Announcement of Major Six Million Ninety Thousand US Dollars for Malawi Hotels Expansion on April 24, 1980

International Finance Corporation • "18'i8 H Street, N.W. Washington, D.C. 20433, U.S.A. 202-4 77- "1234 IFC Press Release No. 80/24 Thursday, April 24, 1980 Major, $6.9 Million Malawi.Hotels Expansion Two development institutions, the International Finance Corporation (IFC) and the Commonwealth Development Corporation (CDC), are joini:ng Malawi investors and institutions in financing a major expansion of hotel facilities in Blantyre and Lilongwe. Malawi Hotels Limited, the largest hotel group in Malawi, is undertaking a $6.9 million project that will provide urgently needed additional rooms for business, government and other travelers. In addition, the project will en- cour~ge the growth of individual and small group tourism in the country. • The project includes: adding a SO-room wing to the Company's Mount Soche Hotel in Blantyre and enlarging and improving exis·ting facilities (completed late 1979); adding 49 rooms to its Lilongwe Hotel and enlare,ing and improving existing facilities; and purchasing and enlarging the Lingadzi Inn in Lilongwe. The expansion is scheduled for completion by the end of this year. It will increase the number of Malawi Hotels' rooms by 66 per cent from 206 to 341. Loan financing for the project is being provided by IFC, the World Bank affiliate that assists the private enterprise sector in developing countries, $1,965,000; the Investment and Development Bank of Malawi, $1,954,000; and CDC, a British Government development agency, $1,708,000. Additional equity subscriptions totalling approximately $480,000 by Malawi Hotels Limited shareholders -- Malawi Development Corporation (MDC), Carlsberg Malawi Brewery and CDC -- and internal cash generation complete the financial plan. Carlsberg Malawi Brewery is owned by MDC, Carlsberg Breweries of Denmark and Press (Holdings) Ltd. of Malawi • •  - 2 - • The project will benefit the economy through estimated net foreign exchange benefits of $4 million a year, by creating direct employment for 206 Malawians, and by generating additional, indirect employment through increased demand for foodstuffs, handicrafts and a variety of other goods and nervices. • [Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 676-0394,] •