NRZ to dispose of scrap wagons, coaches

THE National Railways of Zimbabwe (NRZ) has announced plans to dispose of 422 scrap wagons and some decades-old passenger coaches in Bulawayo, Harare and other locations across the country.

The disposal process will include various metals such as copper, steel, cast iron and aluminium, which will be sold through a tender system advertised in the media this week.

NRZ public relations manager, Mr Andrew Kunambura, said 51 decommissioned passenger coaches that were burnt to shells in a raging fire that razed part of the Bulawayo mechanical workshop will not be part of the scrap to be auctioned.

“We are not disposing of any of the decommissioned coaches that were burnt in September 2024. The reason why the NRZ is disposing of some of the old wagons and coaches as scrap is because the property has outlived its life span and can no longer be used commercially,” he said.

“The value of the old wagons and coaches is now only in scrap form.”

Mr Kunambura said the parastatal does not dispose of any of its property that is still commercially usable. In September, a fire broke out at the NRZ’s Bulawayo mechanical workshop and destroyed 51 decommissioned passenger coaches.

The decommissioned passenger coaches were reduced to shells in a suspected veld fire, which took the Bulawayo Fire Brigade over four hours to extinguish.

Part of the property that will be sold as scrap metal by NRZ includes 346 scrap wagons stationed in various locations around the country.

In Bulawayo and Harare, 76 scrap coaches and cabooses will be disposed of. At the Bulawayo mechanical workshop, 244 tonnes of ungraded steel will be sold while five LPG tankers in Zvishavane, Kadoma, Chegutu, Norton and Harare are set to be auctioned.

About 309 tonnes of graded steel will be sold in Bulawayo while 27 wagons will be sold in Dabuka, Gweru. The NRZ also plans to get rid of 1,58 tonnes of copper from its Bulawayo main stores depot while property such as coach generators and coach rotors from the Bulawayo mechanical workshop will be sold in addition to aluminium weighing three tonnes and two tonnes of cast iron from the same site will be disposed of.

Source: NRZ to dispose of scrap wagons, coaches (17/12/24)

Vic Falls still pulling tourists despite the drought (Zambia)

 (December 2024)

Despite the negative impact of climate change on the Victoria Falls in Livingstone, the world heritage site recorded an increase in visitations in the first  three quarters of this year compared to last year.

Tourism Minister RODNEY SIKUMBA told ZNBC News that 80,000 visitations were recorded by the third quarter of this compared to the 57,000 visitations recorded the same period last year.

Mr SIKUMBA said by end of the third quarter, the country recorded 1.7 million tourist visitations.

He said despite challenges occasioned by the drought, Zambia has continued to host important conferences and meetings which contribute positively to the country’s tourism.

Source: Vic Falls still pulling tourists despite the drought (17/12/24)

Government reverses 'unprocedural suspension' of Victoria Falls Town Clerk Ronnie Dube

THE Minister of Local Government and Public Works Daniel Garwe has ordered Victoria Falls City Council Mayor Councillor Prince Thuso Moyo to reverse the suspension of Town Clerk Mr Ronnie Dube with immediate effect.

The minister said the suspension was unprocedural.

Mr Dube was suspended on Monday last week on allegations of corruption and abuse of office, and councillors endorsed the suspension in a full council meeting the following day.

The City’s Mayor Cllr Thuso Moyo suspended Mr Dube through a letter dated December 2, 2024 and said he suspension was in terms of Section 29: (3) of the Urban Councils Act.

The letter was addressed to other councillors, District Development Coordinator’s office and the Ministry of Local Government and Public Works.

It was meant to be for 14 days after which a decision was to be made based on findings of investigations into the allegations, Cllr Moyo had said.

The Mayor said he had received several complaints and allegations of abuse of office and corruption against Mr Dube about illegal allocation of land.

In a letter dated December 6, 2024 and addressed to the Mayor, Local Government and Public Works Minister Garwe said the suspension was not supported by any council policy and resolution in the interest of ratepayers.

The Minister ordered that the suspension be rescinded immediately.

“It has come to my attention that you suspended the Town Clerk Mr Ronnie Dube on 2 December 2024. On 3 December 2024 council convened a special full council meeting for ratification of the Town Clerk’s suspension.

“I have noted that the resolution which council made is not in line with Section 139 (4) of the Urban Councils Act by constituting two bodies of inquirywhich will financially prejudice council. The decision to pay the suspended Town Clerk allowances is also not supported by any council policy. I am therefore of the view that the resolution of Council is not in the interest of the inhabitants of the council area considered and or public interest who are the taxpayers of council,” said Minister Garwe.

He ordered a reversal of the suspension.

“With immediate effect i hereby in terms of Section 314 of the Urban Councils Act direct council to rescind the resolution made on 3 December regarding suspension of the Town Clerk,” said the Minister.

The issue has literally divided the local authority with a section of residents calling for action while others are concerned about interference into council operations by some residents.

Source: Government reverses 'unprocedural suspension' of Victoria Falls Town Clerk Ronnie Dube (07/12/24)

Read more: Corruption and abuse of office: Victoria Falls Town Clerk and 2024 CEO of the year suspended (04/12/24) 

Stands corruption storm in Victoria Falls (11/06/22)

Corruption and abuse of office: Victoria Falls Town Clerk and 2024 CEO of the year suspended

(Zimbabwe, December 2024) VICTORIA Falls City Council Town Clerk Mr Ronnie Dube has been suspended on allegations of corruption and abuse of office.

The city’s councillors have endorsed the suspension in a full council meeting.

Victoria Falls mayor Cllr Prince Thuso Moyo suspended Mr Dube through a letter dated December 2, 2024.

He said the suspension was in terms of Section 29: (3) of the Urban Councils Act.

Mr Dube will be on suspension and barred from accessing his office or visiting the council offices for 14 days pending investigations, after which a decision will be made.

“In my capacity as the Mayor, I have received several complaints and allegations of abuse of office and corruption against yourself, particular I; It is alleged that you allocated or caused to be allocated stand 9615 to Priscila Thabolo and stand 9945 to Portia Salitsozo without following council procedure.

“It is alleged that you awarded a contract to Cascade Engineering Consultants for overseeing contract management without following the tender procedure, and it is alleged that you sold and transferred stand 1629 Chinotimba and council did not receive payment for the same, and the sale was not procedurally done. As a result of the above allegations among others, I hereby suspend you with immediate effect. You are required to leave council offices forthwith. Council will notify you of the way forward,” said Cllr Moyo.

The suspension letter was addressed to other councillors, the district Development Coordinator’s office and the Ministry of Local Government and Public Works.

