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					Zambia’s Livingstone Hotel gets a US$9.5 million boost from DBSA

03 May

The Development Bank of Southern Africa (DBSA) is set to invest US$9.5-million towards the
revamping of the four-star David Livingstone Hotel in Livingstone, along Zambia’s Zambezi River.
The initiative forms part of the Bank’s drive to increase the capacity of the Zambian tourism
industry and to promote greater participation of domestic tourism. According to DBSA’s
investment officer on the project, Zodwa Lekubu, the Bank’s investment support for the project is
split into two components.

The first component – a loan of US$8-million to the project, The Waterfront Limited, will finance
the expansion of the David Livingstone Safari Lodge. This includes the construction of a four-star
hotel with 72 rooms, main public areas and a swimming pool. The existing conference facilities
will also be refurbished in line with global standards. Part of the loan will be used for an
Employee Shareholder Trust to provide employees with an opportunity to own 9.9 percent of the
company.

The second component - a loan of US$1.5-million to the project sponsor, Consolidated Tourism
Investments Ltd (CTI) – will be used to facilitate an empowerment transaction that will see a local
empowerment group, Madison Insurance Company, acquire a 30 percent shareholding in CTI.
“The proposed empowerment transactions at both the project and sponsor company level come
at an opportune time as empowerment of local Zambians has become a top priority for the
Government of Zambia.
“DBSA is proud to be playing a leadership role in this project as it is closely aligned to
government’s objectives and promotes greater participation in the Zambian tourism industry by
local people,” says Lekubu.
In addition to providing wealth creation opportunities for employees through their participation in
the ownership structure, the project will further boost the local economy by generating much-
needed work opportunities for local contractors and labourers during the construction phase.
Once completed, about 65 new permanent jobs will be created at the lodge.
Lekubu points out that the new hotel is a response to the need for additional accommodation in
the three to five star categories, as well as the growing demand for conference facilities in the
Copperbelt, Lusaka and Livingstone areas. Zambia is becoming a sought-after tourist destination
in the region. Livingstone itself is becoming an increasingly popular destination for tourists
because it is situated close to the majestic Victoria Falls and offers a range of leisure activities
and world class shopping malls.
“As such, increasing the capacity of the tourism sector, particularly in Livingstone, is necessary to
service the growing number of tourists and business travellers,” says Lekubu.
According to Lekubu, DBSA sees its role in the project as more than just that of a financier.
“DBSA strives to maximise the developmental impact of the projects it supports by being closely
involved in their implementation. In fact, our emphasis on partnerships underpins everything we
do because we believe that development is created through cooperation with others.”
“By working together and sharing resources we can produce real, tangible development impact
which makes a meaningful contribution to the lives of the people in southern Africa. As such,
DBSA is committed to its role of financier, advisor, strategic partner, implementer and integrator
to the Waterfront Limited, CTI and its shareholders,” she concludes.


                                               Ends

Editorial Contacts:
Nomia Machebe
External Communications Specialist
Development Bank of Southern Africa
Cell: 082 317 5547
E-mail: nomiam@dbsa.org

				
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posted:8/17/2012
language:English
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