Project description
On July 31, 2023, the Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group issued a guarantee totaling US$20.6 million to Condor KGL Limited, a subsidiary of Kasada Hospitality Fund LP (Kasada) of Mauritius, for its equity investment into Condor KGL Rwanda Limited in Rwanda. The MIGA guarantee covers Expropriation, Transfer Restriction and War and Civil Disturbance for a period of up to 15 years.
Kasada’s investment consists of the acquisition of the Umubano Hotel in Kigali, Rwanda, its future conversion to a 138-key Mövenpick hotel, and the development of annex buildings including a co-working space, conference, leisure, and wellness facilities. The Umubano Hotel is in Kigali’s diplomatic node, 6 kilometers from Kigali International Airport and close to several embassies including the US, UK and Swedish embassies. Originally opened in 1979, it is one of the oldest hotels in Rwanda. Previously owned by the Government of Rwanda through Rwanda’s sovereign wealth fund, the hotel has changed hands several times before being closed in 2020.
Kasada is a private equity fund dedicated to investing in the Sub-Saharan Africa hospitality sector. The fund is owned by the Qatar Investment Authority, Qatar’s sovereign wealth fund, and Accor, a French multinational company and the sixth largest hotel management company in the world, as limited partners. Kasada expects to establish a portfolio of more than 20 hotels (about 4,000 hotel keys) requiring a total investment of US$1 billion.
Environmental Categorization
The project is Category B under MIGA’s Policy on Environmental and Social Sustainability. Click here for the project’s Environmental and Social Review Summary and Environmental and Social Action Plan.
Development impact
The tourism and hospitality sector is an important driver of Rwanda’s growth, it is the country’s top foreign exchange earner and a major contributor to employment. MIGA’s support to the project contributes to the continuing recovery from the impact of the COVID-19 pandemic of the Rwandan tourism and hospitality sector, which is critical for job creation, foreign exchange earnings and local economy linkages. The project will lead to job creation with up to 170 employees to be permanently hired as hotel staff and up to 100 temporary jobs to be created during the renovation and construction phases. It will also contribute to reduced carbon emissions and demonstration effect among larger hotel chains and companies to adopt green building practices through the hotel’s commitment to becoming Excellence in Design for Greater Efficiencies (EDGE) Advanced (Zero Carbon Ready).
