Lusaka/Washington, D.C., May 14, 2007—IFC,
the private sector arm of the World Bank Group, today announced it will
invest in Protea Arcades Ltd, a subsidiary of the Union Gold (Zambia) Ltd,
to help meet the growing demand for quality accommodation in Zambia’s
capital city, Lusaka.
Union Gold will use the $1.8 million loan to build and operate the Protea
Arcades Hotel, a four-star 100-room hotel with two large conference facilities.
It will be located at the popular Arcades Mall, along the road connecting
Lusaka’s international airport with the central business district.
“The collaboration between Union Gold and IFC will help address the shortage
of affordable hotel accommodation in Lusaka and stimulate the hotel and
retail sectors,” said Mark O’Donnell, Managing Director of Union Gold.
“This transaction expands our strong ongoing partnership with IFC and
the continued benefit of the global expertise and standards it brings to
The project is IFC’s third with Union Gold. IFC in 1997 financed Union
Gold’s Protea Safari Lodge and in 2001 invested in the Protea Chingola
Hotel, both also in Zambia.
“IFC is committed to encouraging long-term partnerships with clients to
help them expand their business success and contribute more to economic
development,” said Thierry Tanoh, IFC’s Director for Sub-Saharan Africa.
“This transaction helps Union Gold create jobs and opportunities in an
important sector of Zambia's economy.”
“IFC is eager to expand our support to the Zambian businesses that are
committed to good practices and that can benefit from our global expertise
in implementing them,” said Dimitris Tsitsiragos, IFC’s Director for
Global Manufacturing and Services. “Union Gold is developing this hotel
to a high standard that can be a model for the domestic tourism sector.”
IFC, the private sector arm of the World Bank Group, promotes open and
competitive markets in developing countries. IFC supports sustainable
private sector companies and other partners in generating productive jobs
and delivering basic services, so that people have opportunities to escape
poverty and improve their lives. Through FY06, IFC committed more than
$56 billion in funding for private sector investments and mobilized an
additional $25 billion in syndications for 3,531 companies in 140 developing
countries. IFC Advisory Services and donor partners have provided more
than $1 billion in program support to build small enterprises, to accelerate
private participation in infrastructure, to improve the business enabling
environment, to increase access to finance, and to strengthen environmental
and social sustainability. For more information, please visit www.ifc.org.
About Union Gold
Union Gold (Zambia) Limited was established
in 2000 as a holding company to consolidate the separate business interests
of its shareholders. It has a spectrum of interests in trading, retail,
manufacturing, and tourism. Union Gold is also part of a joint venture
in the establishment of Spar in Zambia.