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Kigali, Rwanda, October 15, 2007
—IFC, a member of the World Bank Group, and DEG, a member of KfW Bankengruppe, today announced that they will invest in Tourism Promotion Services Rwanda, owner of the country’s Serena Hotels. The $12 million investment will help improve business and tourism infrastructure in Rwanda, contributing significantly to economic growth.
Tourism Promotion Services Rwanda has signed a 30-year lease agreement with the government to manage and operate the Kigali Serena and the Lake Kivu Serena hotels. The company will use the funds to finance the lease, rehabilitate the two hotels, as well as expand the Kigali Serena.
Demand for hotel accommodation in Rwanda is growing rapidly due to increased foreign aid and a better business environment, as well as tourist attractions and the country’s popularity as a meeting and conference destination. The current shortage of quality accommodations hinders the country’s economic development. The IFC-DEG investment will help address the supply-demand imbalance.
Tourism Promotion Services Rwanda is a subsidiary of the Aga Khan Fund for Economic Development, which has a solid reputation and extensive experience working in the tourism sector in Africa and Asia. The fund operates 28 Serena hotels, resorts, and safari lodges through its subsidiaries in Afghanistan, Kenya, Mozambique, Pakistan, Rwanda, Tajikistan, Tanzania, and Uganda.
“This investment will contribute to developing a sustainable tourism industry in East Africa,” said Jan Mohamed, Managing Director of Tourism Promotion Services.
“Several value-added programs will complement the investment, enhancing the development impact of the project significantly,” said Dimitris Tsitsiragos, IFC Director for Global Manufacturing and Services. “IFC’s role reflects our commitment to promoting and supporting Rwanda’s nascent tourism industry.”
“The project will provide extensive training in hotel management and create more jobs, helping sustain employment and improve standards in the country,” added Hubertus Graf von Plettenberg, First Vice President of Manufacturing and Services at DEG.
About IFC
IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s vision is that poor people have the opportunity to escape poverty and improve their lives. In FY07, IFC committed $8.2 billion and mobilized an additional $3.9 billion through loan participations and structured finance for 299 investments in 69 developing countries. IFC also provided advisory services in 97 countries. For more information, visit
www.ifc.org
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About DEG
DEG, a member of KfW Bankengruppe, is one of the largest European development finance institutions. For more than 40 years, the company has been financing and structuring the investments of private companies in developing and emerging market countries. DEG invests in profitable projects that contribute to sustainable development in all sectors of the economy. To date, it has worked with more than 1,300 companies, providing a total of EUR 7.7 billion and mobilizing more than EUR 50 billions. For more information, visit
www.deginvest.de
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