Speaking after the full council meeting, Cllr Moyo said the suspension was for two weeks and had been communicated to the Gothe government.

He said the council adopted the suspension.

“The investigations are going on, and the council accepted the suspension, but for now, we stick to that. We have communicated to the Ministry and we will communicate on the resolutions that we made today,” said the mayor.

He could not shed more light on the specific charges.

The allegations border around the unprocedural allocation of some stands as the council rolled out a housing scheme recently.

Source: Corruption and abuse of office: Victoria Falls Town Clerk and 2024 CEO of the year suspended (04/12/24)

Read more: Stands corruption storm in Victoria Falls (11/06/22)

Victoria Falls tourist numbers surge 30pc (Zimbabwe)

DESPITE the challenges posed by the El Niño-induced drought, tour operators and industry authorities in Victoria Falls are reporting a remarkable surge in business.

Contrary to alarming social media claims that one of the Seven Wonders of the World is drying up, both the iconic water curtain at the main falls and upstream boat cruise activities have seen significant increases in visitor numbers over the past few months.

The Zimbabwe Parks and Wildlife Authority (ZimParks), responsible for the Victoria Falls rainforest and Zambezi National Park, has revealed an impressive 30 percent rise in visitors over the last three months compared to the same period last year.

This surge underscores the enduring allure of Victoria Falls, as tourists continue to flock to this natural marvel, defying the drought’s impact and reinforcing its status as a premier travel destination.

(November 2024)

Statistics released by the Zimparks show that about 1 300 visitors have been touring the rainforest daily in the past three months, representing a 30 percent increase from last year’s figures.

From August, September and October comparing the 2023 and the 2024 statistics, they show that on a daily average, 1 000 people were visiting Victoria Falls in 2023 as compared to an average of 1 300 visiting in 2024.

Tourism Executive and Shearwater Adventures Public Relations Manager, Dr Clement Mukwasi said it is normal that the Victoria Falls goes through various seasons, with the current period referred to as the low water season.

However, Dr Mukwasi said the city and the tourism business is doing well with upstream activities and the curtain of water still giving visitors the much anticipated spectacular experience.

“The water levels in the Zambezi River change from season to season. We are in what is called the low water level where we do not do activities such as rafting in the lower Zambezi. However, above the falls, the sunset cruise business is booming. We have multitudes enjoying the cruises on the Zambezi. The water depth that allows us to do cruises is more than 20 metres along the whole stretch where the activity is done.

“However, the speed at which such water plunges over the falls becomes very slow during the low water period. The curtain of water on the main falls is still there on the Zimbabwe side. On the Zambian side, the terrain is a bit higher and during this period, tourists go there to see the basalt rocks and access other top of the gorge areas that are naturally not accessible during the high water period,” said Dr Mukwasi.

Tourism Business Council of Zimbabwe Regional representative, Mrs Barbara Murasiranwa-Hughes also weighed in saying the falls are not dry.

“The Falls are not dry. They are still thundering. Every year, the Zambian side of the falls dries up, which is not new to this year and that is why people walk on dry rocks to enjoy the devil’s pool activity on the Zambian side.

This year, maybe because of the drought, there has been less water coming from the catchment area, so comparing year on year, the curtain has been smaller. “Tourism is doing great and activities like boat cruises are happening daily to show that there is water on the Zambezi River. International, regional and local tourists are still coming to view and enjoy the falls. “It is business as usual and we encourage all to come and see for themselves,” said Mrs Murasiranwa- Hughes.

Source: Victoria Falls tourist numbers surge 30pc  (03/11/24)

Cigarette stub started fire that destroyed decommissioned coaches worth US$40,000 – NRZ

THE National Railways of Zimbabwe (NRZ) has established that a cigarette stub caused an inferno that destroyed decommissioned coaches at its main station in Bulawayo in September.

40 coaches were destroyed in the blaze that engulfed the NRZ workshop with initial reports by the parastatal suggesting foul play.

This incident followed another fire that involved coaches in Harare, raising suspicions of arson attacks.

Appearing before the Parliamentary Committee on Public Accounts, NRZ general manager, Respina Zinyanduko said internal investigations point to a cigarette stub having been the cause of the fire.

“The initial report that I got from loss control as well as the report I got from a commission of inquiry that we set, it constituted of different departments of NRZ has indicated that it could be a fire was as a result of some employees, because we do not allow some people to smoke at work, some employees could have taken shelter in those coaches trying to hide and smoking a bit.

“One of them might have left a stub that was still burning and there was the wind; it then resulted in the spread of fire,” said Zinyanduko.

The decommissioned coaches had exceeded their operational life span and the NRZ was awaiting their disposal as scrap.

Zinyanduko told the Committee that NRZ lost US$40 000 in the value of the coaches as a result of the fire.

“The value that was lost was minimal because we had taken the seats from these coaches and they were fitted to those which were operational. These were more like shells that were parked with the intention to refurbish them in the future or disposing of them.

“The value that was there was on the scrap value of the assets, I examined the coaches one by one myself and they are still in a condition in which we can dispose of them as scrap metal. Those coaches in our books were carrying a value of about US$1,000 each because they were just shells,” said Zinyambuko.

Source: Cigarette stub started fire that destroyed decommissioned coaches worth US$40,000  – NRZ (30/10/24)

After incurring losses for years, NRZ in process of cancelling “toxic” 90s joint venture with Landela Safaris

 NATIONAL Railways of Zimbabwe (NRZ) is in the process of terminating a joint venture agreement with Landela Safaris after the parastatal suffered losses during the deal.

NRZ entered into a joint venture with Landela Safaris to lease its prime land in Victoria Falls in 1998.

According to the agreement, Landela Safaris would construct two houses and lodges, along with a commercial centre being developed on the land.

NRZ general manager, Respina Zinyambuko told the Public Accounts Committee Monday that the parastatal may have been prejudiced in the joint venture.

“What we have done is we wanted them to be compelled to submit the financials then we compare what we have so that at least we can see the potential prejudice. In that JV NRZ has 26 percent so it is a minority shareholder,” said Zinyambuko.

Zinyambuko told the Committee that NRZ are in the process of terminating the agreement which is currently under arbitration.

“We have realized that JVs will be very difficult for us while concentrating on our operations as NRZ people can overstate the operational costs and everything and you end up with nothing.

“So we have revisited all these JVs and some we have terminated and opted for outright lease. This one we are terminating the joint venture because we have realized we are not getting anything. Instead, we are opting for this other arrangement,” said Zinyambuko.

The national railway operator has been reportedly losing funds after years of mismanagement of its assets portfolio.

The management and board are making efforts to plug in the losses which will see the parastatal gaining profits from its ventures.

