Opportunities in West Africa’s hospitality sector

West Africa's hospitality sector is experiencing rapid growth, with the founder and CEO of Azalei Hotel's Group, Mossadeck Bally, highlighting the need for governments to create an enabling environment for businesses to thrive. Bally emphasized the positive impact of economic growth on the industry, particularly citing the example of Ivory Coast where the economy has seen significant expansion, leading to the emergence of new hotels from both local and international brands. He noted that the influx of foreign direct investment into West Africa has fueled the need for accommodation options, thus benefiting the hospitality sector. Despite initial skepticism towards investing in the industry, there is now a growing interest from various stakeholders, including international brands, regional chains, local players like Azalei Hotels, and independent investors. The surge in intra-Africa travel has also contributed to the sector's growth, with a notable increase in West African travelers patronizing hotels within the region. While the business segment of the hospitality industry is thriving, Bally pointed out that the leisure segment is still nascent, especially in West Africa. He underscored the importance of government support in advancing the sector, highlighting key challenges such as accessibility to land, skill development, and high borrowing costs. Bally commended countries like Rwanda for their efforts in promoting tourism and advised West African governments to facilitate a conducive environment for hotel developers. Bally further discussed the pivotal role of Development Finance Institutions (DFIs) in supporting hotel projects. He shared his experience of collaborating with DFIs over the past 25 years, citing how financial assistance from institutions like IFC and ProParco has been instrumental in driving investment in the hospitality sector. Bally emphasized the critical role of DFIs in providing long-term, capital-intensive funding that commercial banks may not be able to offer, thereby attracting more investments into the industry. The interview shed light on the untapped potential of West Africa's hospitality sector and the collaborative efforts needed to unlock its growth prospects.