PROPARCO supports Kenyan tourism with $20m loan
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PROPARCO has allocated a $20m loan with a 10-year maturity to TPSEA Group, a leading player in East Africa’s tourism industry, to support the development of its infrastructure in Kenya.
PROPARCO has allocated a $20m loan with a 10-year maturity to TPSEA Group, a leading player in East Africa’s tourism industry, to support the development of its infrastructure in Kenya.
This operation will contribute to financing the extension and refurbishment of Serena Nairobi, a high-end hotel with over 180 rooms.
Claude Périou, CEO of PROPARCO, said: “PROPARCO is extremely pleased to be supporting TPSEA Group’s development once again.”
“This operation underscores the strong links that unite TPS Group, its reference shareholder AKFED, and PROPARCO for the development of responsible and sustainable tourism in Sub-Saharan Africa. It will allow the group to maintain a range of high-quality services and reaffirm its role as a leading player in the tourism industry in the region,” he added.
The investment project comprises the construction of a conference center, new catering areas, and the upgrading of rooms.
TPSEA has been operating over twenty hotels in five East African countries since the 1970s under the Serena label.
The group has traditionally contributed to creating a range of high-quality hotel facilities, while basing its development on a strong commitment to social and environmental responsibility.
Its product range is in line with the highest international standards in the industry.
This financing is part of PROPARCO’s strategy to support the development of tourism in Sub-Saharan Africa.
Africa holds significant tourism potential and rapid development can be expected.
The income generated by tourism has risen sharply over the past decade: the revenues of hotels, excursions and other attractions stood at over $36bn in 2012 and directly contributed to just over 2.8% of the region’s GDP, according to the World Bank report.
PROPARCO is a development finance institution jointly held by Agence Française de Développement (AFD) and public and private shareholders from the North and South.
PROPARCO finances investments that are economically viable, socially equitable, environmentally sustainable and financially profitable.