Embed Size (px)
Citation preview
PROGRAMME GUIDELINESTOURISM TRANSFORMATION FUND
2. BACKGROUNDThe Tourism Transformation Fund is a development fund established by the Department of Tourism in collaboration with the National Empowerment Fund (NEF) as a pilot project to provide financial support for black investors and communities investing in projects in the tourism sector. The main aim of the fund is to drive transformation in the tourism sector and catalyse the rise of a new generation of black-owned community, youth and women owned tourism enterprises.
The TTF is managed by the NEF, and is capitalised by the Department of Tourism to the tune of R40 million annual grant funding, over a period of three financial years up to 2020. The grant funding will be used to reduce the funding gap that may exist between the prospective investor’s own contribution and the approved loan finance and/or equity contribution by the NEF for tourism projects. The grant component will be capped at a maximum of R5 million per successful applicant to unlock investment in the tourism sector by qualifying black-owned small and micro tourism enterprises.
The fund will focus specifically on:
• majority black owned tourism entities and transactions that are commercially viable and sustainable, as per the results of the due diligence processes of the NEF;
• Unlocking investment support in the
tourism sector for new and established (greenfield and brownfield) small and micro black-owned tourism enterprises that provide services to tourists as its direct clients; and
• Majority Black owned community – based projects in which the Department of Tourism is already involved through its Expanded Public Works Programme (EPWP) for which commercial viability and long term sustainability have been proven.
3. STRATEGIC OBJECTIVES OF THE TOURISM TRANSFORMATION FUND
The strategic objectives of the TTF are to:
• facilitate transformation within the tourism sector by providing access to funding support through a combination of debt, equity and grant funding to black investors in the tourism sector;
• develop the tourism sector by providing financial support to eligible projects with preference for projects that stimulate empowerment, destination development, job creation and tourism skills development;
• reduce the funding gap that may exist between the prospective investor’s own contribution and the conditionally approved financing by the NEF; and
• encourage the development of innovative, commercially viable and sustainable tourism projects.
1. PREAMBLE The purpose of this document is to provide guidance to applicants submitting proposals for funding consideration under the Tourism Transformation Fund (TTF). Funding approval will be granted for projects in line with the strategic objectives of the fund.
4. ELIGIBILITY CRITERIATTF funding applications must adhere to the following:
4.1 Submission of a duly completed and signed NEF application form and TTF checklist together with related supporting documents as per NEF requirements;
4.2 Proven commercial viability and sustainability as per the NEF due diligence;
4.3 The Enterprise must be at least majority (51%) black-owned;
4.4 The enterprise must be black management controlled;
4.5 Shareholders must be operationally involved in the business;
4.6 Enterprises must be registered as a legal entity in South Africa in terms of South African law;
4.7 The enterprise must either be a black-owned Exempted Micro Enterprise (EME) or black-owned Qualifying Small Enterprise (QSE) in terms of the Amended Tourism Broad-Based
Black Economic Empowerment (B-BBEE) Sector Code.
4.8 Enterprises that provide services to tourists as its direct clients.
4.9 The grant funding is applicable to greenfield and brownfield transactions in the tourism sector;
4.10 An applicant may be required to contribute a reasonable percentage of the total funding applied for as own contribution10% of the total funding application.
5. OTHER CONDITIONS In assessing applications for support, the debt/equity portion of funding will be in line with NEF limits, while the grant portion of the funding is capped at R 5 million per successful applicant.
In the case of merger and/or acquisition transactions funded through the NEF, the grant portion of the funding applied for will be limited to financing working capital only and will not be used towards the purchase price of the assets and/or business.
In the case of majority Black owned community-based projects in which the Department of Tourism is already involved through its Expanded Public Works Programme (EPWP) for which commercial viability and long term sustainability have been proven, the grant portion of the funding applied for will be limited to financing specified working capital only and will not be used towards capex.
6. ADJUDICATION PROCESSDuring the adjudication of applications that have passed the due diligence assessment, preference will be given to:
• projects in which the department is already involved (e.g. EPWP community-based projects, destination development projects, etc.);
• projects that have significant ownership and participation by black women, youth, communities and people with disabilities; and
• projects with a high job creation potential.
7. APPLICATION PROCEDURE The following documents must be submitted for each TTF application:
• a completed and signed NEF application form together with a business plan, financial projections and related supporting documents; and
• a completed and signed TTF application checklist.
Applications must be submitted to the NEF:
• Physical applications may be delivered to; West Block, 187 Rivonia Road, Morningside, 2057, Johannesburg
• Electronic submissions and enquiries may be sent to [email protected]
The application form and checklist may be obtained on the NEF website at www.nefcorp.co.za
Note: Incomplete submissions will not be considered for funding.
