Norsad Capital Announces Successful Exit from Protea Hotels Zambia
Gaborone, Botswana – 21 October 2024 – Norsad Capital, an impact investor and private credit provider is pleased to announce the successful exit from its investment in Protea Hotels Zambia. This marks a significant achievement in its ongoing mission to drive sustainable growth and create lasting impact across Sub Saharan Africa.
Protea Hotels Zambia, has grown from a single lodge into a portfolio of 11 hotels. Protea Hotels by Marriott, now part of Marriott International, stands as a pillar of Zambia’s hospitality sector. This strategic investment helped fortify Protea’s position in the market, providing essential support and fostering lasting benefits for the business and its employees.
This investment was not without its challenges. The COVID-19 pandemic devastated the global hospitality industry, but Protea Hotels Zambia demonstrated remarkable resilience. With Norsad’s flexible approach, including restructuring terms Protea was able to stabilize operations and retain critical jobs during the crisis.
Alice Zulu, Investment Director at Norsad Capital said “Even amid tough times, we remained optimistic about the sector’s long term prospects, recognising it’s role in driving economic growth. This investment also had a significant developmental impact, particularly jobs for women, and preserving livelihoods through the COVID-19 crisis, aligning with Norsad’s commitment to promoting sustainable livelihoods.”
Beyond financial resilience, the investment showcased the power of local and international collaboration. Protea benefited from support measures introduced by the Zambian government and co-financing from the International Finance Corporation (IFC). Norsad’s ability to work in partnership with other financial institutions provided the hotel chain with the additional backing it needed – underscoring the value of strong partnerships in managing risks.
Christopher O’Donnell, Group Financial Manager at Protea Hotels Zambia expressed his satisfaction with the successful utilisation of the funding, which were directed toward the development of their hotel in Ndola. He noted that the project has contributed to the expansion of their footprint in Zambia, creating jobs and strengthening the region’s hospitality infrastructure. O’Donnell emphasized that Norsad’s support was key in making this vision a reality, marking a significant achievement for both parties.
In alignment with Norsad’s commitment to fostering sustainable livelihoods, this investment targets United Nations SDGs 5, 8, 9, and 17 by promoting gender equality through job creation for women, supporting decent work and economic growth, and reinforcing Zambia’s hospitality infrastructure. It fostered innovation and resilience, particularly during the pandemic, while highlighting the importance of partnerships with institutions like the IFC and the Zambian government to achieve sustainable development and long-term impact.
“This exit marks the successful completion of our strategic objectives,” said Allan Mutenda, Chief Risk Officer at Norsad Capital. “We are proud of what we have achieved together with Protea Hotels Zambia, and it’s rewarding to see the positive outcomes—both in terms of financial returns and developmental impact. This partnership exemplifies the kind of enduring, impactful relationships we seek to build across Africa,” he added.
As Norsad exits its investment, the success of this partnership highlights the company’s commitment to fostering long-term relationships with key clients. The collaboration with Protea Hotels Zambia’s parent company, Union Gold Zambia, remains robust, with both parties exploring new opportunities for growth.
About Norsad Capital
Norsad Capital is an impact investor providing tailor-made debt solutions to mid market growth companies in Sub-Saharan Africa. With a track record spanning over 34 years, Norsad Capital has invested over USD 500 million in over 170 companies across the continent.
For more information: https://www.norsadcapital.com
About Protea Hotels Zambia
Protea Hotels Zambia Limited (PHZ), founded in 1998 by Mr. Mark O’Donnell, is the parent company of a chain of full-service hotels across the country. The group has expanded to 11 hotels, the majority under the Protea brand, with others operating under various Marriott franchises throughout Zambia. As one of the fastest-growing hotel groups in Southern Africa, PHZ continues to thrive, aiming to expand its presence nationwide while creating more employment opportunities and supporting the local communities where each of its hotels are located.
