Online Reporter
Nqobile Bhebhe in Masvingo
ZIMBABWE’S tourism sector is sitting on an estimated US$500 million hotel infrastructure investment pipeline, signalling strong investor appetite from pension funds, institutional investors, local companies and international hospitality groups seeking to tap into the country’s growing tourism economy.
The projects, which are at various stages of development, are expected to be completed by 2030, Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube has said.
Prof Ncube said the growing participation of institutional capital was evidence that tourism was increasingly being viewed as a viable long-term asset class.
Speaking at the 19th edition of the Sanganai/Hlanganani/Dzimbahwe World Tourism Investment Expo Forum on Thursday, Prof Ncube said the sector was attracting increasingly diverse sources of capital as investor confidence strengthened.
“Perhaps the strongest signal today is the insatiable appetite and growing participation funding from pension funds, institutional investors, local companies and international hospitality groups.
“Pension and institutional capital from organisations including ZESA Pension Fund, the Government Pension Fund, Old Mutual and the NRZ Pension Fund is increasingly finding its way into tourism and hospitality assets,” he said.
“Today, we have approximately US$500 million worth of Hotel Infrastructure projects at various stages of development, which are all set to be completed by 2030.”
He said the Public Service Commission Pension Fund was already investing in tourism assets through the acquisition of the Monomotapa Hotel and Ruparara Valley Lodge, while the Unified Councils Pension Fund and Mining Industry Pension Fund were collaborating on a four-star hotel development in Victoria Falls.
“These are important developments because they demonstrate a fundamental fact that Zimbabwean institutional capital is beginning to recognise tourism as a viable, long-term asset class,” Prof Ncube said.
The investment surge comes as the tourism sector continues to recover, with tourist arrivals and receipts recording growth during the first half of the year.
