Project Summary
In June 30, 2021, The Multilateral Investment Guarantee Agency (MIGA), a member of the World Bank Group, issued a non-binding Master Contract (“MC”) of Guarantee to Kasada Hospitality Fund L.P (“Kasada”) with an availability period of three years during which Kasada’s future hotel investments will be underwritten individually by MIGA under established procedures.[1]
In November 10, 2021, MIGA issued guarantees of up to US$78.9million covering Kasada’s first Sub-project named Sub-project Awale, which consists of a portfolio of eight brownfield hotels acquired by Kasada and operated by Accor S.A. (“Accor”) in Cameroon, Côte d’Ivoire and Senegal. Under Sub-project Awale, MIGA issued nine contracts of guarantee to provide coverage against the risks of Expropriation, Transfer Restriction, and War and Civil Disturbance for Kasada’s equity investments for a period of up to 15 years.
Through Sub-Project Awale, Kasada expects to create direct jobs, with spillover into indirect and induced job creation in the tourism supply chain. Given Kasada’s large-targeted equity base and its total financing capacity, the potential investment through the Project into the proposed countries is significant. Therefore, the development impact is expected to be mainly driven by created or retained employment and spillover effects for indirect employment and value creation.
Environmental Categorization
The project is a 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 Expected Development Impact for Sub-Project Awale is expected to be driven by ( i) direct, indirect and induced job creation and GDP addition; (ii) Environmental and Social effects via improved energy and water efficiency in the acquired hotels (Kasada aims to achieve IFC’s EDGE certification in at least 20% of its hotels by 2025); (iii) improved investor confidence in the SSA tourism sector as a result of Kasada’s demonstrated investment viability despite the downturn; and (iv) improved business infrastructure in the Sub-project locations. The ability of Kasada to achieve its potential development impact will be affected by the operating environment in each country and the overall investment climate for tourism projects in Sub-Saharan Africa following COVID-19.
[1] The guarantee for Pierre Loti SA / Hotel Ibis Douala in Cameroon was cancelled on June 15, 2024.