NRZ board chairperson Mike Madiro told the PAC committee that the Landela Safari deal has become “toxic”.

“What we have learnt is there were serious governance issues with this joint venture to the extent that there were no board meetings.

“The relationship between NRZ and the other parties was ‘toxic’ to the extent that when the management was trying to convene the board the other parties were refusing,” said Madiro.

Source: After incurring losses for years, NRZ in process of cancelling “toxic” 90s joint venture with Landela Safaris (29/10/24)

Island Tours Devalue Tourist Experience at Victoria Falls

(Zimbabwe, 25th September 2024).

The Mosi-oa-Tunya/Victoria Falls UNESCO World Heritage Listing places great emphasis on the protection of the immediate area of the Falls from tourism and other developments in an attempt to keep the views of the Falls as natural as possible and to preserve the experience of tourists, on both sides of the river.

Visitors to the Zimbabwean 'Rainforest' have their view of the Falls marred
by a group visiting the Devil's Pool and Livingstone Island 

from the Zambian side of the river.

For this reason a 'no new development' zone surrounds the core of the Site, yet the launch of tours to Cataract Island from the Zimbabwean side of the river, also highlights an existing issue on the Zambian side, where tours to Livingstone Island have been established for many years. The growth in popularity of the associated Devil's Pool activity in recent years especially has significantly increased the number and the visual impact of the tours, with groups of tourists clambering over the rocks being highly visible from the main tourism viewpoints on the Zimbabwean side of the river (as illustrated in the first photograph, above) and including temporary structures, erected each season, which are again visible from the Zimbabwean side of the river (second photo, below).

The view across to Livingstone Island from the Zimbabwean side of the river,

with temporary structures used for tourists in full view.

In response to the popularity of these tours, Zimbabwean authorities have controversially authorized the use of Cataract Island for similar activities, with yet further negative impacts on the view of tourists (third photo, below), whilst also ignoring the impacts of these tourist upon the fragile ground flora of the island (the last remaining area of the rainforest undisturbed by tourism), as well as an online petition against the use of Cataract Island for tourism which received over 40,000 signatories.

Visitors to the Zimbabwean 'Rainforest' now also have their view of the Falls 

marred by groups visiting Cataract Island.

The special status of the Victoria Falls as a National Monument, National Park and UNESCO World Heritage Site aims to protect their rich natural and cultural history for future generations, also ensuring that they remain a global tourism attraction. Yet Park Authorities on the south bank have in recent years approved a wave of tourism developments within the highly protected 'red zone,' part of an ongoing trend in developing private tourism concessions within the the wider National Park area and commercialisation of the Falls in search of ever increasing tourism receipts. For this increasingly devalued experience overseas visitors are charged an ever increasing visitor fee - currently US$50 for the Zimbabwean side of the river.

The UNESCO World Heritage Committee, having previously requested a full independent Environmental and Social Impact Assessment before the commencement of any tourism activities on Cataract Island, are yet to comment specifically on the launch tours. No ESIA process had been conducted, as evidenced by the lack of public disclosure before the launch of the tours in April 2021 (shortly after the UNESCO Monitoring Mission to the Site).

Further Information

Tours to Cataract Island are operated by Zambezi Crescent, managers of the upstream Victoria Falls River Lodge (also located within the highly sensitive 'red zone') under the promotional banner of the 'Cataract Pool' - see www.cataractpool.com.

Read more on the launch of tours to Cataract Island on our website here. 

Visit the Keep Victoria Falls Wild website for more on the wave of tourism development issues surrounding the conservation and protection of the Falls.

#keepvictoriafallswild #victoriafalls #Zimbabwe #Zambia #zambezi #UNESCO #worldheritage #overtourism #overdevelopment #zimparks

New Report raises questions over management of Victoria Falls World Heritage Site

A new independent report calls for strict action on illegitimate tourism developments within the Victoria Falls World Heritage Site and highlights serious questions over the wider management of Site in advance of the 46th Session of the World Heritage Committee, to be held in New Delhi, India over 21-31 July 2024.

The 2024 Victoria Falls State of Development Report (3.8mb), produced by Keep Victoria Falls Wild, calls for action on tourism developments which have been constructed in the 'no new development zone' (known as the 'High Ecologically Sensitive Zone' or HESZ) of the World Heritage Site in recent years and raises serious concerns over the management of the Site. 

"We recommend strong and specific action on recent developments in the HESZ, including the cancellation of approvals, removal of infrastructure and return of sites to their natural state (Baines Restaurant and Rock Pool); the cancellation of agreements relating to yet to be developed projects in the HESZ (Kandahar Camp and ‘Tree Lodges’ proposals); full review of existing developments within HESZ and cancellation of lease agreements if found to be in breach of Park or other regulations (Victoria Falls River Lodge, Old Drift Lodge, Zambezi Camp 'redevelopmets' and the Lookout Cafe). We also highlight what be believe are to be serious and significant shortcomings in the management and protection of the WHS HESZ relating to the River Jetty Site Section, Transport Corridor and Buffer Zone which we believe need to be addressed in the new Joint Integrated Management Plan process."

KVFW 2024 State of Development Report 

Read More

Download the Keep Victoria Falls Wild 2024 State of Development Report (3.8mb) 

Read more on all these issues and developments on the Keep Victoria Falls Wild website.

Follow our Facebook page Keep Victoria Falls Wild for latest news and updates.

Zimbabwe Park Authority release new Zambezi/Victoria Falls National Park General Management Plan

Keep Victoria Falls Wild, 6th July 2024. 

For immediate Release. No Embargo.

A new ten-year Zambezi/Victoria Falls National Park General Management Plan (2024-2034) was approved in April 2024 (ZPWMA, 2024). The Plan is publicly available on the Zimbabwe Parks and Wildlife Management Authority website (or direct download here [4.8mb]).

The Plan presents a new map showing a proposed revised WHS boundary and management zonation, due to be presented in the new Joint Integrated Management Plan (JIMP) for the Victoria Falls World Heritage Site (and which was due for submission to UNESCO by the end of June 2024).

Map showing proposed (amended) boundary and management zones for the Victoria Falls World Heritage Site. From 2024 Victoria Falls/Zambezi National Park Management Plan, p.22. (click image for larger view).

