Tuesday, May 28, 2024

IFC invests US$9 million to construct a new Protea Hotel in Lusaka

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The International Finance Corporation has announced that it would contribute $9-million towards the construction of a hotel and conference centre on the outskirts of Lusaka.

Being built by Protea Hotels Zambia, the new hotel will help meet the growing demand for business infrastructure in Zambia, while creating jobs for the youth and opportunities for hotel services and goods providers.

The hotel will have 249 rooms and a large, multipurpose event venue for up to 2 500 people.

The hotel is expected to employ around 300 people and will source many of its goods and services locally from Zambian businesses, while being managed under a Protea Hotels by Marriott franchise agreement, training local hospitality staff in global best practices on hospitality.

The total project cost is $30-million.

“The Zambia tourism market has grown from the first time we invested in the Protea Hotels franchise,” said Union Gold chairperson Mark O’Donnell.

Union Gold owns the Protea Hotels franchise in Zambia.

He added that, while “the journey was not easy”, the company’s desire to support local businesses through investing in accommodation was the driving force behind the success of the project. Union said it could, with the IFC’s support, offer Zambians and tourists alike “good hotel accommodation and a modern multipurpose event facility”.

IFC Southern Africa Director Kevin Njirani said the hospitality sector could create jobs, generate tax revenues for governments and bring business to entrepreneurs in emerging economies like Zambia.

“The hospitality sector can create jobs, generate tax revenues for governments and bring business to entrepreneurs in emerging economies like Zambia. IFC’s investment and advisory services to the Protea Hotel will help build new business infrastructure and conference facilities for investors, as well as integrate the hospitality value chain in Zambia,” said Mr. Njiraini.

IFC will complement its investment in Protea hotel with advisory services on corporate governance and food safety and will also help small and medium-sized enterprises integrate into the hotel’s supply chain.

The Protea project is part of the IFC’s wide-ranging support to Zambia’s private sector. Overall, the IFC has invested close to $100-million in the country’s economy, in critical sectors like manufacturing, banking, hospitality and agriculture.
The brand is classified as mid-market by international standards.

IFC is contributing $9 million towards the financing of the hotel, out of a total project cost of $30 million.

More than 1 million tourists visited Zambia in 2017, up from 362,000 in 1998.

The Protea project is part of IFC’s wide-ranging support to Zambia’s private sector.

The IFC also injected $1.8 million loan to build Protea Arcades Hotel, a four-star 100-room hotel near Arcades Mall.

That was the third project that IFC was partnering with Union Gold.

IFC in 1997 financed Union Gold’s Protea Safari Lodge and in 2001 invested in the Protea Chingola Hotel.

12 COMMENTS

  1. And how much was that 1 building “state of the art”, “super ultra modern” empty warehouse? Was it $15 millions?

    • In Zambia a million dollars is like nothing when it comes to public contracts ..if a hotel that has in-suite 249 rooms with flat screens TVs and a large, multipurpose event venue for up to 2 500 people is costing $9million …how can a large shed storing medicine be costing $15 million and its not a refrigerated warehouse but ambient temperature. Zambians need to wake up…we are losing alot of money due to corruption!

  2. If its not a shopping mall its a hotel…when are we going to see tangible investments like manufacturing factories. I mean these hotels just externalize money

    • Tourism infrastructure like hotels and conference facilities are “tangible investments.” Tourism creates lots more jobs per capita of investment than factories.

    • How many hotels are in Lusaka? Too many…there is no skilled jobs created from hotels, most of these brand hotels like Protea get their own managers from Headquarters in SA…let me draw you a picture with crayons so you understand when an American tourist pays for a packaged safari from their agents that includes tour for Luangwa National Park they simply pay in RSA this hotel when they come for their holiday you foools get nothing most tourists nowadays dont even carry money as everything is paid for …this is why I compare these to shopping Malls that are owned by South Africans buy from SA employ SA Executive what do you think you benefit from them? Think Think in your thick shells!!!!!!!!

    • Zambia is not an attractive place for manufacturing; high taxes, strong and disruptive unions, and high wages compared to say China or Vietnam. The way forward is the service industry.

  3. stop building them hotels in Zambia. Zambia is a Christian nation. these hotels are promoting homosexuality.
    lmfao!

  4. “He added that, while “the journey was not easy”, the company’s desire to support local businesses through investing in accommodation was the driving force behind the success of the project.”

    This Article argues that we need to develop a service- able notion of ‘democratic affordances.

    Even if not agreeing with the surroundings or conditions in which affected by political environment activities.

  5. I’m in favour of developments that bring jobs to the people and tourists to the country, but friends we must not be dazzled by the size of the investment ($30 m); how much of that money will stay in Zambia and how much will leave with the western businessmen who are ultimately just exploiting Zambia?

    We need ethically-conscious tourists who do not care so much for fancy hotels and would rather see the real Africa and learn about how ordinary Africans live, and who will bring money to Zambia that will stay in Zambia. That is the real future of the tourism industry in Zambia, and that is what we should work towards.

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