African Sun shuts down Victoria Falls Kingdom Hotel

 African Sun Limited has announced it is shutting down its Kingdom Hotel in Victoria Falls January next year after failing to agree on lease terms with First Capital Bank, owners of the property.

The hotelier said the parties had failed to reach common ground on the length of the lease with the property owner firm on a two-year lease while ASL wanted 10 years, sufficient to recoup its investment.

In a 24 November memo to trading partners, African Sun Limited chief executive Peter Saungweme said the Kingdom hotel would close for business with effect from January 5, 2023.

"Further to the formal announcement which African Sun Limited (African Sun) released to the market on 4 July 2022, we would like to inform you that the Kingdom at Victoria Falls Hotel ("the Hotel") shall be closing for business with effect from 5 January 2023.

"We would like to thank you for your past business and support over the years and look forward to continuing working with you at our other ten hotels, which include the Victoria Falls Hotel and Elephant Hills Resort and Conference Centre which are also situated in the city of Victoria Falls," he said.

In an interview, African Sun Limited chairman Emmanuel Fundira said it was unfortunate that the two parties did not reach an agreement.

"We said two years does not work for us. For us to recoup the investment of over US$6 million on the hotel, it will require us at least a minimum period of 10 years to operate.

"So, two years will not work for us. That's where the departure began. We negotiated and negotiated and they refused.

"We see that there was really another hand into this," he said.

Africa Sun Limited has been operating the 294-roomed Kingdom Hotel since 1997.

Source: African Sun shuts down Victoria Falls Kingdom Hotel (30/11/22)

High Court seemingly reluctant to stop threats facing Victoria Falls

 More than five months have passed now since the High Court was approached to stop a substantial riverside restaurant development near the Victoria Falls and the commercialisation of Cataract Island in the tourism city.

Earlier this year information emerged that two private companies were about to undertake commercial operations in the vicinity of the Victoria Falls World Heritage Site.

Adage Success P/L apparently had permission from the Zimbabwe National Parks and Wildlife Authority (ZNPWA) to undertake commercial activities on Cataract Island including a natural plunge pool experience on the immediate edge of the Main Falls.

This was subsequently advertised by Zambezi Crescent, Mr Mark Bosch’s company.

On May 30 this year, Larry Norton, an artist based in Victoria Falls filed a case at the High Court in the capital Harare, along with other residents, to stop these developments. The court application was filed on an urgent basis.

But it has been more than five months now and the matter is yet to be heard.

The controversial developments are, however, taking place at one of the seven wonders of the world.

In an open letter aimed at updating the world about the ongoing court case, Norton articulated that the judiciary was yet to hear their matter. He added that they have been writing letters to authorities to act but nothing has yet materialised.

“Despite an urgent application submitted on 30th May 2022, the case has yet to be heard. 149 days have passed with no ruling from the judge on the Urgent Application to stop these activities.

“Three letters to the high court questioning this extraordinary and unheard of delay have been sent. The last letter was acknowledged by the Registrar,” Norton wrote.

He further stated that he was threatened by unnamed government officials who wanted to stop him from challenging the matter.

“At the outset of this process I received a phone call from a government official. I was asked who I represented, ordered to stop enquiries, desist from talking to people about these issues and advised that I was going against the government.

“After the court process had begun another government official approached a number of individuals who had written supporting applications for the case to attempt to persuade them to abandon their applications. He was unsuccessful. I question his interest in two proposed commercial enterprises,” Norton added.

Around 2016 a Victoria Falls tourism company was offered Cataract Island and turned the lease down due to a public outcry. Two other local operators then applied for the same lease. Both offered substantial lease fees. Both were turned down by ZNPWA for environmental reasons.

A lease was later surreptitiously awarded to Adage of Success for US$5,000 per year (as per court papers submitted). This amount is payable in RTGS.

Norton said the restaurant is sited 40 metres from the Rainforest fence, on the water’s edge approaching Devil’s Cataract. The developers have cleared large sections of riverine bush . They are currently concreting foundations.

He added: “These actions, in such a sensitive site, to me, demonstrate a callous disregard for this fragile environment and wild space in exchange for personal profit.”

He appealed to the World Heritage Site monitors to urgently investigate both the proposed riverside restaurant development and the Cataract Island commercial operation on the Zimbabwe side.

Source: High Court seemingly reluctant to stop threats facing Victoria Falls (7/11/22)

Victoria Falls F1-grade racecourse plans halted by High Court, Zimbabwe

 The lease agreement between Hwange Rural District Council and Stelix Civils, which intended to build the Victoria Falls F1-grade racecourse, for 500 hectares of land was declared null. The decision was made by Bulawayo’s High Court Justice Evangelista Kabasa.

The ruling was made after 100 villagers filed a lawsuit to stop the Victoria Falls F1-grade racecourse development. They claimed it would force them from their ancestral land.

After hearing arguments from lawyers, Justice Kabasa said the manner in which they went about it was unlawful. This is despite Hwange RDC’s plans of developing the public land in question.

The verdict was delivered on September 20 but was not made public until recently.

