This summary covers an investment by Tamboho International Ltd. of Mauritius in Tamboho S.A. in Madagascar. The investor has applied for a MIGA guarantee of $ 0.65 million for a period of up to six years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project consists of the development of a 30-room business hotel in the commercial district of Antananarivo, Madagascar’s capital city. This three-star hotel will be owned and operated by Tamboho S.A. of Madagascar, which is wholly owned by Tamboho International Ltd. of Mauritius.
The hotel will be located in the Tana Water Front and offer amenities for business travelers, including conference and leisure facilities. It will meet international standards and accommodate a steady growth in the number of business and leisure travelers to Madagascar. Rates have been increasing for the past few years at an average of 15 percent and Antananarivo is expecting a spike in the number of visitors as it prepares to host the African Union Summit in 2009 and the Francophonie Summit in 2010.
The project is a Category B under MIGA’s environmental review procedures.
The project is expected to have a demonstration effect as other hotels in Antananarivo will want to improve their own accommodations in order to remain competitive. It is expected that the hotel will generate local jobs as well as taxes for the government over the next five years. The hotel will also support the growth of related industries such as transportation, food and beverage providers, and tour operators.
This proposed project addresses three of MIGA’s priority areas: an investment in an IDA-eligible country, which is among the world’s poorest; an investment in an African country; and a South-South investment. The project will be underwritten through MIGA’s Small Investment Program.