The government of Zimbabwe has approved a bid by Zambezi Crescent to buy-out Zimparks from the Zambezi Joint Venture, through acquiring its 50% stake.
Speaking to the media, Information Minister Jenfan Muswere said this buy-out plan will result in Zambezi Crescent developing and operating Malachite Camp in Victoria Falls.
‘’Cabinet considered and approved the Buy-out Proposal by Zambezi Crescent to acquire a Zimpark’s 50% stake in the Zambezi Joint Venture to develop and operate Malachite Camp in Victoria Falls.
‘’The proposed buy-out plan will unlock more capital injection by Zambezi Crescent, strengthening its strategic control and improving operational efficiency in the management of the venture.
‘’ On the other hand, the Buy-out Plan will enhance Zimpark’s strategic realignment towards domestic tourism. Additionally, the Plan will remove the budgetary burden from Zimparks which was also facing challenges in meeting its 50% obligation for capital commitment.
‘’Zimparks will also be guaranteed revenue certainty in annual lease fees, while retaining a 100% legal ownership of the land asset,’’ said the minister.
Zimparks and Zambezi Crescent (Pvt) Ltd entered into the joint venture around 2021. The joint venture was meant to significantly improve the performance of the Zambezi Camp Lodges, which are strategically located along the banks of the Zambezi, but had been performing poorly over the years
Zimparks and Zambezi Crescent were supposed to be sharing profits on a 50/50 basis.
