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Business Reporter
LISTED hotelier African Sun Limited (ASL) will spend US$1,2 million to rebrand its Mutare hotel. Already, US$200 000 has been spent on preparatory works. The African Sun Amber Hotel Mutare will be rebranded as Holiday Inn, which is part of the InterContinental Hotels Group-affiliated brands. The undertaking is part of the group’s strategy to reposition the brand to a profitable business model.
ASL managing director Mr Edwin Shangwa said the rebranding was part of a broad exercise to ensure that each of the group’s assets was managed by an international brand partner.
Foreign business operations, which are run under African Sun PCC and considered to be a drag on the hotelier, will be disposed of before the end of the year and focus will be on profitable local units.
“Disposal agreements have already been executed with the buyer, and we await completion of all regulatory approvals to fully consummate the transaction,” said Mr Shangwa.
In addition, African Sun plans to restructure its balance sheet and reduce costs. Short-term loans worth US$3,9 million have since been restructured. In the six-month period ending June 30, 2016, ASL reported that its losses narrowed to US$560 000 from US$1,2 million in the same period a year ago.
Business from regional markets, especially South Africa, fell 46 percent on falling rand, while the local market tanked 17 percent. The international market recovered 4 percent.
. . . as ZB considers micro-finance unit
ZB Holdings is considering opening a separate micro-finance unit to process nano transactions that cannot be run on platforms meant for commercial banks.
ZB Holdings group CEO Mr Ron Mutandagayi told an analysts’ briefing in the capital last week that a micro-finance business could be profitable.
“We think that we are able to play a part in that area. Some transactions are very small, you cannot handle them as a bank.
“So you would prefer to start a micro finance institution with an appropriate system that handles Nano transactions,” said Mr Mutandagayi
He said if the institution was formed, it would enter the market as an independent entity to gain greater acceptance.
There are currently 155 micro-finance institutions in Zimbabwe.
ZB has also come up with a special purpose vehicle to house bad loans. The move is part of the bank’s aggressive efforts to recover loans.
Mr Mutandagayi said despite the Zimbabwe Asset Management Corporation picking up some of its bad loans, there were others the State was not been willing to take.
“This is why we formed the SPV. We will separate those bad loans, put them in that SPV, run that SPV as a separate business unit and allow recoveries to take place,” he said.
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