To help strengthen Rwanda’s tourism sector and create jobs, IFC on Friday announced a partnership with 3B Group of Hotels to support the company’s expansion and the
upgrading of its existing lodges in the country.
IFC will lend up to $3.7 million to 3B Group of Hotels to support its construction of a 30-room mid-market safari camp in Akagera in Rwanda’s Great Lakes region and the refurbishment and upgrading of its three existing properties in Rwanda. IFC’s investment will also help 3B Group of Hotels meet its working capital needs and strengthen its environmental, social, and governance practices.
The projects are expected to create more than 90 permanent jobs, and more temporary jobs during the construction phase.
Tourism makes a major contribution to jobs and economic activity in Rwanda, famed for its mountain gorillas, but the sector was hit hard by the COVID-19 pandemic, with tourism earnings plummeting by about 75 percent in 2020, according to the World Bank.
Many tourism-focused businesses struggled during the depths of the pandemic, making increased investment in the sector even more urgent.
“We are expanding our operations to the eastern region to give our guests a full experience of Rwanda’s tourism offerings and diversity in terms of tourism locations. Most importantly, our expansion will improve 3B Group of Hotel’s average length of stay,” said Paul Muvunyi, Chairman, 3B Group of Hotels. “So, IFC’s financing has come at a critical stage and will support 3B Group of Hotels to complete construction of the 30-room Akagera Safari Camp Lodge and renovate existing lodges.”
“Tourism is an important driver of economic growth in Rwanda and other parts of Africa, but the sector needs additional support in the wake of the damaging effects of COVID-19 on trade and travel. IFC’s partnership with 3B Group of Hotels will create jobs and help strengthen Rwanda’s tourism sector as it recovers from the pandemic. IFC invests in tourism because of its positive developmental impact on a range of local businesses,” said Jumoke Jagun-Dokunmu, IFC Regional Director for Eastern Africa.
IFC’s funding package includes a $1.7 million concessional loan from the International Development Association’s Private Sector Window, a fund that supports private sector growth in lower-income countries. IFC also works with governments to strengthen the overall tourism ecosystem to support more competitive destinations that attract travelers.