with generally accepted corporate governance practices appropriate to the client’s legal status.
At DTC we understand the complexities of the various funding agencies and the unique application criteria for each. We have assisted thousands of entrepreneurs through the application process to access funding for businesses, and we can assist you with the same.
Contact us for more information on funding through the iKwezi Tourism Facility