8. POST INVESTMENT MONITORING AND SUPPORT All post investment monitoring and support services will be provided by the Post Investment Unit of the NEF in conjunction with the Department of Tourism.
9. CONTACT DETAILS The National Empowerment Fund West Block 187 Rivonia Road Morningside 2057 Johannesburg
The National Empowerment Fund P.O. Box 31 Melrose Arch Melrose North 2076
Telephone: +27 (11) 305 8000 or +27 (86) 184 3633
Email: [email protected] Web: www.nefcorp.co.za
1
Tourism Transformation Fund Checklist
INFORMATION REQUIRED FOR TOURISM BUSINESS FINANCE
(THIS INFORMATION MUST BE SUBMITTED WITH A DULY COMPLETED AND SIGNED
NEF APPLICATION FORM)
Tick if complete/NA
1. Signed Application Form
2 Land ownership structure (lease or owned)
3. Copy of Bank Statements for the past 6 months (for an existing business)
4 Financials
4.1 Copy of the financial statements (for existing business) – for three years if
the business has been operating for that long.
Copy of recent management accounts (for an existing business)
Copy of recent management accounts (for an existing business)
New business; 5 year forecast balance sheet, income statement and cash
flows statement.
First year projections should be reflected on a monthly basis and annually
thereafter.
5 Town Planning Approvals and Environmental Authorizations
5.1. Approval of the building plans.
Zoning of the property.
EIA completed and approved ROD, if applicable / confirmation that the
proposed set-up / development is exempt.
Source of water. Borehole drilling or municipal supplied water.
Adequate allocation of the electricity.
6. Lodge / Property Feasibility
6.1. Market assessment and area performance (occupancy and competition).
2
Investment required and application.
Infrastructure development costs and capex required (renovations included).
QS Preliminary estimates.
Proposed Gearing (overall Debt: Equity must be structured at 60% debt and
40% equity).
Loan Repayment Schedule.
7. Property Management & Marketing Strategy
7.1. Star rating and target market.
Self-Marketed and Managed or Independently Marketed and Managed.
Marketing strategy.
Property management profile and their experience in the sector. In case of
self-management CV to be attached.
8. Professional Team
Developer
Architect
Project Manager & Principal Agent
Quantity Surveyor
Structural Engineer
Civil Engineer
Electrical Engineer
Wet Services Engineer
Fire Engineer Company
Traffic Engineer
Land Surveyor
9. Describe the nature of the business.
10. Describe shareholding structure- who are the shareholders.
SIGNED ON BEHALF OF:
(NAME OF ORGANISATION)
NAME AND SURNAME :
DESIGNATION :
SIGNATURE :
DATE :
3
NB:
THE COMPLETION AND SUBMISSION OF THIS CHECKLIST IS NOT THE
COMPLETION OF THE NATIONAL EMPOWERMENT FUND APPLICATION FORM.
PLEASE SUBMITT A DULY COMPLETED AND SIGNED NEF APPLICATION FORM AS
PART OF YOUR APPLICATION.
CONTACT DETAILS
Ms Mpume Majola
Client Liaison Manager
011-305-8132
Ms Nyameka Mandonda
Socio, Supplier and Enterprise Development
Specialist
011-305-8195
FOR OFFICE USE ONLY
Date Received:
Name & Surname:
Signature:
( NEF STAMP)
THE NEF APPLICATION FORMR250 000 - R75 million
The NEF will not consider applications that do not comply with all current RSA legislation pertaining to the operations of a business, including but not limited to, all tax and corporate governance laws/principles. Where appropriate the NEF may report such cases to the relevant authorities.
Please complete this application in full with all the required information, including a comprehensive business plan proposal and the required financials as described below. Where the information requested is not applicable please write “Not Applicable” or “N/A”. Incomplete applications will not be accepted. All business plan proposals declined by the NEF or withdrawn by the applicant, will not be kept on our records, please do not submit master/original documents. THIS FORM IS FREE AND NO FEES ARE PAYABLE TO THE NEF OR ANY OTHER PERSONS FOR THE COMPLETION OR ASSISTANCE WITH THIS APPLICATION FORM. To view the electronic format please visit: www.nefcorp.co.za
THE NEF APPLICATION FORMR250 000 - R75 million
DIRECTORs/MEMBERs INTEREsT
Name *BEE/Non-BEE Male/Female ContributionShareholding %
(Pre-NEF funding)
Shareholding %
(Post-NEF funding)
TOTAL
* “Black people” are, African, Coloured and Indian natural persons who are citizens of the Republic of South Africa by birth or by descent as well as natural persons who acquired citizenship by naturalisation prior to 27 April 1994.