The map confirms upstream riverside fringe as being in the red zone Highly Ecologically Sensitive Zone (HESZ) which prevents all new development. This is a major win for our campaign against recent developments in this zone. For the last few years Park Authorities, and the Director-General himself, have been claiming this area was part of the Medium ESZ (MESZ) and which therefore allowed suitable tourism development - as evidenced in the Director General's letter of approval for the Baines Riverside Restaurant development (ZPWMA, June 2021a, download here) which states:

"The construction of a semi-permanent restaurant is provided for in the Joint Integrated Management Plan since the proposed development area is under the Medium Ecologically Sensitive Zone." (ZPWMA, June 2021)

Dr F U Mangwanya’s letter refers to the 2016 JIMP document in support of this claim. The 2016 JIMP map and text is highly ambiguous (perhaps deliberately so) but, on close inspection, both show the area of the riverine fringe above the Falls as within the red/HESZ zone (KVFW, 2023a; 2023b). The letter also refers to an internally produced supporting document (ZPWMA, June 2021b, download here) which also incorrectly assumes the area to be within the MESZ, as does the supporting EIA document for the development.

There needs to be a thorough investigation into how such a misinterpretation can have been made without being recognised and prevented by other parties (they appear to have all accepted the developers claim that the site is within the MESZ). Steps need to be taken to ensure that such errors of judgement cannot be made again and that ‘no development zones’ remain exactly that, permanently, and not just for the duration of short or medium term management plans or until someone in a position of authority changes their mind (or makes a mistake).

Now that all parties agree that the area is in fact within the HESZ 'no new development' zone it leaves the obvious question as to what is to be done about the recent construction of the Baines Riverside Restaurant (opened in mid-2023) and Zambezi Drive 'Rock Pool' bar (also established during 2023) developments along the riverine fringe immediately upstream the Falls, and the proposed Riverside Tree Lodge and Kandahar Camp developments where concession agreements have been again been approved by Parks in areas supposedly protected under the HESZ and where development has yet to begin on the ground.

The area of all these developments is identified in the 2007 and 2016 JIMP documents as being within the HESZ. According to the new map, and presumably new JIMP, the area remains in the HESZ. As these development concessions have been awarded in contravention of the agreed protections for the Site we believe the lease agreements made by the Park Authority with the relevent third parties must be immediately terminated, all trace of recent developments, where present, removed and the areas returned to their previous natural state. Anything short of this will be a mockery of National Park regulations, legal protections and World Heritage Site status.

It also raises question marks over longer standing developments such as the Victoria Falls River Lodge and Old Drift Lodge, both of which were constructed within the Zambezi National Park since this area was first identified as being within the WHS HESZ in the 2007 JIMP (opened in 2012 and 2018 respectively). The Victoria Falls River Lodge in particular has seen extensive subsequent expansion. These developments need to be reviewed against their original EIA approvals and concession agreements and current lease periods must not renewed if they are found to have exceeded or breeched these terms. No further expansion or development should be allowed. If leases are suspended sites must be returned to previous natural state.

There is also the issue of the recent redevelopment of the Zambezi National Park Zambezi Camp Lodges, recently undertaken in partnership with the operators of the Victoria Falls River Lodge, Zambezi Crescent. The redevelopment has seen the construction of new infrastructure along the riverbank, again in contravention of the HESZ protected status of this area. Full disclosure of these developments are needed and impacts reviewed. If the developments are found to be breech of Park or other regulations approval should be withdrawn and action taken to remove offending structures.

And downstream from the Falls there is the Wild Horizons Lookout Cafe, again within what is now confirmed as the HESZ and which has seen significant expansion of its development footprint in recent years. Elements of this development appear to also infringe National Park regulations on permitted development and use of permanent materials. Again consideration should be given to terminating lease concession at end of current period if this is found to be the case and the site returned to its natural state.

Dr F U Mangwanya, the Director-General of the Zimbabwe Parks and Wildlife Management Authority, needs to explain how such a fundamental and significant mistake as mis-identifying part of the HESZ could be made and take immediate action to rectify the impacts of this error. Dr Mangwanya, who describes himself on his Linkedin profile as a 'passionate conservationist,' has overseen more damage to the natural environment of the immediate Falls environment than has been witnessed in the last fifty, if not hundred, years. His name will now be recorded as the man who approved tourism developments within the Falls highly protected 'no new development' area. And once he has rectified the damage done during his tenure his should reconsider his position.

References

State Parties (2007) 2007-2012 Victoria Falls/Mosi-oa-Tunya Joint Integrated Management Plan (external download, opens in a new window).

State Parties (2016) 2016 Victoria Falls/Mosi-oa-Tunya State of Conservation Report and 2016-2021 Victoria Falls/Mosi-oa-Tunya Joint Integrated Management Plan (external download, opens in a new window).

Zimbabwe Parks and Wildlife Management Authority (June 2021a) Application (former Railway Water-Pump Station, Victoria Falls Long Term Lease. Letter from Dr F U Mangwanya, Director-General, ZPWMA, 22 June 2021 (jpg download [312 kb], opens in a new window).

Zimbabwe Parks and Wildlife Management Authority (June 2021b) Guidelines for the Establishment of New Semi-Permanent Structures in the Mosi-os-Tunya/Victoria Falls World Heritage Property (pdf download [2.88 mb], opens in a new window).

Zimbabwe Parks and Wildlife Management Authority (2024) Zambezi/Victoria Falls National Park General Management Plan (2024-2034). April 2024. (pdf download [8mb], opens in a new window)

Focus On Victoria Falls As Unrealistic Government Target Drives Unsuitable Development Rush

4th June 2023

Keep Victoria Falls Wild

Just over a week after President Mnangagwa suddenly and very publicly unveiled to the world the foundation stone for a 10,000-steat international cricket stadium at Victoria Falls, the Zimbabwe Tourism Authority has quietly published their Annual Tourism Trends and Statistics Report for 2023 (available online here). The report shows that while the country's tourism sector is well on the way to recovery after the lows of the last few years and continuing impacts from the global pandemic, ambitious government plans to develop of US$5 billion tourism economy by 2025, a core part of the National Tourism Recovery and Growth Strategy, are looking increasingly unrealistic. Meanwhile the Victoria Falls, the country's primary tourism destination, faces unprecedented development pressures which threaten their status as a World Heritage Site.

Zimbabwe's Tourism Sector on Road to Recovery

National tourist arrivals for Zimbabwe rose by 54% in 2023 compared to 2022, with a total of 1,602,781 reported arrivals. Immigration data, however, recorded just 114,725 actual tourist visitors (with 445,573 identified as 'in transit,' 650,109 visiting friends and relatives and 282,681 on business). 

Visitors from overseas markets recovered to pre-pandemic levels with 469,240 overseas arrivals, although visitors from African countries reached 1,133,541, significantly down on pre-pandemic highs of around 2,000,000 visitors. Arrivals from European countries reached 208,710, while arrivals from North America reached new highs of 121,953 and arrivals from Asian markets rose to 99,638.

