SUMMARY – AFRICAN HOTELIERS TAKE CHARGE TO SECURE FINANCING AMID PERCEPTION BIAS, AS AFRICA IMPORT EXPORT BANK OFFERS BETTER TERMS.
The African hoteliers faces a challenging situation, particularly in the realm of finance. For decades, the greater international banking community has held a biased perception that conducting business in Africa carries inherent risks.
However, rather than passively waiting for the world to rectify this perception and for external lenders to catch on, hoteliers in Africa are proactively seeking their own financing solutions.
Options at the Atlantic Ocean Hotel Investors’ Summit
At the Atlantic Ocean Hotel Investors’ Summit held in Madrid, a panel discussion focused on Africa shed light on the various avenues available for completing deals and launching projects in the hotel industry.
Jean-Louis Ekra, the founder of Ayipling Morrison Capital, an investor based in Abidjan, Ivory Coast, highlighted the initiatives taken by financial institutions like the Africa Import Export Bank. These institutions have introduced specialized lending vehicles designed to support African hotel and tourism developments with improved terms and increased alignment.
Furthermore, banks have started to address the challenges associated with construction risk. Recognizing the high level of risk involved, measures have been put in place to manage and mitigate this risk, according to Ekra.
Overall, Africa’s hotel industry is actively seeking alternative financing options and collaborating with institutions that are willing to provide better terms, ultimately paving the way for sustainable growth and development in the sector.