IFC strengthens partnership with Azalaï Hotels Group with US$10.3M investment

SENEGAL – International Finance Corporation (IFC) has announced a €10 million (US$10.3 million) loan to leading hospitality company Azalaï Hotels Group, a move meant to support the growth of the hospitality sector in West Africa.

IFC’s financing will help Azalaï Hotels Group address its working capital needs and expand regionally, with projects such as 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 Mali.

This support aims to improve hospitality services in West Africa, an area where such services are currently scarce.

In addition to financial assistance, IFC will provide advisory services to help Azalaï Hotels Group enhance its corporate governance practices.

The tourism sector, a key driver of job creation and GDP, faced significant challenges due to the COVID-19 pandemic. IFC’s involvement is expected to foster both direct and indirect job creation while providing more opportunities for local SMEs in the target countries.

This investment is supported by the IDA Private Sector Window Blended Finance Facility.

IFC’s Managing Director, Makhtar Diop, stated that the ongoing partnership with Azalaï Hotels Group demonstrates the institution’s commitment to supporting West Africa’s tourism sector, which is crucial for creating high-quality jobs and promoting local economic development.

He also noted that the renewed collaboration highlights IFC’s dedication to supporting regional champions.

IFC’s partnership with Azalaï Hotels Group dates back to 1994, with the institution backing five of the group’s projects across the region.

Beyond financing, IFC has provided advisory services in areas such as food safety and financial management, which have helped improve the operational capabilities and sustainability of the group.

In the fiscal year ending June 30, 2024, IFC made a record investment of approximately US$615 million in Senegal, contributing to projects in sectors like vaccine production, digital infrastructure, tourism, housing, renewable energy, manufacturing, and agriculture.

Mossadeck Bally, the Founder and Chairman of Azalaï Hotels Group, expressed that the funding represents more than just financial support; it signifies renewed trust from a key strategic partner.

He explained that the collaboration, which has been successful for nearly three decades, would support the group’s regional expansion and drive job creation and supply chain development within the sector.

He also thanked IFC and its Managing Director for this renewed trust.

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