On February 1, 2016, MIGA issued a guarantee of €2.3 million ($2.5 million equivalent) covering an investment by Azalai Hotels S.A of Mali in Azalai Hotel MARHABA in Mauritania. The coverage is for a period of up to 10 years against the risks of transfer restriction, expropriation, and war and civil disturbance.
The project consists of the renovation of the existing 64-room hotel MARHABA in Nouakchott, Mauritania’s capital. It is expected that the hotel will become a four-star hotel meeting international standards. The hotel is located in the central business district of Nouakchott in the Ksar neighborhood.
To sustain its economic growth, Mauritania needs secure, comfortable, and centrally located hotels to meet the increasing demand from business travelers. Moreover, through this South-South investment, the project supports the development of a chain hotel that will cater to the growing demand for business travel in the West African region.
The renovation is expected to create 115 new jobs. Local businesses such as farmers, taxi drivers, bakers, and room and clothes designers will also benefit from the project through the creation of approximately 900 indirect jobs.
MIGA’s support for the project is aligned with the World Bank Group’s Country Partnership Strategy for Mauritania, which emphasizes the important of private sector investment under the pillar of growth and diversification. It is also aligned with MIGA’s strategy of promoting investment into countries eligible for concessional financing from the International Development Association.
The project was underwritten through MIGA’s Small Investment Program.