Institutional investors are taking over from the government funded projects of the previous generation in Africa, as discussed by Philippe Doizelet.

Institutional investors of the new generation

You have a change in generation. The old model was made of a government funded project, ruled or managed by international hotel companies. Now it’s very different, it starts from the fields actually. You have local investment funds or institutional investors like insurance companies or even local holding or family offices, believing in the rise of economy, understanding that the hotel business is an induced market and from there they invest in hotel projects. The main opportunity is that now regardless the difficulty of funding their project, they manage to get agreement with hotel major companies and support of a financial organisation who have a closer look on the sector. You have money coming from mainly, from Africa, from the continent because economy conditions now enable local investors to have cash available for development. And they are in a position from there to leverage that from international banks or specialised banks, namely IFC or Afreximbank or local banks from key African countries, including Morocco or South Africa.   The Hospitality TV Channel will continue to follow issues around institutional investors and will have many more videos focused on regional markets.