Lusaka, Zambia July 23, 2019—IFC, a
member of the World Bank Group, today announced a loan to Protea Hotels
Zambia, a subsidiary of conglomerate Union Gold Zambia, to build and operate
a hotel and conference center in the outskirts of Lusaka. The new hotel
will help meet the growing demand for business infrastructure in Zambia,
while creating jobs for youth and opportunities for hotel services and
The Protea hotel will provide 249-rooms and
a large, multi-purpose event venue for up to 2,500 people. The hotel is
expected to employ around 300 persons and will source many of its goods
and services locally from Zambian businesses. The hotel will be managed
under a Protea Hotels by Marriott franchise agreement, training local staff
in global best practices on hospitality. Protea Hotels is one of Marriott’s
30-plus brands, and widely recognized in Africa’s hospitality sector.
There are close to 100 Protea hotels in nine countries, namely South Africa,
Zambia, Nigeria, Namibia, Ghana, Tanzania, Uganda, Malawi, and Algeria.
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.
“The Zambia tourism market has grown from
the first time we invested in the Protea Hotels franchise,” said Mark
O'Donnell, Chairman of Union Gold, which owns the Protea Hotels franchise
in Zambia. “The journey was not easy but our desire to support local businesses
through investing in accommodation was the driving force behind our success.
With IFC support, we can offer Zambians and tourists alike good hotel accommodation
and a modern multipurpose event facility.”
More than 1 million tourists visited Zambia
in 2017, up from 362,000 in 1998. Diversification of the mining dependent
economy through tourism is a key strategy for the government.
“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 Kevin Njiraini, IFC Director for Southern Africa.
will complement its investment in Protea hotel with advisory services on
corporate governance and food safety. It will also help small and medium
enterprises integrate into the hotel’s supply chain. The hotel will incorporate
industry green building standards, leveraging IFC’s Excellence in Design
for Greater Efficiencies (EDGE) tool. EDGE helps property developers optimize
building designs, to maximize energy and water efficiencies that can save
money while conserving resources. EDGE is employed across the continent
by various companies.
The Protea project is part of IFC’s wide-ranging
support to Zambia’s private sector. IFC has invested close to $100
million in the country’s economy, in critical sectors like manufacturing,
banking, hospitality and agriculture.
IFC—a sister organization of the World Bank
and member of the World Bank Group—is the largest global development institution
focused on the private sector in emerging markets. We work with more than
2,000 businesses worldwide, using our capital, expertise, and influence
to create markets and opportunities in the toughest areas of the world.
In fiscal year 2018, we delivered more than $23 billion in long-term financing
for developing countries, leveraging the power of the private sector to
end extreme poverty and boost shared prosperity. For more information,
About Protea Hotels Zambia