The governments of Rwanda and Libya have resumed talks on the sale of their stakes in the four-star Laico Kigali Umubano Hotel, which they run jointly.

The Rwandan government owns 40 per cent of the hotel while 60 per cent belongs to the Libya Arab Africa Investment Company (Laaico), an investment arm of the Libyan Government, which changed to Libya Africa Investment Portfolio (LAP).

“We are in talks with the Libyans,” said John Rwangombwa, the Finance and Economic Planning Minister, in a text message, without divulging more details about what they discussed and whether the Libyans will pump money into the Kigali City-based hotel or not.

Rwanda Today is informed that the Libyans were in the country on November 17 and held talks with government officials.

It is the first time members of the National Transition Council (NTC) that ousted Col. Muammar Gaddafi have started talks with the Rwandan government to pave the way for a buyer to take over the dilapidated hotel, which needs a facelift if it is to compete in the fast-growing hospitality business in the country.

Rehabilitate hotel
Rwanda government had hoped Laico would turn around the hotel; however, they never implemented the plan.

Under the deal, the Libyans, as the majority shareholders, were to rehabilitate the hotel and increase room capacity from the current 134 to 184. It was hoped that the new investment would add to the hotel room numbers in Rwanda.

The hospitality business, which is the backbone of the tourism industry, is facing a deficit of 6,000 hotel rooms.

Influx of tourists
An influx of tourists has triggered construction of hotels that do not meet international standards. Rwanda has 3,552 hotel rooms, according to available statistics.

“As a government, we want to sell our 40 per cent stake in the hotel. Because the Libyans hold a controlling stake in the hotel, they have to be involved in every stage of the negotiations,” said Dr Daniel Ufitekirez, head of business and government assets at the Rwanda Development Board.

“When the Libyans took over the hotel, they promised to invest $3 million in the facility for refurbishment and expansion, but they failed to do so,” he said.