International Finance Corporation (IFC) has announced a €10 million loan to leading hospitality company Azalaï Hotels Group, a move meant to support the growth of the hospitality sector in West Africa.
In a statement by International Finance Corporation (IFC), the financing will support Azalaï Hotels Group’s working capital needs and regional expansion plans, which include the recently opened Azalaï Hotel Dakar in Senegal, the reconstruction of Azalaï Hotel Ouagadougou, in Burkina Faso, and the refurbishment of the Grand Hôtel Bamako in Bamako, Mali. This will help offer superior hospitality services in West Africa where the supply of such service is limited.
The tourism sector, an important source of jobs and contribution to GDP, was strongly impacted by the COVID-19 pandemic. IFC’s backing to Azalaï Hotels Group will support high-quality formal direct and indirect job creation and increased local sourcing opportunities for SME suppliers in the target countries. IFC’s investment is supported by the IDA Private Sector Window Blended Finance Facility.
Makhtar Diop, IFC Managing Director, said, “IFC’s continued partnership with Azalaï Hotels Group underscores our commitment to supporting the tourism sector in West Africa, particularly in West Africa, which is key for high-quality job creation and local economic development. This renewed collaboration also underscores our strong commitment to supporting homegrown regional champions.”
Mossadeck Bally, Azalai Hotels Group Founder, and Chairman, said, ” This funding represents much more than a financial support; it is a renewed Trust from a premier strategic financial institution with whom we have a dynamic, successful, and value-creating partnership that has been in existence for three decades. This funding will support our regional expansion, while stimulating job creations and supply chain development within the sector. Thanks to IFC, its Director General, Mr. Makhtar Diop and all those who have contributed for this renewed trust.”
In addition to its financing support, IFC will provide advisory services to help the company improve its standards in corporate governance. Since 1994, IFC has maintained a long-term partnership with Azalaï Hotels Group, supporting five of its projects across the region. In addition to financial support, IFC has also provided advisory services to the company, focusing on food safety and financial management, further strengthening the group’s operational capabilities and sustainability.
Last fiscal year ending June 30, 2024, IFC committed about $615 million in investments and mobilizations in Senegal, a record for IFC in the country. IFC’s current portfolio in Senegal is supporting vaccine production, digital infrastructure, tourism, housing, renewable energy, manufacturing, and agricultural value chains.
IFC — a member of the World Bank Group — is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet.
