World Bank-Backed Hotel Projects Drive Jobs and Growth in Sub-Saharan Africa’s Tourism

The World Bank Group, in collaboration with research and financing institutions including the International Finance Corporation (IFC), the Multilateral Investment Guarantee Agency (MIGA), and France’s development finance institution Proparco, has embarked on a transformative journey to reinvigorate Sub-Saharan Africa’s hospitality industry. Their joint intervention, detailed in a recent report, exemplifies how political risk insurance and programmatic development finance can stimulate job creation, enhance infrastructure, and attract foreign investment into regions long plagued by financial caution. With tourism poised to add up to $168 billion in economic value and generate more than 18 million jobs by 2033, the need for bold, secure investment is urgent. Through $225 million in MIGA guarantees, the initiative has already unlocked $450 million in foreign direct investment (FDI) in seven African countries: Cameroon, Senegal, Côte d’Ivoire, Kenya, Namibia, Nigeria, and Rwanda.

The Kasada Model: A Scalable Investment Blueprint

At the heart of this effort lies a groundbreaking master contract signed in 2021 between MIGA and Kasada Hospitality Fund L.P., a Mauritius-based private equity firm specializing in hotel investments across Africa. This contract enabled large-scale, cross-country implementation of hospitality projects through 14 contracts of guarantee. Over a swift three-year period, the partnership yielded 17 hotel developments, accounting for nearly 2,900 new hotel rooms. These investments were protected by MIGA’s political risk insurance, which shields investors against risks such as transfer restrictions, expropriation, war, and civil unrest, with coverage lasting up to 15 years. Alongside MIGA’s backing, IFC and Proparco injected $160 million in loans, demonstrating a well-orchestrated use of blended finance. The result was a model that not only reduced barriers to entry for international investors but also catalyzed infrastructural and economic renewal in key urban centers.

Real Projects, Real Jobs, Real Impact

From the busy commercial streets of Lagos to the burgeoning business districts of Abidjan and Nairobi, the initiative’s tangible impact is being felt across the continent. In Côte d’Ivoire’s capital, Abidjan, MIGA’s guarantees helped fund the greenfield development of a 170-room hotel complex in an underserved neighborhood, a project designed to elevate the area’s profile as a sustainable business and hospitality hub. Meanwhile, in Lagos, Nigeria, the 181-room Movenpick Ikoyi Hotel was acquired and refurbished, ensuring continued employment and improved service standards. In Kenya, a former Crowne Plaza hotel in Nairobi’s Upper Hill district received a green retrofit, supported by $11 million in parallel loans from IFC and Proparco and an additional $27.5 million in MIGA political risk insurance. These examples not only highlight the versatility of the Kasada model across different markets but also underscore the importance of adaptive, locally responsive investment strategies in realizing long-term development goals.

Jobs as the Cornerstone of Development

Job creation stands as the initiative’s most powerful legacy to date. Approximately 1,860 direct jobs have been retained or newly created, with many more likely to arise through secondary effects. According to IFC estimates, each newly built hotel room in Sub-Saharan Africa supports between 1.5 and 3 direct jobs. But the employment effect extends well beyond hotel walls. These projects generate indirect opportunities throughout construction supply chains, local agriculture, transportation services, and retail industries. For many workers, these are not just jobs, but stable livelihoods in communities where employment opportunities are often scarce or informal. The tourism value chain becomes a vibrant economic artery, circulating benefits in all directions, from raw material suppliers to tour operators to local artists. It also lays the foundation for skills development and vocational training, both critical for building a resilient, future-ready workforce.

Toward a More Inclusive and Sustainable Future

The World Bank Group’s unified approach, combining the resources and expertise of MIGA and IFC, has reduced redundancy and enhanced impact. IFC’s environmental and social (E&S) supervision mechanisms were leveraged by MIGA, streamlining compliance and reducing client burden. This kind of institutional collaboration not only strengthens accountability but also enables a cost-effective, efficient deployment of resources. Looking forward, the initiative is setting its sights on gender inclusion as a core metric of success. Kasada has pledged to achieve 50 percent female representation in managerial roles in Côte d’Ivoire and Rwanda. Training and career advancement programs for women in hotel management are being introduced, aiming to break long-standing gender barriers in the industry. This focus on inclusion reflects a growing recognition that sustainable development must be equitable in both opportunity and outcome.

As Managing Partner and Co-CEO of Kasada, David Damiba affirmed, MIGA’s broad and competitively priced guarantee coverage across key African markets provided the confidence needed to execute complex investment transactions. His sentiment captures the essence of the initiative: the right kind of support at the right time can unlock extraordinary opportunities in places that have long been overlooked. The partnership between Kasada, MIGA, IFC, and Proparco provides not only a compelling success story but also a replicable blueprint for de-risking private sector investment and driving meaningful socioeconomic progress. At a time when Africa’s youth population is rising and demand for quality jobs is more pressing than ever, such ventures signal a promising future built on trust, cooperation, and shared prosperity.