FOR OFFICE USE ONLY
Date of original application:
Reference number:
Product type:
D D M M Y Y Y Y Resubmission
Entrepreneurship finance
Procurement finance
Expansion capital
Franchise finance
Rural and community development
Strategic project fund
Acquisition finance
New ventures
Start-up/new:
Existing:
Years in existence:
Name of business:
Physical address and province:
Postal address:
Business tel. number:
Business fax. number:
Business Location:
Finance required: (Rands)
Stage of business:
Type of industry:
Key contact person:
Key contact person’s number:
Email address:
Rural Urban Peri-Urban
BUsINEss DETAILs
APPLICANTs DETAILsSurname:
BEE classification
Name:
Identity number:
Cellphone:
Email address:
Mr Mrs Miss
A C I W
Surname:
BEE classification
Name:
Identity number:
Cellphone:
Email address:
Mr Mrs Miss
A C I W
Surname:
BEE classification
Name:
Identity number:
Cellphone:
Email address:
Mr Mrs Miss
A C I W
BEE Non-BEE
BEE Non-BEE
BEE Non-BEE
BEE Non-BEE
BEE Non-BEE
Details Male Female Total Male Female Total Grand Totals
Shareholding ownership (%)
Senior Management
Non-Managerial Staff
Temporary Staff
Grand Totals
R
OPERATING ENTITY:
Purpose of Finance: (Rands):
Business acquisition:
Asset acquisition:
Working capital:
Start-up: (Additional set-up costs)
Bridging finance:
Total Funding Requested
AVAILABILITY OFTHE FOLLOWING:(Indicate by X)
Accounting Officer:
DOCUMENT AND INFORMATION CHECKLIST
Please provide us with the applicable documents as outlined below;
Existing Business
Start-up Business
1 Application form and Business plan • •
2 Affidavit from members or directors that they are aware of the contents of the application form •
3 Three (3) year audited financials (Income Statement, Balance Sheet, Cash Flow Statement) •
4Five (5) year financial projections (Income Statement, Balance Sheet and monthly Cash Flow Statement) with first year prepared on a monthly basis
• •
5 Recent management accounts (Income Statement and Balance Sheet) •
6Personal Statements of Assets and Liabilities of all the members or directors including those of spouses if person is married in Community of Property
• •
7 Business bank statements for the past twelve (12) months •
8 Certified ID copies of all members or directors • •
9 Registration Documents and all the relevant legal documents relevant to the entity • •
10 Detailed profile of the Franchisor • •
11 Details of why the business is for sale •
12 Sale Agreement •
13 Franchise Agreement • •
14 Historical financials of other franchises that are similar in size and in similar locations • •
15 Indication from the Franchisor of how much a new Franchise in a similar location would cost • •
16Indication of whether the lease agreement will be ceded to the new company after the sale or a new lease agreement will be signed If lease is ceded, how long will it still run for before renewal? New lease if it is a new franchise.
• •
17 The prospective buyer must have been approved by the franchisor •
18 Fica compliance - Proof of residence • •
19 Detailed CV of principle Applicant • •
BUsINEss PLAN GUIDELINEs AND INFORMATION CHECKLIsTPLEASE NOTE THAT THIS SECTION ONLY PROVIDES GUIDELINES TO ASSIST YOU WITH COMPILING A BUSINESS PLAN THAT MEETS THE NEF’S MINIMUM INFORMATION REQUIREMENTS AND DOES NOT REQUIRE ALL SUBMISSIONS TO FOLLOW THIS FORMAT. ALL OTHER BUSINESS PLANS WILL BE ACCEPTED PROVIDED ALL THIS INFORMATION HAS BEEN SUFFICIENTLY COVERED IN THOSE PROPOSALS.
NB: • AN APPLICATION WILL BE REJECTED IF YOU DO NOT SUBMIT ALL THE DOCUMENTS AS PER THE ABOVE LIST AND GUIDELINES. • PROVIDE ALL OTHER DOCUMENTS RELEVANT TO YOUR BUSINESS NOT LISTED ABOVE. • OUR APPLICATION PROCESS IS APPROXIMATELY 3 TO 4 MONTHS FROM THE RECEIPT OF THE APPLICATION UP TO DISBURSEMENT STAGE.