The Report indicates that Zimbabwe's tourism sector is on course to recover to pre-pandemic levels in 2024, levels which saw over 2,000,000 national arrivals annually between 2015 and 2019 with highs of over 2,500,000 in 2018. 

Government Target of US$5 Billion Tourism Economy by 2025 increasingly unrealistic

The tourism sector was reported to have generated US$1.16 billion to the national economy, against US$0.91 billion in 2022. Investments in the tourism sector decreased to US$172.2 million from US$312.5 million recorded in 2022. The country's increasingly unobtainable ambitions for a US$5 billion tourism economy by 2025 would mean a doubling of the sector in 2024 and again in 2025, and only then reaching US$4.64 billion.

The drive towards the ambitious US$5 billion target has seen increasing tourism development pressures threaten the fragile natural environment if the Victoria Falls, the country's prime tourism destination, while nationwide the country's once thriving tourism sector suffers from poor transport infrastructure and lack of investment.

Victoria Falls development threatens World Heritage Status

The race to develop increased tourism capacity has seen the approval of numerous new hotel developments, including the planned Victoria Falls Resort, with 160-rooms, including six river-facing chalets, with seven specialty restaurants, leisure facilities and high-end shops all squeezed into a 3.2 hectare riverside site sandwiched between the A'Zambezi and Palm River Hotels. 

The river-frontage along this section is part of the Victoria Falls National Park, and Victoria Falls World Heritage Site, and the site itself is subject to restrictions on development as part of the surrounding 'Buffer Zone.' The proposals are therefore totally out of scale and inappropriate to the sensitivity of the site and will no doubt add to concerns over the future of the Falls' World Heritage Site status.

Along with several other unsuitable and unwelcome tourism developments in the Victoria Falls National Park (most notably the Baines Restaurant) this proposal should have been notified to UNESCO as part of the State of Conservation reporting process. However the joint State authorities of Zambia and Zimbabwe decided in their latest report to claim that there are currently no new or proposed developments in the World Heritage Site or Surrounding Buffer Zone (Authorities fail to notify UNESCO of new developments at Victoria Falls, 13th May 2024).

Missing Master Plan Opens up Opportunistic Wave of Development

Meanwhile work is still in progress on a new development 'Master Plan' for the City which is supposed to sensitively guide and shape development, replacing the previous document which has been in place since the mid-1970s. It appears to all extents and purposes that the City Council have thrown the old plan in the bin before approval of the new plan and opened up an opportunistic wave of  inappropriate and unsuitable developments. 

The new Master Plan was primarily commissioned to review and incorporate government plans for the development of the Masuwe Special Economic Zone (MSEZ) on a 1,200 hectare site 10km south of the City. Developments announced so far include a four-star hotel with 5,000 seat conference facility, medical facilities, a golf estate and a shopping mall (to be developed by Old Mutual Assurance on 55 hectare plot) and an international cricket stadium (to be developed by Zimbabwe Cricket on a 10 hectare plot).

Controversial Plans for Cricket Stadium latest in wave of unsuitable developments

Which brings us back to the ground-breaking event hosted by President Mnangagwa on 23rd May 2024 on a wide open expanse of land, freshly removed of all vegetation with not a tree or leaf left. Yet with the EIA stakeholder consultation process still ongoing - the first that many local stakeholders heard of the plans was shortly before of the ground-breaking - the development cannot have received final EIA approval (unless it has been approved before the EIA has been finalised). 

There has also been no details on the total cost of the development, or clarification of where the funding is coming from, with Zimbabwe Cricket claiming that it will be funded with grants of US$5-10 million from the International Cricket Council (Concerns grow over costs and impacts of controversial Victoria Falls Cricket Stadium proposal, 24th May 2024).

The site of the MSEZ in part borders the southern section of the Victoria Falls National Park, designated part of the Victoria Falls World Heritage Site (separated by the main Victoria Falls-Bulawayo transport corridor) and again should have been notified to UNESCO in the recent State of Conservation report (Zimbabwe Government plans to develop Victoria Falls ignore impacts on World Heritage Site, 22nd May 2024). 

All of which makes the ground-breaking event look like a rather premature attempt to lure vital foreign investment which will undoubtedly be needed to develop the wider project and vast sums which will be required to bring essential utilities and services to the site - most notably water.

Meanwhile the City Council struggles to deliver basic utilities and services to a growing residential population - estimated at over 35,000 in the 2022 national population census but widely believed to be significantly higher with an estimate of 100,000 indicated in the 2021 Strategic Environmental and Social Impact Assessment Report (State Parties, 2021) - and limited space for expansion. It looks like Zimbabwe's development dream is fast turning into a development delusion.

Read more on the wave of tourism developments which threaten the Victoria falls World Heritage Site on the Keep Victoria Falls Wild website.

Multi-million-dollar hotel set for Vic Falls

 A NEW hospitality real estate investment trust (REIT) is scheduled to be listed on the Victoria Falls Stock Exchange (VFEX) after Zesa Pension Fund and Cresta Hotels partnered to build a 4-star hotel in Victoria Falls, businessdigest can report.

The project, which is expected to cost US$49 million in total, will be developed under the Mosi-oa-Tunya Real Estate Investment Trust (Mosi REIT), with 24 million units available for private placement at a price of US$1.

The hotel, which will have 180 rooms, conference facilities and other entertainment activities, will be operated by Cresta Hotels on a lease basis.

The project was unveiled on the side-lines of the Zimbabwe Association of Pension Funds 49th annual conference in Victoria Falls last week.

The project's financial advisor, Intellego Investment Consultancy head for corporate advisory services, Owen Namusi said the units will be listed on the VFEX with the sponsor putting in about US$7 million.

"We are offering 24 million units at a unit price of US$1 in this particular price-based exercise. We are targeting to reach US$24 million. We are open to receiving investment subscriptions in ZiG (Zimbabwe Gold)," he said.

"This is, after all, a hospitality tourism-themed real estate investment trust, unlike, other REITs that you may know that may focus on commercial real estate, some that may focus on a mixture of industrial and office space. This REIT's primary target is to really establish a portfolio of hospitality-focused assets.

“So, we are looking at hotels. We are looking at related sort of infrastructure, so you can also potentially have something like a theme park that is set up in a tourist destination, which can also then be part of this REIT going  forward.”

According to Namusi, they intend to expand their portfolio of hospitality assets under the Mosi REIT's umbrella in the future.

The owners of Mosi REIT anticipate receiving rental income as soon as the assets are operationalised.

Under the terms of the REIT model, sponsors and investors will pool their resources to purchase the facility's assets, and Cresta will run it to generate income.

