Old Mutual, pension fund in K43bn hotel project
Old Mutual Investment Group (Omig) has partnered Public Service Pension Trust Fund, a stand-alone contributory pension scheme for public servants, to start constructing a K43 billion five-star hotel in Blantyre.
The Cresta Lifestyle Hotel, situated at Kristwick in the former Mulika Club premises, is expected to be completed in three years.
The project has already created jobs for 170 people, according to the pension fund and Omig, and more jobs will be created as the project progresses.
Speaking on Thursday during the ground-breaking ceremony, the pension fund’s chairperson James Kumwenda said they thought of investing pension funds in the hotel project because it is one of the best long-term investment options that are in line with the government’s agriculture, tourism and mining (ATM) strategy.
Kumwenda said: “The decision to invest in the hospitality industry and specifically this hotel was as a result of a thorough and strategic process.
“The board of trustees identified the hospitality sector as one promising avenue for investment.”
He said the process involved an extensive economic, financial and market analysis, which revealed that the tourism and hospitality industry holds significant potential for growth.
“The sector’s resilience and ability to generate consistent returns made it an attractive investment option,” said Kumwenda.
The pension fund has in excess of K378 billion and half of which is managed by Old Mutual Pension Services Company . The two have in the past partnered in the construction of hostels at Kamuzu University of Health Sciences in Lilongwe where the shareholding is 50:50.
Kumwenda acknowledged the need to ensure that the pension funds, which are the retirement benefits of the current working population, are invested in secure and high-return platforms so that pensioners get their money timely.
He advised their partner to execute the project as planned.
“We are fully aware of the responsibility that comes with managing these funds, and we are committed to ensuring that every investment we make serves the purpose of securing the financial future of our members,” he said.
Omig board director Alfred Majamanda said they have vast experience to oversee the hotel project and that it will be completed within the agreed timeframe.
He said the hotel will bring new experience to Malawians while providing more space for conference rooms, including international conferences.
Said Majamanda: “Our aim is to create a world-class facility that will not only serve the needs of travellers, but also stand as a symbol of our nation’s potential and ambition.
“This hotel will be a place where business meets leisure, where culture meets comfort and where the world will experience the best of what our country has to offer.”
Orbis DMC Limited managing director Innocent Kaliati, whose firm is in the tourism industry, said the project means the hospitality industry in the country is growing.
The Public Service Pension Trust Fund was launched in 2017 with K4 billion funds, which has grown to grow the fund to K378 billion.
Cumulatively, Malawi has in excess of K2.5 trillion pension funds, according to the Reserve Bank of Malawi.
