Mount Meru Hotel, Arusha, Tanzania The US$24-million refurbishment of the Mount Meru Hotel in Arusha, Tanzania, is being funded by the Southern Africa Enterprise Development Fund (SAEDF). Established in October 1994 by the former US President William Jefferson Clinton, former South African President Nelson Mandela, and the US Congress, for the specific purpose of providing funding to stimulate the creation and expansion of small and medium-sized indigenous businesses throughout Southern Africa. This was part of the Initiative for Southern Africa (ISA) which reflects USAID’s recognition of the southern Africa region’s economic potential.

The promotion of enterprise development is aimed at stimulating social development and is designed to have an economic impact in the region. SAEDF provides wholesale and retail long-term risk capital to promising enterprises from indigenous groups that might otherwise have been ignored by potential investors in the general marketplace. It also co-invests with other institutions or organizations that share the same investment objectives.

The fund supports businesses that are already profitable or that have a clear path to profitability. It also focuses on proprietary investment opportunities and is an active investor with majority or significant minority ownership, board seats, voting and information rights. When exiting a project, the fund undertakes risk mitigation and skills transfer. The investment objectives of SAEDF are to achieve a superior rate of return on investments in the region due to its successful track record, experience in the region, impeccable reputation, disciplined investment approach, and broad network of relationships. It also seeks to leverage the financial resources of SAEDF to attract additional investment, thus multiplying the economic benefits of SAEDF investments and loans.

The SAEDF also:

  • Invests in enterprises that have the potential for significant job creation, particularly among historically disadvantaged people
  • Monitors progress and provides technical & managerial assistance to investees in order to build capacity within these enterprises and to facilitate transfer of business skills
  • Contributes to the economic development of the southern Africa region by spreading investment activity throughout
  • Encourages cooperation between investee companies and US businesses and development agencies, as well as others operating in the region.

The SAEDF has already provided more than US$80-million in financing to indigenous private business in Southern Africa. It is one of 11 enterprise funds of the U.S. government.

The refurbishment of the Mount Meru Hotel in Tanzania, is a prime example of the quality and passion the SAEDF puts in each project. The Hotel will re-open end of 2010 and has already created a lot of additional work and opportunities for the local Tanzanians. For more information on SAEDF visit www.saedf.com or on the project www.mountmeruhotel.com.

Zabulan Hospitality, a South African based Hotel management and marketing company, was awarded the full management and marketing contract for this prestigious development.

Zabulan Hospitality, Mount Meru Hotel
Contact Mariki Theron, +27(0)83 375 3973 experiences@octagonal.co.za