Namusi stated that they expected to have at least seven case players over the next five to 10 years, and they looked forward to having multiple assets come on board on a regular basis.

"We are in the second quarter of 2024. Private placement is opening for commitments and subscription flows. So, probably in the next month or so we will commence actual construction activities on this particular site,” he noted.

“Then we do expect the private placement window to close by the fourth quarter of 2024, and by then, we expect investors who are interested to make their commitments. I think from a logistical point of view, we can do this."

The project is expected to be completed in 2027.

It will draw income from the tourism sector, greatly boosting the investment return and preserve the retirement benefits for members and pensioners.

Cresta Hotels is one of Southern Africa’s leading hotel management groups, operating businesses and resort hotels in Zimbabwe, Botswana and South Africa.

Celebrated leisure hotels in the Group are the Mowana Safari Resort & Spa and Cresta Sprayview in Victoria Falls.

Cresta Marakanelo is the operating company for the 11 Cresta Hotels in Botswana.

Cresta started hotel operations in 1958, when it began running the Jameson Hotel in Harare. Cresta Holdings is a hotel management company registered in Botswana.

Source: Multi-million-dollar hotel set for Vic Falls (24th May 2024)

Concerns grow over costs and impacts of controversial Victoria Falls Cricket Stadium proposal

(24th May 2024)

Keep Victoria Falls Wild

Victoria Falls, Zimbabwe: President Mnangagwa yesterday (23rd May 2024) laid the foundation stone to mark the beginning of work on the construction of the controversial Mosi-oa-Tunya International Cricket Stadium in Victoria Falls, part of an ambitious government drive to develop a US$5 billion national tourism economy by 2025 (The Chronicle, May 2024).

The 10,000 seater stadium is to be developed by Zimbabwe Cricket in preparation for the 2027 World Cup which will be jointly hosted by South Africa, Namibia and Zimbabwe. The construction of the stadium will apparently be funded with a grant of "between US$5 million and US$10 million" from the International Cricket Council, although no final estimate of the total cost of the development has been announced, and no developer has yet been identified to undertake the construction, which is proposed to include the construction of a playing field, practice nets, scoreboards, broadcast and media centre, changing rooms, hospitality facilities, grandstand and other spectator areas"

Concept design for the proposed Victoria Falls Cricket Stadium

The stadium is part of the Government initiative to lure investment in the development of the Masuwe Special Economic Zone, a 1,200 site within virgin woodland and part of the Jafuta-Masuwe Estate located about 10 kilometres south of Victoria Falls.

To facilitate the development of the Masuwe Special Economic Zone the Government established the Mosi-oa-Tunya Development Company (Pvt) Ltd (MoTDC Ltd), a State enterprise company, as an investment vehicle for the development and transferring ownership of 274 hectares to the company for the first phase of the project. 

Its nine-member board, chaired by Mrs Shiela Sidambe, was appointed in 2021 and was given the mandate "to deliver infrastructure development in Victoria Falls by expediting feasibility studies for bulk infrastructure and appropriate diligence to register the company’s presence with a solid brick and mortar project" (dailynews.co.zw, August 2021). The government expects that the company to deliver on its mandate in the lifespan of the National Development Strategy (NDS1, 2021 to 2025).

Without the necessary funds to develop the ambitious project the MoTDC Ltd offered Old Mutual Life Assurance, Zimbabwe, the exclusive lease of over 55 hectares within the development, with Old Mutual Life Assurance in return agreeing to undertake a financial feasibility study for the wider project, calculated to cost a precise US$430,948.29 (yes, that's 29 cents). Their report conveniently concluded that the project would generate an "acceptable profit margin of US$57,696,447 which is 15.5 percent and 18.2 percent of gross development value and development cost, respectively" (The Sunday News, March 2023). Old Mutual first announced plans for the development of a four-star hotel, with 5,000-seater conference centre, medical facilities, a golf course and shopping mall in June 2021 (The Zimbabwe Mail, June 2021).

Map showing area of the Mosi-oa-Tunya/Victoria Falls World Heritage Site and location of the proposed Masuwe Special Economic Zone development (click image for larger view).

In addition Zimbabwe Cricket were allocated 10 hectares of land for the construction of the international cricket stadium and supporting facilities on a 25-year lease basis.

Zimbabwe Cricket chairperson Tavengwa Mukhulani previously commented:

“We have somehow found favour with the Victoria Falls Town Council who have given us a piece of land which we think is ideal to develop a stadium. Our focus is to decentralise cricket and to make it available and accessible to the fans. We don’t want a Midlands fan to travel to Harare to watch a player from Midlands. You want them to watch that player in their backyard; it stimulates interest and just helps grow the game.” (iharare.com, May 2024)

The comments appear to ignore that Victoria Falls is isolated from the major urban areas and rest of Zimbabwe due to poor maintenance of the country's transport infrastructure - with no public services by rail and the main transport road in urgent need of upgrade.

The proposals follow failed attempts by the Zimbabwe Rugby Union (ZRU) to raise investors to build a rugby stadium at Victoria Falls in 2018 and similarly unrealised plans for a F1 Grand Prix circuit (The Chronicle, July 2021).

Foundation stone for the unrealised Grand prix circuit development

(click image for larger view).

A Hard Sell

Barbara Rwodzi, the Tourism minister, was recently in South Africa trying to tempt further investors.

"Since she was appointed, Rwodzi said she had been running around to make use of the allocated land. 'I have 261 hectares now. Ten hectares have gone to Cricket Zimbabwe to build this stadium with its amenities, a three-star hotel and others,” the Tourism minister said.

“We are here, your government, with terms and conditions, which are quite flexible. My boss (Mnangagwa) told me it ‘is a special economic zone for lease for 25 years. But listen to the investor, talk to the investor and always come to us and discuss if there are any adjustments that need to be made’.

“We have vast land in Victoria Falls, 1,200 hectares in an area called Masuwe that is for Special Economic Zones for tourism only. Two hundred and seventy-one hectares is under the Ministry of Tourism and Hospitality Industry. It has a title deed. The 1,200 hectares used to belong to our ministry,” she added.

“It is ready land,” Rwodzi told the conference. No stories, no back and forth, I have the titled deed. The conversation starts and ends here.” (The Independent, May 2024)

Yet despite her best efforts, it appears that the Masuwe development project has so far failed to attract additional investors, with no further developments yet announced within the Masuwe development zone.

Development Costs

The development of the first phase of the Masuwe project, covering a total of 274 hectares and including the stadium and hotel facilities, will necessitate a significant expansion in the City's utilities infrastructure, with the construction of bulk water supply systems and the development of internal water, sanitation, roads and storm-water drains estimated to cost of US$120 million (The Sunday Mail, March 2023). There has yet to be any announcement on the funding or timescale for these works leaving residents wondering who will be picking up the bill. It is estimated that to maintain the cricket field alone will require 2,500 to 3,000 litres of water every day.

