MADRID - The state of borrowing for hotel acquisitions, development and renovations is fraught all over the world as global economies continue to struggle with the effects of a pandemic.
In Africa, the situation is even more difficult, as for decades there has been a bias in the greater international banking community that doing business in Africa is risky.
Rather than waiting for the world to right itself and for outside lenders to catch on, hoteliers in Africa are finding their own solutions for financing.
During a panel on Africa at the Atlantic Ocean Hotel Investors’ Summit, hosted in Madrid, hotel investors discussed the vehicles available to get deals done and projects off the ground.
Jean-Louis Ekra, founder of Abidjan, Ivory Coast-based investor Ayipling Morrison Capital, said financial institutions such as the Africa Import Export Bank have initiated vehicles able to lend to African hotel and tourism developments with better terms and more alignment.
Banks have started to ease construction risk. We saw that risk was so high, it had to be dealt with, he said.