Our investment will foster an enabling environment for business and economic activity by supporting the construction operation of business hospitality in West Africa
Investment will boost new job creation and support local economies reflecting the fundamental premise of CDC’s purpose to make a lasting difference to people’s lives
CDC is investing in Teyliom Hospitality under its own brand ‘Mangalis’ to help build five business hotels and complete a further three currently under construction in Niger, Benin, Côte d’Ivoire and Senegal. These countries are in the bottom quartile globally for GDP per capita, therefore attracting foreign direct investment is key to helping these countries prosper. Building business hospitality with safe and secure areas creates an enabling environment to attract national and regional corporates who can utilise these areas to host employees and meetings. Economic development will also be supported through hotel spend, increasing revenue flows to local suppliers and contributing to local taxes.
Our capital will also fund large-scale employment of over 1,000 new jobs through the hotels’ operations and many more in construction. Half these roles we expect to be held by women. Hotels provide a safe and flexible working environment for women, mobilising a large part of a country’s workforce. The hospitality sector promotes upskilling employees with training and education; we see this as a key component to improving people’s lives.
We have committed €27.5 million mezzanine debt investment in Teyliom Hospitality. This is part of a €45 million fundraise alongside DEG, Germany’s development finance institution, and SFC, the AfricInvest Private Credit vehicle. Teyliom Hospitality was founded in 2009 and currently operates across West Africa. Teyliom was advised by Mauritius Commercial Bank.
CDC Group’s CEO, Nick O’Donohoe said:
“CDC invests in businesses that will help strengthen their local economy and improve people’s lives. The operation of every hotel supports local supply chains, as every hotel needs fresh food, clean laundry and a whole host of other services.
This investment builds resilience across the economic spectrum. From creating 1,000 new jobs for local people, upskilling the workforce and mobilising the participation of women to contributing to local taxes, all in some of the world’s most challenges countries.
This investment reiterates our commitment to Africa, with $4.5 billion to invest over the four years, we are excited to partner with Teyliom’s prestigious management to support responsible and sustainable growth.”
Yigo Thiam, Chief Executive Officer of Teyliom International Ltd, commented:
“We are delighted to partner with CDC, DEG and SFC. A milestone both for the development of our business hotels and also the partnership with these key investors. This capital will accelerate the development of our new hotels. We are building one of Africa’s most thriving businesses, entering new markets that present huge opportunity to strengthen the local economy and build a business infrastructure.
We would like to thank our partners for their trust in Teyliom and for believing in our projects and the impact we will bring to our local economies”
Media Contact:
Clare Murray, CDC Group, +44 207 036 4353 cmurray@bii.co.uk
Notes to Editors:
1. CDC Group plc is the UK’s development finance institution, wholly owned by the UK Government, CDC has invested in Africa and Asia for 70 years. By investing for impact, CDC aims to help countries in Africa and South Asia to build thriving communities that provide sustainable opportunities for all citizens.
2. CDC takes a flexible approach and provides capital in all its forms, including equity, debt, mezzanine and guarantees, to meet businesses’ needs and achieve development impact. CDC has net assets of £5.1bn. Find out more at www.cdcgroup.com
3. World Bank GDP per capita ranking:
‒ Côte d’Ivoire $1538 [155th in the world]
‒ Niger $378 [192nd in the world]
‒ Benin $827 [171st in the world]
‒ Senegal $1329 [162nd in the world]