RISK AND COMMERCIAL VIABILITY ANALYSIS
Sales in units
Sales in Rands
Less: Cost of sales
Raw material a
Raw material b
Direct labour
Gross profit
Less: Operating expenses
Accounting and auditing fees
Advertising
Depreciation
Distribution cost
Equipment leases
Insurance
Interest
Motor vehicle expenses
Office expenses
Other expenses
Printing and stationery
Rental, electricity, water
Salaries and wages
Directors’ salaries
Security costs
Telephone
Income/(loss) before tax
Income tax
Income/(loss) after tax
HISTORICAL PROJECTED/FORECAST
Year-3 Year-2 Year-1 Year-1 Year-2 Year-3 Year-4 Year-5
ASSETS
Fixed assets
Land and buildings
Motor vehicles
Furniture and fitting
Machinery and equipment
Other
Current assets
Debtors
Stock
Cash surplus/(deficit)
Total assets
EQUITIES AND LIABILITIES
Capital and reserves
Share capital
Shareholders’ loan
Retained income
HISTORICAL PROJECTED/FORECAST
Year-3 Year-2 Year-1 Year-1 Year-2 Year-3 Year-4 Year-5
Non-current liabilities
Term loan
Other loan
Current liabilities
Creditors
Bank overdraft loan
Total equity and liabilities
Debtors’ days
Creditors’ days
HISTORICAL PROJECTED/FORECAST
Year-3 Year-2 Year-1 Year-1 Year-2 Year-3 Year-4 Year-5
CASH FLOWS
FROM OPERATING ACTIVITIES
Net profit before taxation
Adjustments for:
Depreciation, amortisation
Interest paid
Interest received
(Increase)/decrease in debtors
Increase/(decrease) in creditors
(Increase)/decrease in stock
Cash generated from operations
Interest paid
Dividends paid
Preference dividends (paid)
Income taxes paid
Net cash from operating activities
CASH FLOWS FROM OPERATING ACTIVITIES
Capital expenditure
Interest received
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds on issue of shares
Proceeds on disposal of fixed assets
Holding company loan
Preference shares
Nedbank long-term loan
Net cash used in investing activities
Net change in cash Cash equivalent at beginning of period Cash equivalent at end of period
RATIOS
Gross margin
Net margin
Current ratio
Debtors’ days
Creditors’ days
Stock days
Debt to equity ratio
Interest cover
HISTORICAL PROJECTED/FORECAST
Year-3 Year-2 Year-1 Year-1 Year-2 Year-3 Year-4 Year-5
Page 7
National Empowerment Fund Trust (established by Act 105 of 1998) IT: 10145/00. A member of the dti group | www.nefcorp.co.za | www.nefbusinessplanner.co.za
Head OfficeGauteng ProvinceWest Block, 187 Rivonia Road, Morningside 2057, PO Box 31, Melrose Arch, Melrose North 2076Tel: +27 (11) 305 8000 | Fax: +27 (11) 305 8001 | Call Centre: 0861 843 633 | 0861 (THE NEF)[email protected] (Funding) | [email protected] (General Enquiries)
Eastern Cape Province7b Derby Road, Berea, East London 5241Tel: (043) 783 4200 | 0861 NEF ECP (0861 633 327) | Fax: 0861 ECP NEF (0861 327 633)[email protected]
Free State Province34 Fountain Towers, Corner Zastron and Markgraaf Street, Westdene, Bloemfontein, 9300Tel: (051) 407 6360 | 0861 NEF FSP (0861 633 377) | Fax: 0861 FSP NEF (0861 377 633) [email protected]
KwaZulu-Natal ProvinceSmart X - Change Building, 5 Walnut Road, Durban, 4001Tel: (031) 301 1960 | 0861 NEF KZN (0861 633 596) | Fax: 0861 KZN NEF (0861 596 633)[email protected]
Limpopo ProvinceSuite 8, Biccard Park, 43 Biccard Street, Polokwane 0699Tel: (015) 294 9200 | 0861 NEF LIM (0861 633 546) | Fax: 0861 LIM NEF (0861 546 633)[email protected]
Mpumalanga ProvinceTrust Building, 16 Brander Street, Nelspruit, 1200Tel: (013) 754 9860 | 0861 NEF MPU (0861 633 678) | 013 754 9860 | Fax: 0861 MPU NEF (0861 678 633)[email protected]
North West Province32B Heystek Street, Sunetco Office Park, Ground Floor, Rustenburg, 0299Tel: (014) 523 9220 | 0861 NEF NWP (0861 633 697) | Fax: 0861 NWP NEF (0861 697 633)[email protected]
Western Cape ProvinceSuite 2818, 28th Floor, ABSA Centre, 2 Riebeek Street, Cape Town 8001Tel: (021) 431 4760 | 0861 NEF WCP (0861 633 927)Fax: 0861 WCP NEF (0861 927 633) | [email protected]
STOP Fraud, Corruption and TheftContact Tip-Offs Anonymous on 0800 212 705 or email [email protected]
If you suspect any irregularity in the application process
HOW TO REACH THE NATIONAL EMPOWERMENT FUND
Northern Cape
KwaZulu-NatalFree State
Gauteng
Western Cape
Eastern Cape
Limpopo
Mpumalanga
North West