There are also transport infrastructure implications, with no train service to the Falls and the main road dangerous and in urgent need of repair. 

A second phase will see the development of services to the remaining 930 hectares at an estimated cost of approximately US$85 million.

The site of the proposed development - already cleared of trees and stripped of all biodiversity

Environmental Concerns

The proposed construction of the cricket stadium has come under criticism, with Joanah Mamombe, chairperson of the parliamentary portfolio committee on Environment, Wildlife, Tourism and Hospitality raising questions in the National Assembly over potential negative impacts on tourism and the Falls' World Heritage Status.

"Victoria Falls is renowned for its natural environment and wildlife. Our tourism industry is heavily reliant on nature-based attractions... There are many other cities in Zimbabwe that could host the stadium that has been proposed thereby distributing the economic benefits without sacrificing the environmental integrity... UNESCO heritage status is also at risk as we note that Victoria Falls was previously facing serious risks of losing the UNESCO world heritage due to the developments that threaten its natural state... Instead, we should explore alternative locations that do not compromise our valuable natural resources and conservation efforts" (NewZimbabwe.com, May 2024).

At the ground-break ceremony the President attempted to dismiss these concerns, making the extraordinary claim that the development would somehow 'enhance the natural heritage' of the Falls.

“This project, here in Victoria Falls, is most welcome as it will enhance the rich natural heritage associated with our premier resort city” (The Chronicle, May 2024).

The President also commented, rather ambiguously:

“Architectural designs and the built environment within the Masuwe Special Economic Zone and across the City of Victoria Falls should seamlessly blend with the natural environment, towards promoting sustainable tourism and socio-economic development” (The Chronicle, May 2024).

In promoting the development Zimbabwe Cricket envisage the construction "blending into the surrounding forest and connecting with the context of the resort town" (thestadiumbusiness.com, May 2024).

UNESCO, however, are yet to comment on the proposals -  primarily due to the fact that Zimbabwean authorities have so far failed to formally notify them of the Masuwe project, or its potential impacts on the Victoria Falls World Heritage Site, which borders part of the development (Victoria Falls Bits and Blogs, May 2024).

Read the background to the Masuwe SEZ development on the Keep Victoria Falls Wild website 

Read more on the wave of tourism developments which currently threaten the Victoria Falls World Heritage Site on the Keep Victoria Falls Wild website and follow us on Facebook for latest updates.

References

The Zimbabwe Mail (June 2021) Old Mutual, Govt strike Vic Falls land deal for new hotel project, 2 June 2021.

The Chronicle (July 2021) Victoria Falls F1 circuit construction reaches major milestone. 2 July 2021.

dailynews.co.zw (August 2021) Minister appoints new Mosi Oa Tunya board, 30th August 2021.

The Sunday Mail (March 2023) Victoria Falls: US$200 million tourism project comes alive, 22 March 2023.

The Sunday News (March 2023) Govt okays Victoria Falls SEZ, 22nd March 2023

The Zimbabwe Independent (May 2024) Zim govt unveils plan for Vic Falls hospitality gems 10th May 2024.

NewZimbabwe.com (May 2024) Parliament raises red flags on proposed Victoria Falls cricket stadium, 22nd May 2024

The Chronicle (May 2024) Victoria Falls cricket ground to broaden tourism products, 24th May 2014.

thesadiumbusiness.com (May 2024) Work begins on Victoria Falls’ Mosi-oa-Tunya International Cricket Stadium, 24 May 2024

Victoria Falls Bits and Blogs (May 2024) Zimbabwe Government plans to develop Victoria Falls ignore impacts on World Heritage Site, 22nd May 2024

Zimbabwe Government plans to develop Victoria Falls ignore impacts on World Heritage Site

(22nd May 2024)

Plans by the Zimbabwean Government to develop the Masuwe Special Economic Zone and Monde Tourism Town at Victoria Falls, part of a drive to develop a US$5 billion tourism economy by 2025, appear to ignore potential negative impacts on the Victoria Falls World Heritage Site.

Cabinet approved implementation of the Masuwe Special Economic Zone project (MSEZP) in March 2023 after a feasibility study endorsed the profitability of the plan (The Sunday News, March 2023). Plans for the development of the Masuwe Special Economic Zone include the controversial construction of an international standard 10,000 seat cricket stadium (NewZimbabwe.com, May 2024a) as well as a four-star hotel with 5,000 seat conference facility, medical facilities, a golf estate and a shopping mall.

Both the Masuwe Special Economic Zone and Monde Tourism Town developments in part border the southern section of the Victoria Falls National Park, designated part of the Victoria Falls World Heritage Site. Along with other recent tourism developments at the Falls, the two significant development schemes are not disclosed to UNESCO in the latest State of Conservation Report as required under the World Heritage Listing (Victoria Falls Bits and Blogs, May 2024).

Map showing area of the Mosi-oa-Tunya/Victoria Falls World Heritage Site and location of the proposed Masuwe Special Economic Zone and Monde Tourism Town developments (click image for larger view).

The area of the Victoria Falls World Heritage Site is supposed to be protected by a 500m 'Buffer Zone' which surrounds the site and aims to restrict development and prevent a 'hard' boundary between developed and natural areas (State Parties, 2007). The proposed develpment schemes for both the Masuwe Special Economic Zone and Monde Tourism Town appear to make no concession for this zone.

The Masuwe development in partcular will have impacts upon the Masuwe river, with sewage and landfill sites adjoining the river, and which afterwards flows through the World Heritage Site to the Zambezi. The development will also place additional demands upon the city's already overloaded water and electricity needs, requring an expansion of water extraction from the Zambezi above the Falls.

The proposed construction of the cricket stadium has also come under criticism, with Joanah Mamombe, chairperson of the parliamentary portfolio committee on Environment, Wildlife, Tourism and Hospitality raising questons in Parliament over potential negative impacts on tourism and the Falls' World Heritage Status.

"Victoria Falls is renowned for its natural environment and wildlife. Our tourism industry is heavily reliant on nature-based attractions... There are many other cities in Zimbabwe that could host the stadium that has been proposed thereby distributing the economic benefits without sacrificing the environmental integrity... UNESCO heritage status is also at risk as we note that Victoria Falls was previously facing serious risks of losing the UNESCO world heritage due to the developments that threaten its natural state... Instead, we should explore alternative locations that do not compromise our valuable natural resources and conservation efforts. " (NewZimbabwe.com, May 2024b).