Why the villagers filed a lawsuit against the development of Victoria Falls F1-grade racecourse

The argument focused on the legality of a decision made by the local authorities on June 11, 2018. The decision granted Stelix a lease for 500 hectares of land. Stelix then fenced the area off.

The villagers of the communities of Chibode, Kachecheti, and Nemananga argued that the Hwange RDC had surpassed its authority. This was by attempting to grant a business lease to Stelix. The move violates Section 10 of the Communal Lands Act. It specifies that only the local government minister can set aside communal land for other developments. The villagers were represented by lawyer Josphat Tshuma of Zimbabwe Lawyers for Human Rights.

The first respondent, local government minister July Moyo, chose to follow the court’s findings and chose not to file any papers.

Why the judge declared the development invalid

The local government minister was not involved in all the procedures that led to the Hwange RDC’s decision granting a lease to Stelix. This was according to Justice Kabasa’s ruling. Similarly, the Minister, not Hwange RDC, is to undertake the procedures outlined in Section 10.

According to the Administrative Justice Act, the judge said that it was unnecessary to address additional concerns raised by the villagers on the lack of consultation and the unreasonableness of Hwange RDC’s actions. She said that the conduct itself was unlawful and permeated throughout the entire process. She also claimed that it was irrational.

The judge stated she found no reason to impose punishing costs against the local authorities. She also credited the Hwange RDC for being driven by a desire to develop the region.

The judge finally ruled that the leasing agreement between Hwange RDC and Stelix for the purpose of constructing a racecourse was invalid. Additionally, all actions and conduct undertaken by Hwange RDC following the issuing of the lease agreement to Stelix were declared invalid.

The villagers’ demand that Stelix takes down its fence within 48 hours of the ruling was dismissed by the judge in their proposed draft order.

Source: Victoria Falls F1-grade racecourse plans halted by High Court, Zimbabwe (15/10/22)

Land scam: Vic Falls Mayor Dhlamini arrested

 Victoria Falls Mayor Somveli Dhlamini has been arrested by the Zimbabwe Anti-Corruption Commission on a land-related scam after he fraudulently acquired his residential stand.

In a statement, ZACC said Dhlamini is being charged for fraud, alternatively concealing from a principal a personal interest in a transaction as defined in section 173 of the Criminal Law Codification Act

ZACC said the charges are emanating from a fraudulent purchase of a residential stand in the low-density suburb of Victoria Falls by the mayor.

The law enforcement agency said Dhlamini is in police custody and will appear in court tomorrow.

Source: Land scam: Vic Falls Mayor Dhlamini arrested (06/10/22)

Victoria Falls Hotel in US$4.5m upgrade

Hospitality groups, African Sun and Meikles have jointly invested US$4,5 million towards refurbishment of the Victoria Falls Hotel.

This comes as the sector is on a recovery path following the challenges experienced after the outbreak of the Covid-19 pandemic which affected global economies.

The tourism and hospitality sector was one of the hardest hit by the pandemic which resulted in operators temporarily closing some of their facilities as economies world over implemented lock down measures to limit the spread of the pandemic.

Recovery has so far been sustained mainly by the domestic market travellers with prospects high for growth from international markets following relaxation of travel restrictions globally.

“Our cash utilisation strategy remains unchanged, focusing mainly on targeted capital expenditure on hotel assets in order to enhance guest experience and to preserve value,” said African Sun chairman Emmanuel Fundira in an update on the group’s refurbishment initiatives.

“Earlier this month, we celebrated the highly anticipated completion of 47 rooms and kitchen refurbishment at the majestic five-star Victoria Falls Hotel, “the Grand Old Lady”.

“The group, together with our partner Meikles Limited, invested over US$4,5 million towards the refurbishment of this property,” he said.

In anticipation of the growth in international arrivals, hospitality groups have also resorted to refurbish their facilities to improve ambience and position themselves for the anticipated tourism rebound.

African Sun has further committed additional millions of dollars this current financial year, towards sprucing the image of its other hotels.

At Troutbeck Resort alone, an investment of US$1,8 million is expected to be made towards refurbishment works which commenced during the past financial year.

The refurbishment, which commenced in 2021 with a complete roof makeover, is expected to be concluded in 2022 when the hotel’s 100 rooms are refurbished.

According to the group, preparatory work to carry out the refurbishment of eight additional rooms at Great Zimbabwe Hotel and remedial works on the Hungwe Conference Centre are at an advanced stage, with actual works scheduled to commence in the second quarter of 2022.

Plans are also currently underway to refurbish rooms at Hwange Safari Lodge with mock-up rooms having been started. The first phase of the project, which targets 60 rooms, is expected to be completed in 2022.

The tourism and hospitality sector has been identified as one of the low hanging fruits expected to significantly contribute towards the economy and turn it into an upper middle class economy by 2030.

Source: Victoria Falls Hotel in US$4.5m upgrade (29/09/22)

African Sun completes purchase of Dawn Properties

 HOSPITALITY group, African Sun Limited completed its full acquisition of realtor, Dawn Properties Limited for $1,47 billion, during the half-year to June 30, 2022.

