Request for Proposals

ZAMBIA DEVELOPMENT AGENCY

Mukuba Hotel Limited

Invitation for Expressions of Interest

This is a summary of the business of Mukuba Hotel Limited (“the Company or the Hotel”). No representation or warranty, express or implied, is given by the Zambia Development Agency (ZDA), Zambia International Trade Fair (ZITF) the Government of the Republic of Zambia (GRZ) or any of their ministries, agencies, employees or representatives, or any other person as to the accuracy or completeness of its contents. The only representations or warranties that will be made are those that may eventually be included in a definitive agreement to an acceptable proposal to acquire majority stake/equity in the Company which will pave the way for the redevelopment of Mukuba Hotel. Neither this profile nor any of the information contained in it shall form the basis of any contract for sale of the Company or any part of the Company, nor does it constitute an offer or invitation to acquire any shares or interest in the Company. Neither the receipt of this profile by any person nor any information contained in it or supplied with it or subsequently communicated to any person in connection with the proposed transaction constitutes the giving of investment advice by ZDA, ZITF, GRZ, or their officers to any such person. Each such person should make his/her own independent assessment of the merits or otherwise of becoming a strategic equity partner and should seek its own professional advice. Each person or group of persons shall bear their own costs.

Zambia Development Agency
Privatisation House
Nasser Road
P.O. Box 30819
LUSAKA, ZAMBIA
Fax: + 260 211 225270
Tel: + 260 211 222858, 220177
e-mail: ndumingu@zda.org.zm

Zambia International Trade Fair
P.O. Box 71058
Ndola
Zambia
Fax: + 260 212 651704
Tel: + 260 2 651514/16
e-mail: zitf2000@coppernet.zm

1 Introduction

Mukuba Hotel was opened in 1978 by Zambia Industrial and Commercial Show Society Limited (ZICSSL) trading as Zambia International Trade Fair (ZITF) with a 76% shareholding and Zambia Industrial and Mining Corporation (ZIMCO) with a 24% shareholding. The hotel is a limited liability company.
Following the liquidation of ZIMCO in 1995, the 24% shareholding is held directly by the Ministry of Finance and National Planning on behalf of the Government of the Republic of Zambia (GRZ).

ZITF is looking at recapitalising and/or redeveloping the Mukuba Hotel to be followed with an internationally renowned branding in order to enhance the Hotel’s position in the hotel industry in Zambia and give it an international prominence.

Expressions of interest are being invited from potential investors, who wish to meet the aspirations of ZITF.

This information flier provides an overview of Mukuba Hotel Limited.

2. Profile of Mukuba Hotel Limited

Mukuba Hotel Limited is situated on plot number 2735/ rem 2735A in the show grounds of Ndola, on the Copperbelt Province. The hotel is situated on a 16 hectare piece of land. The title is in the name of the ZICSSL trading as ZITF. Subdivision of the land on which the hotel is located is in progress. The Hotel is about 4km from Ndola International Airport.

The Mukuba Hotel is the third biggest Hotel on the Copperbelt. The market is made up of local and foreign business people, tourists and travellers. The Hotel has a three star rating. It has a strong position on the market due to its high standards among its competitors. The hotel is located in the fringes of the City of Ndola and within reach of some tourism sites which include the world’s second largest open-pit copper mines at KCM‘s Nchanga Division. Other sites are Ndola Museum, the Slave Tree, Monkey Fountain Zoo, Dag Hammarskjoeld Memorial Site, the Chimfunshi Orphanage for Chimpanzees and of course the Zambia International Trade Fair grounds, Ndola Golf Club and Ndola International Airport.

The hotel also boasts of a nine-hole mini-golf course.

The hotel has beautiful gardens and its herd of graceful impala, among other attractions symbolises the hotels unsurpassed quest for excellence which has earned it the title "Gem of the Copperbelt" amongst the local admirers. The hotel building and other ancillary buildings are in a good state of repair. The grounds are well kept and attractive.

With the anticipated growth that will emerge from the copper mines on the Copperbelt and North Western Provinces, and the resultant growth in the Copperbelt based business enterprises, it is expected that the number of business travellers into the Copperbelt will increase and therefore an expected increase in demand for Hotel accommodation. The Mukuba Hotel is strategically placed to grasp a large share of the market as it offers highly adaptive accommodation facilities ranging from single rooms to executive suites. It is centrally located within the easy reach of all major business and tourism centres.

2.1 Buildings

The main Hotel building has 2 floors and a separate administration building. The Hotel has its own boreholes to supply fresh water round the clock. Sanitation for all the buildings is in a good and serviceable condition.

2.2 Banqueting and recreation facilities

The hotel's restaurant with a capacity of 120 dinners provides a selection of international a`la carte and buffet. It can accommodate about 250 people for cocktails. The boardroom on the first floor is equipped with a television and video, slide projector and screen and seats up to 60 people. The gardens also provide first class venues for outdoor functions like weddings, private parties and banquets. The courtyard also provides a unique outdoor facility for light meals.

The hotel has a coffee shop and two bars. One of the bars is equipped with a Cold room.

2.3 Accommodation Facilities

The Hotel has 52 ensuite bedrooms, comprising 31 twin rooms, 1 executive twin, 7 standard doubles, 7 executive doubles, 2 luxury suites and 1 deluxe suite. There is also a one bed roomed flat and a two bed roomed flat with self catering facilities.

All the rooms are complimented with fridge, trouser press, tea/coffee making facilities, hair drier, bedroom and bathroom phone extensions, Digital satellite Television channels, and an in-house 8 hour video channel and piped music.

2.4 Other Facilities

Other facilities include a gift shop and a Copperbelt museum courtesy desk for curios and other artifacts. The Hotel has a car park for up to 200 vehicles. Back of the house facilities include offices for accounting and Human resources departments, and change rooms for workers. The hotel has an orchard for oranges. The General Manager's residence, a three bed roomed house with a study is within the hotel premises.