SA government launches R1,2 billion tourism fund
President Cyril Ramaphosa announced that government will launch a tourism equity fund of more than R1,2 billion with the aim of providing grant funding and debt finance. The goal of the fund is to accelerate the pace of transformation goal achievement and qualifying businesses have been urged to apply as soon as possible.
The fund was created by the Department of Tourism in collaboration with the Small Enterprise Finance Agency, which forms part of the Department of Small Business Development. The fund is seen as a ground-breaking venture with the intention of speeding up transformation in one of South Africa’s most crucial sectors, especially during a time when the industry faces considerable challenges with the impact of the Covid-19 pandemic.
IMF anticipates global economic growth due to vaccines
With the rollout of vaccines and policy support in larger global economies, global growth is expected to expand by 5,5% up from 5,2%, according to the projections made by the IMF in October.
South Africa’s contraction of -8% has also been revised for 2020 to -7,5%. In addition, South Africa is expected to rebound to 2,8% during 2021. However, recovery across various countries and the strength thereof is set to vary, depending on access to medical interventions and the effectiveness of policy support, among several other factors.
Eskom plans to change tariff structures
Eskom has presented a new plan to the regulator to make changes to its electricity tariff structures, which could lead to considerable changes to both businesses and households. The tariff changes aim to reduce inadvertent cross-subsidies, and to update and modernise the fee structure. Eskom’s plan includes a move away from incline block tariffs, changes to time-of-use tariffs, substantial changes to municipal tariffs, and a new way to calculate the rate at which electricity is bought from small producers feeding electricity into the grid.