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District Mayor Threatens To Withdraw Land

No loan for Rwanda business group may mean no hotel

Wolfgang H. Thome, eTN ambassador  Feb 18, 2010

The Kabarondo business community, or at least sections of it, had their request for a 600 million Rwanda francs loan turned down, which they had intended to use for the construction of a three-star hotel in that location.

The district mayor subsequently threatened to withdraw the land allocated to the business group if they could not find the resources to go ahead with the construction, which if at all may now only go ahead on a greatly-reduced scale. Not a bad idea finds this correspondent - why not start with fewer rooms and then expand as the occupancies rise and the cash flow proves that the initial investment and loans can be paid back?

The bank, it was learned, had offered a 200 million Rwanda francs loan to start with, partly due to the lack of sufficient securities to guarantee the larger amount, and if cool heads prevail, this project can still go ahead and bring a state-of-the-art hospitality facility to the township.

No loan for Rwanda business group may mean no hotel
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