African Sun’s interest in DPL was revealed at a board meeting in May 2020, during which the board agreed to purchase the realtor by offering shareholders one share in the hotelier in exchange of 3,988075946 of the real estate firm’s shares.

As previously reported, the deal entailed African Sun issuing 616 129 718 new ordinary shares to be listed on the ZSE, for 2 457 172 108 shares in Dawn, representing 100% of the issued shares.

On the last day of trading, on February 17, 2021 Dawn shares were worth $982,86 million.

However, African Sun reported that by the end of 2021, a total of 561 745 443 African Sun shares were issued in exchange of a 91,17% equity ownership in Dawn, a $1,07 billion investments into the realtor.

“During the period under review the group acquired the remaining 8,83% shares of DPL through a tag along (3,21%) and drag along (5,62%) process in terms of section 239 of the Companies and Other Business Entities Act [Chapter 24:31],” ASL said, in a statement attached to the group’s half-year financial results ended June 30, 2020.

“The group settled the seller’s transaction costs during the process and in turn withheld shares sufficient to cover costs from shares that had been issued to former Dawn shareholders in line with the provision of the circular to Dawn shareholders. The shares withheld are now held by the company as treasury shares.”

African Sun said the treasury shares were measured at the value of the transaction costs settled by the group as this was taken as the consideration paid for the shares.

During the period, $54 384 275 worth of shares were issued to buy the remaining Dawn stake taking the total value to $1 474 359 582 as of June 30.

“The group adopted the par value method to record the treasury shares and the shares were deducted from equity with no gain or loss being recognised in profit or loss for the period,” African Sun said.

“The transaction resulted in a change of degree of ownership in Dawn Properties Limited from 91,17% to a 100% owned subsidiary.”

Currently, African Sun is working on fully integrating Dawn into the overall group activities a process that is supposed to be finished by the end of the year.

“The group’s strategy to rationalise its asset base by disposing of non-core real estate assets to unlock much needed liquidity for targeted capital expenditure on core operations, is progressing well,” African Sun chairperson Emmanuel Anesu Fundira said in the report under review.

“As of the date of this report, the group had raised US$1,7 million from the disposal of non-core assets, including proceeds from the former Brondesbury Park Hotel in Nyanga. The former Beitbridge Express Hotel property and 100% equity stake in Dawn Property Consultancy (Private) Limited, which are the principal non-core investments yet to disposed of, are being actively marketed.”

African Sun made a gain of $8,59 billion last year, after purchasing the initial 91,17% stake in DPL.

Following Dawn’s entry into the group, African Sun reported that 12% of its revenue of $4,32 billion was from the realtor in 2021.

Key contributors to Dawn revenues, African Sun reported in its 2021 annual report, included 22 (2020: 17) residential stand sales at Marlborough Sunset Views and property consultancy revenue. As at December 31, 2021, 23 stands remained unsold.

Source: African Sun completes purchase of Dawn Properties (26/09/2022)

Ministry works on US$5bn tourism economy

Tourism is one of the critical sectors of the economy with great potential to turn around the economy, Minister of Environment, Climate, Tourism and Hospitality Industry Mangaliso Ndlovu said yesterday.

Speaking at the Ministry’s strategic planning workshop in Bvumba, Minister Ndlovu said tourism was a low hanging fruit characterised by foreign currency earnings, employment creation and community empowerment.

So people must guard the sector and ensure that they continue to grow its size for the benefit of the nation at large.

“Government remains committed to play its supportive and facilitatory role to stimulate and boost the growth of the tourism sector.

“As we carry out our business, let us be mindful of the fact that we have a target to achieve, that is the US$5 billion tourism economy by 2025.

“It is my hope that, as we are emerging from the devastating Covid-19 pandemic, we have taken a closer look at the national tourism recovery and growth strategy to assess our targets, our strategies, and that we are identifying areas that need more emphasis for us to meet and possibly surpass the initial targets,” Minister Ndlovu said.

Tracking performance was critical and those in the industry needed to know where they were falling short and work with all stakeholders to institute remedial measures.

Minister Ndlovu said there was also a need for quarterly review of the performance of the strategy to ensure set targets are met, as identified.

“I am happy that the tourism sector is now on a growth trajectory due to the relaxation of Covid-19 induced travel restrictions and lockdowns, and the opening of doors for both domestic and international travel,” he said.

“Let us take advantage of this phase to work with all stakeholders to design and offer competitive products and services in order to attract more tourists to Zimbabwe. In this vein, we need to increase impetus on our programme of identifying and exposing tourism potential across the country, and at the same time meeting our stakeholders.

“During the first half of 2022, the tourism sector registered a 115 percent rise in tourist arrivals to 352 719 compared with the same period in 2021 where the international arrivals received were 164 062. The tourist receipts also increased by 121 percent in 2022 to US$337,5 million compared to US$152,8 million in 2021.”

Minister Ndlovu said domestic entries into national parks rose 90 percent from 90 909 in 2021 to 172 481 during the period January to May this year.

A 79 percent increase in new investments was also registered this year with a total of US$96,5 million recorded.

Source: Ministry works on US$5bn tourism economy (22/09/22)