Umodzi Park, a subsidiary of Umodzi Holding Limited, has unveiled an ambitious expansion plan which will see the State-owned enterprise (SoE) constructing additional six villas and two lakeshore resorts.
The firm’s chief executive officer Steve Lwanda said in an interview on Wednesday that the lakeshore resort project is long-term, requiring financing from government, the shareholder.
But he said the villas project will start in the second half of this year and is projected to cost K12 billion in Lilongwe.
Said Lwanda: “We expect to use our funds and financing from commercial banks. We can start our expansion strategy by constructing six villas that will add to the existing 14 villas.
“We expect the project to take the maximum of two years at a cost ranging from K10 billion to K12 billion.”
On the lakeshore resorts project, he said land has already been identified in Salima and Mangochi through the Ministry of Tourism, but it is long-term because they will need to consult government on financing aspects, among others.
Umodzi Park, which manages President Hotel, 14 presidential villas, Bingu International Convention Centre and Malawi Square in Lilongwe, wants to expand following strong performances registered since 2021/22 fiscal year.
Ministry of Finance and Economic Affairs deputy director of public finance Edwin Visabwe said Umodzi Park’s growth symbolises prudent corporate governance, hard work and a commitment to national development.
He said: “Umodzi Park has demonstrated that this expectation can be met and exceeded. It is through such contributions that we can lessen our reliance on borrowing and external aid.
“Other State-owned enterprises need to emulate the route taken by Umodzi Park, which has demonstrated that State-owned entities can thrive and be competitive on the market.”
Umodzi Park’s expansion ambitions come at a time other industry players such as Malawi Stock Exchange-listed Sunbird Tourism plc and Blantyre Hotels plc have intensified expansion projects, which include increasing the capacity of a number of units to improve space for conference, accommodation and other facilities.
Malawi Institute of Tourism head of travels and tourism department Dennis Magodi said in an interview yesterday that the expansion activities by hospitality players highlights the gains the sector is realising post-Covid-19 pandemic.
He said: “The recovery is significant as you can see the progress of these expansion projects undertaken by key players. This is good because it ensures the expansion of the sector towards pre-pandemic levels.”
On the other hand, Malawi Tourism Council executive director Memory Momba Kanthuzi said despite the gains, the tourism sector’s recovery has not been uniform across all tourism-related businesses as small-scale businesses continue to struggle.
“While major hospitality establishments, airlines and tour operators have rebounded well, many small and medium enterprises who form the backbone of the sector, are still struggling with financial constraints, low capacity utilization, and operational challenges,” she said.
On Tuesday, the firm presented a second interim dividend of K200 million to the Ministry of Finance and Economic Affairs for the 2024/25 fiscal year.
Umodzi Park, which was established in 2012 but started operations in 2015, was posting losse and its turnaround was in the 2021/2022 fiscal year when it posted K413 million profit. In 2022/23, it posted K1.3 billion profit which went up to K1.9 billion in 2023/24 fiscal year. In the 2024/25 fiscal year, Umodzi Park projects to post K3.9 billion profit.
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