IFC Encourages Jobs, Investment through Hospitality Industry in Ethiopia

Posted by: PR Newswire Posted date : September 30, 2014 at 10:30 am UTC 120 views In: Press Releases

WASHINGTON, 30 September 2014 / PRN Africa / — IFC, a member of the World Bank Group, today announced its first hotel investment in Ethiopia, with a loan of $9.5 million to Ethiopian company Tsemex Global Enterprise, to develop
an international-standard hotel in Addis Ababa. The hotel will create over 300 local jobs, many for women and the youth, while helping meet growing demand for business infrastructure as Ethiopia's economy expands. Local entrepreneurs who provide food, transport and other general services will also benefit from the hotel.

InterContinental Hotels Group will manage the Addis Ababa hotel, applying its global brand and expertise to local staff and suppliers. The hotel will provide 210 rooms, conference facilities, restaurants and meeting venues.

IFC's first hospitality investment in Ethiopia comes as the economy has achieved a decade-long growth rate exceeding 10 percent. There is increasing need for services to accommodate demands of investors with growing interest in the country's agriculture, minerals and manufacturing sectors. Addis Ababa is the regional hub for the United Nations and the African Union, with Ethiopian Airlines providing global flight links. The new hotel will help address the shortage of rooms, tourist and business
facilities.

Rezene Ayalew, Managing director of Tsemex Global Enterprise said “Addis Ababa has great potential for tourism but is currently under-supplied in catering to business travelers. As our first hotel project; Tsemex chose the InterContinental Hotels brand to build traveler confidence. By partnering with IFC, we will benefit from financial support, and IFC's international expertise in environment and social standards”.

Tsemex is a leading importer and distributor of water-related equipment in Ethiopia, with businesses in trade, transport and construction activities.

Oumar Seydi, IFC Director for Eastern and Southern Africa said, “As investor confidence in Ethiopia grows, IFC seeks to support affordable hotels which will meet business needs. Hotels have wide-ranging impact on the economy by creating jobs, generating tax revenues and portraying a tourist-friendly image of countries.”

IFC has invested more than $2.5 billion in hotels since 1956. In Africa, an IFC study found that each hotel room creates up to three direct jobs. IFC is boosting its activities in Ethiopia, supporting infrastructure, agribusiness, small and medium businesses. In its fiscal year 2014, IFC invested $228 million in Ethiopia – making the country the highest recipient of IFC financing in Eastern Africa.
SOURCE International Finance Corporation (IFC)