Government policy inconsistency hits AfSun

The hospitality group recently moved its listing from the Zimbabwe Stock Exchange to the VFEX, partly due to the exchange control exemptions.

 The company also expected the migration to boost its capacity to acquire funds to support ongoing renovations and new projects.

“Unfortunately, our funding plans and initiatives have been negatively affected by the recent monetary policy statement that removed foreign currency liquidation exemptions for companies listed on the VFEX and companies in the tourism sector,” chairman, Emmanuel Fundira, said in the group’s 2022 annual report. He added that this would make it more difficult for the hotelier to access the funding necessary for extensive refurbishment projects.

“We will however, continue to explore other funding opportunities and leverage our strong relationships with investors and financial institutions to secure the necessary resources to drive our business forward.

“We are confident that with our experienced team, strategic partnerships, and commitment to excellence, we will achieve our goals and deliver value to our stakeholders,” he said.

“Our cash deployment strategy remains unchanged, focusing mainly on targeted capital expenditure on hotel assets to enhance the experience of our valued guests and to preserve value.”

Meanwhile, the group expects to spend another US$12 million upgrading its remaining properties across the country after the conclusion of refurbishment works at Victoria Falls Hotel and Troutbeck Resort.

“In this regard, the group has commenced preparatory work to upgrade all our hotels to world-class standards. We estimate spending approximately US$12 million in the next year or two, depending on the business and economic performance, to be funded from our own cash position and borrowings,” Fundira said.

During the third quarter of 2022, AfSun, together with its partner Meikles Limited, completed the refurbishment of 47 rooms and the kitchen at the Victoria Falls Hotel.

According to Fundira, the group invested approximately US$5 million in the refurbishment.

AfSun also completed refurbishing all 70 rooms at Troutbeck Resort during the last quarter of 2022.

In the outlook, the group expects to benefit from various high-profile events, including elections, the Zimbabwe International Trade Fair, the Victoria Falls Carnival and cricket tours in Harare and Bulawayo.

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