RAYONI INTERNATIONAL CONVENTION CENTER (RICC)Project description
The project seeks to develop an international convention centre in Mzuzu city, Northern Malawi. The project promoter Rayoni Holdings Limited (RAHOL), is Malawian investment company with the aim of investing in viable businesses in northern and entire Malawi. Rayoni International Convention Centre Limited (RICC) is a fully registered Special Purpose Vehicle (SPV) to facilitate investment into the project. RICC is currently wholly owned by Rayoni Holdings Limited. Rayoni Holdings Limited is seeking partners/investors in RICC.
Rayoni is unlocking Malawi’s premier tourism through the following innovative investments.
Rayoni Hotel: a 200-key 4-star hotel constructed in two phases.
Rayoni Conference Centre comprising of conference halls, amphitheater and Banquet halls
10,000 square metres Rayoni shopping mall comprising of tens of purpose made stores to be located to local businesswomen to sell local produce and souvenirs for tourists take home
Rayoni Clean Energy Company for production of bio gas from Mzuzu City waste for backup energy for the convention centre.
Rayoni Tourists Airline: The company has been given an airline operating license. This airline will be moving tourists to various tour sites in Northern Malawi, Zanzibar and Kilimanjaro (Tanzania). Currently the company is chartering planes. The company is currently working on long term leases of planes for regional and local movement of tourists.
Rayoni Tourism Centre: An agreement was signed with Ethiopian Airlines Group where ET markets Rayoni Tour packages and also carries the tourists to Malawi. In this partnership Rayoni Air moves tourists and provides all logistics for the tourists recruited by ET to various tour sites.
The initial phase of this transformative project is the convention centre and hotel and has a comprehensive feasibility study report. The subsequent development phases will feature the Rayoni Shopping Mall and a world-class golf course, positioning the Rayoni complex as a complete lifestyle and tourism destination. 2.9 hectares Land for the convention centre has already been acquired and owned by RICC. 32 hectares of Land adjacent to the convention centre has been allocated by government for the construction of the shopping mall and golf course. Tourists coming to the RICC from regional and international destinations will also enjoy the special prices on their tickets through Ethiopian Airlines group. In addition, ET will also provide cargo services to tourists after they purchase take home products at the Rayoni shopping mall.
In particular, RICC will offer facilities for Meetings, Incentives, Conferences and Exhibitions (MICE), and will comprise of six tourism components:
Eco-tourism: Rayoni Tourism Centre which currently creates tour packages for international tourists involving Lake Tourism, Game Parks Tourism and mountain and rivers tourism.
Cultural-tourism: This involves traditional/cultural dances and performances from all over Malawi and African region and also culinary tourism featuring unique northern Malawi food recipes
Conferencing-tourism: Rayoni Conferencing Centre will create and attract national, regional and international short duration courses, seminars, conferences, trainings etc. bringing in people from all over the world to RICC. Discussions have been held with local, regional and international Events management companies for listing of RICC as a venue.
Exhibitions-tourism: Rayoni Exhibitions Centre will create thematic exhibitions involving different product themes. For example, Coffee week would bring in companies that produce coffee and associated industries.
Golfing tourism: The company has been allocated 30 hectares of land by government on which it will construct an 18-hole golf course attached to the Hotel and Convention centre. Local and international tourists attending the conferences will be able to be entertained at the golf course, Lake Malawi excursions, Nyika and/or Vwaza game viewing and mountain trekking
Management of the convention centre:
RICC has received letters of intent from international hotel brands such as Sheraton by Marriott (franchise offer), Radisson Hotels Group for management of the facility. In addition, RICC has reached out to European hotel brands such as Accor, IHG Hotels & Resorts for the management of the facility. Final decision on which brand to work with will be made by the investors who finally take the investments in RICC.
Financial Requirements
Total project costs are estimated at EUR19.9 Million (US$22 million) for first phase of convention centre.
Financial feasibility
Net Present Value: EUR30 Million (US$ 32.1 million)
Internal Rate of Return: 14%
Payback Period: 13 years
Proposed investment model
Assumptions regarding debt-to-equity ratio have been made at 60% debt and 40% equity for CAPEX estimation purposes. Furthermore, three operating models have been proposed for consideration by investors, (1) Management Contract Model; (2) Leasing Model; (3) Own management Model. The composition of the Special Purpose Vehicle (SPV) will be finalised in accordance with interests shown by investors that sign in. Each model has distinct implications for overall project viability. These models may be refined subject to input from investors that eventually buy into RICC.
Contact:
Chief Executive Officer
Dr Anthony J. Mukumbwa, amukumbwa@rayonitourismcentre.com
+265993951720/888510831
Website: www.rayonitourismcentre.com