Speaking in December 2023, Victoria Falls City economy development and marketing manager Mr Ngqabutho Moyo was reported stating “We want to turn the destination into a family and 24-hour city like Las Vegas” (The Herald, December 2023).

More recently, the town's new mayor, Mr Prince Thuso, commented “Council is passionate about development and is on a crusade to lure development to the City of Victoria Falls” (The Zimbabwe Independent, May 2024).

Read the background to the Masuwe SEZ development on the Keep Victoria Falls Wild website 

Read more on the wave of tourism developments which currently threaten the Victoria Falls World Heritage Site on the Keep Victoria Falls Wild website and follow us on Facebook for latest updates.

References

The Sunday News (March 2023) Govt okays Victoria Falls SEZ, 22nd March 2023

The Herald (December 2023) Council to turn Vic Falls into ‘little Las Vegas’, 27th December 2023

NewZimbabwe.com (May 2024a) Vic Falls cricket stadium to be completed by August 2025, 15th May 2024

NewZimbabwe.com (May 2024b) Parliament raises red flags on proposed Victoria Falls cricket stadium – says it compromises conservation efforts, 22nd May 2024

The Zimbabwe Independent (May 2024)Vic Falls under fire over irregular land sale, 17th May 2024.

Vic Falls under fire over irregular land sale

 TOP Victoria Falls City Council officials were this week alleged to have unprocedurally extended payment deadlines for the sale of a US$2,8 million commercial stand to Midlen Investments, which plans to construct a luxurious Arab-themed hotel, the Zimbabwe Independent can exclusively reveal.

Documents gleaned by this newspaper showed that  Victoria Falls City Council on January 8 published a notice for the sale of stand number 1815, which bid was awarded to Midlen at a cost of US$2,8 million.

Terms of the lucrative deal indicate that Midlen was obligated to pay a 30% deposit, amounting to US$840 000 by April 30.

However, investigations by this publication show that the local authority bosses extended the deadline to June 30 without a full council resolution as required.

This was after Midlen had failed to pay its deposit within the required time-frame.

Under such circumstances, as spelt out by local governance dictates, rights awarded to the winning bidder are forfeited if the party fails to meet terms of the agreement.

Subsequently, the second most competitive suitor is given the green light to purchase the property. In the case of the stand in question, the Zimbabwe Stock Exchange-listed leisure giant, Rainbow Tourism Group (RTG) came second, with a US$2,5 million bid.

A company called Hillfonic Investments was vying for the same asset, while MJ Air weighed in with US$2,4 million. As documents show, the balance for the purchase of the land would be serviced within 18 to 24 months after the deposit is paid.

“A Call for Expression of Interest (VFCC/S1815/0124) (the CFEOI) to purchase and develop commercial land being Stand 1815 Victoria Falls (the Investment Property) was made by the City of Victoria Falls on the 8th of January 2024 in terms of Section 152 of the Urban Councils Act (Chapter 29:15),” the documents read in part.

“Midlen Investments (Private) Limited (the Company) participated in the CFEOI and was selected as the winning bidder upon adjudication by the City of Victoria Falls.

“The City of Victoria Falls requires a 30% deposit (US$840 011) for land purchase. The

amount is payable strictly in United States dollars and is due by the 30th of April 2024.

“The balance of US$1 960 026 is to be paid over a period yet to be discussed with the City of Victoria Falls. Indications are that it will be paid over a period of 18 to 24 months in equal quarterly instalments. No interest accrues on the balance,” the documents state.

Midlen managing director Ngonidzashe Manjeru told the Independent that his firm was given the extension to settle the deposit to the Vic Falls City Council.

He did not specify whether the extension was granted by the local authority management or by a full council.

“We are on course for the settlement of the purchase price, we applied for extension of time,” he said this week.

“At this stage I think I have given you enough information. We are not privy to such technicalities and council processes.”

The mayor, Prince Thuso declined to comment on how the decision was made.

He told the Independent: “Council is passionate about development and is on a crusade to lure development to the City of Victoria Falls.”

“Midlen Investments won a bid to develop a hotel in Victoria Falls. More details about the development will be made public as the development unfolds.”

Thuso’s responses were addressing questions posed by the Independent focusing on whether the decision to extend the payment deadline was made by management or a full council. This publication also questioned the mayor on whether a due diligence exercise was conducted on the suitability of Midlen.

A source close to the transaction said management acted unilaterally when it gave Midlen the extension.

“As councillors, we are not aware of any extension, unless the extension was given by management without council resolution,” the source said.

“Management officials extended it without seeking council approval.

No item was ever brought to the attention of council or any of its committees for consideration to vary that standing policy of council.

“It is improper. It is not binding. The second best bid should be given the offer. A bid by a leading hotel group in the country came second though it was dismissed.

“Management tends to offer these tenders to companies owned by dubious characters. They shun big corporations because they do not have room to budget for bribes,” the source told the Independent on condition of anonymity.

Town Clerk Ronnie Dube had not responded to questions posed by the Independent at the time of going to print.

A search at the Companies Registry in the capital shows that Midlen was registered in Bulawayo in 2008 under company number 27006.

Outside the purchase price, Manjeru said Midlen would mobilise US$121 432 347 to build a six-star hotel tailored to attract “high end clientele including those of the Muslim religion”.

“Our bid, which was the highest evaluated bid and the winning bid among the five  bidders was as follows: US$2 800 037 for the purchase of the land and US$121 432 347 for the development of the proposed hotel. The total bid value was US$124 234 382,” he said.

“The proposed hotel construction is going to be funded through investor funds. The proposed hotel is going to be the first six star hotel in Zimbabwe and the first to be Halal compliant, targeting the high-end clientele including those of the Muslim religion.

“The proposed hotel is set to be completed within the next 24 months, all things being equal.”

Documents seen by this publication indicate that Midlen would dispose of 99% of its equity to a financing partner in a transaction valued at US$3,3 million.

As documents show, an evaluation done by Bard Real Estate pegged the value of the asset at US$3,5 million.

“It is proposed that the financing partner subscribes for 99% shareholding in the company for a consideration of US$3 300 037,” excerpts from documents viewed by this publication read.

“The promoters obtained a copy of a valuation report of the investment property by Bard Real Estate, which placed the value of the investment property at US$3 550 000 translating to US$216,95 per square meter.”

If Midlen’s transaction sails through, the outfit claims that it will build a hotel targeting “the princes and the Arabic elites who are used to a high end, luxurious lifestyle, the types that travel in expensive private jets but are strict subscribers to and observers of the Islamic Halal laws”.

Source: Vic Falls under fire over irregular land sale (17/05/24)