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, the DBSA said in statement on Thursday.
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 $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 % of the company.
The second component, a loan of $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% 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.
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.
I-Net Bridge
Publisher: I-Net Bridge
Source: I-Net Bridge
