Watershed moment for African Sun

SAMANTHA MADE

African Sun Limited (ASL), a publicly traded hospitality group, has embarked on a bold strategic realignment that could reshape Zimbabwe’s tourism sector, announcing plans to divest from two of its flagship properties—Caribbea Bay Resort in Kariba and the Monomotapa Hotel in central Harare.

The proposed sale marks a watershed moment in the group’s history as it shifts its focus towards unlocking shareholder value, streamlining operations, and strengthening its presence in high-performing markets.

The company confirmed that the transaction qualifies as a “Category 1” deal under Victoria Falls Stock Exchange (VFEX) listing rules, necessitating formal shareholder approval at an Extraordinary General Meeting (EGM) to be held soon.

If approved, the transaction will not signify a retreat, but rather a calculated move toward a leaner, future-focused ASL—one better positioned to thrive in an increasingly competitive and evolving travel and tourism environment.

According to Venon Musimbe, ASL’s company secretary and governance executive, talks with potential acquirers are already well advanced. “Shareholders and the investing public are advised that, in keeping with the strategy of unlocking value, negotiations for the disposal of a selection of hospitality assets are still underway,” Musimbe said.

“Pursuant to the above, the company has placed the Monomotapa Hotel as well as the Caribbea Bay Resort on the market for sale.”

He added, “Accordingly, the company would be seeking the approval of its shareholders at an Extraordinary General Meeting to be convened at the appropriate time.”

Musimbe also cautionary investors, urging them to avoid speculation while the transaction remains under negotiation.

“Shareholders and the investing public are advised to continue exercising caution when dealing with the company’s securities until advised of the conclusion of the said ongoing processes,” he said.

The most high-profile of the two properties is arguably Caribbea Bay Resort—a Mediterranean-style lakeside retreat perched along the tranquil shores of Lake Kariba.

With its striking design, leisure-focused amenities, and commanding views of one of Africa’s largest manmade lakes, the resort has long been one of  ASL’s most cherished properties.

Yet despite its beauty and brand power, Caribbea Bay has been facing commercial headwinds.

Industry insiders point to seasonal fluctuations in occupancy, elevated maintenance costs due to its location, and a gradual shift in tourist preferences—all of which have impacted long-term profitability.

“This is more than just a property transaction—it’s a turning point in ASL’s corporate journey,” said a Harare-based tourism analyst, who preferred not to be named.

“Caribbea Bay is a national treasure, but its disposal represents the group’s intent to refocus on assets that deliver stronger returns and align with modern hospitality trends.”

Equally emblematic is the Monomotapa Hotel in Harare.

Located adjacent to Harare Gardens in the city’s central business district, the hotel is renowned for its striking architecture, diplomatic clientele, and centrality in Harare’s urban hospitality landscape.

For many Zimbabweans, “Monos”—as it is colloquially known—has been a constant in the nation’s corporate and political life for decades.

The hotel’s proposed sale had already been signposted in ASL’s 2024 financial statements, which noted that Monomotapa had been earmarked for disposal before June 30, 2025.

The latest update confirms the group remains on track to meet that timeline.

Though parting ways with such historic properties may appear counterintuitive, industry experts say the group is making a calculated pivot that speaks to evolving market dynamics.

“This is not a fire sale—it’s a strategic rebalancing,” the tourism analyst said. “Urban hospitality is evolving quickly. The group is making a deliberate choice to concentrate on properties that meet the expectations of today’s and tomorrow’s travelers.”

ASL will continue to manage Monomotapa and Caribbea Bay until the divestitures are complete.

In the meantime, the group’s portfolio remains substantial, with operations across the country.

These include Holiday Inn Harare, Holiday Inn Mutare, and Hwange Safari Lodge.

In Zimbabwe’s tourism capital of Victoria Falls, ASL operates Elephant Hills Resort and co-manages the luxury Victoria Falls Hotel alongside Meikles Hospitality.

“The strategy isn’t about shrinking the portfolio—it’s about enhancing quality and competitiveness,” said a senior executive close to the company’s leadership, who also requested anonymity.

“This is about building a future-proof ASL that leads the market, not trails behind it.”

The latest move follows a similarly high-profile divestiture in 2024, when ASL offloaded the Great Zimbabwe Hotel and its operations to the Mewame Family Trust for US$4.2m. That deal included US$3.2m for the property and US$1m for the business and associated assets.

The buyer, a family trust already active in the tourism and property sectors, has since been lauded for its plans to rejuvenate the historic site.

At the time, ASL explained that Great Zimbabwe Hotel had become a marginal contributor to the group’s profitability, and that proceeds would be reinvested in more promising properties.

A similar rationale is guiding the current proposed sales.

Analysts believe the group is planning to redeploy capital from aging or non-core assets into modernisation projects, digital upgrades, and potential regional expansion.

“The broader industry is shifting,” said a regional hospitality consultant, Asani Nkomo.

“ASL is aligning itself with a global trend—fewer fixed assets, more flexibility, and greater focus on experiences, branding, and efficiency.”

Moreover, the legal structure of the proposed transaction signals transparency and a high standard of corporate governance. Under stock exchange rules, a Category 1 transaction is triggered when a deal exceeds 30% of the company’s asset base, thereby requiring shareholder approval.

“It’s encouraging to see ASL go the proper route of shareholder engagement,” said a capital markets analyst, Rushford Sibanda. “Transparency and governance in corporate transactions build confidence in both the company and the wider market.”

Public reaction to the announcement has been mixed, with some lamenting the potential loss of legacy institutions and others welcoming the fresh strategic direction.

“There’s no denying the nostalgia,” said a fund manager whose firm holds shares in tourism.

“But from a business standpoint, ASL is making a strategic recalibration. They’re choosing future-ready assets over sentimental legacy holdings—and that’s what shareholders should value.”

If the sale proceeds, analysts say the transition could reinvigorate the assets under new ownership.

Fresh investment, rebranding, and targeted repositioning could give the properties new life—and in turn, provide fresh momentum for Zimbabwe’s tourism economy.

“A hotel is more than bricks and mortar,” the tourism consultant noted. “It’s a living asset. With the right stewardship, both Caribbea Bay and Monomotapa could be rejuvenated, modernised, and brought back to peak performance.

That’s good for tourism, good for employment, and good for Zimbabwe.”

The move also underscores ASL’s ambition to thrive in a post-pandemic travel market where agility, efficiency, and bold decision-making are essential.

As international travel recovers and Zimbabwe’s tourism sector shows renewed promise, the group’s strategic realignment positions it to capitalise on emerging trends and demand patterns.

“This is the evolution of ASL,” said one of the company’s executives, who also preferred not to be named.

“It’s about putting sentiment aside and doing what’s necessary to remain competitive, relevant, and profitable. The market is changing. We are changing with it.”

Ultimately, the decision to sell Caribbea Bay and Monomotapa is emblematic of a company unafraid to redefine itself.

Where others may cling to legacy, ASL is betting on transformation—aligning heritage with hard-nosed business logic.

If shareholders back the move, it could spark a broader shift across Zimbabwe’s tourism and hospitality sector, setting new standards for strategic renewal and operational discipline.

Because in today’s hospitality landscape, legacy might tell a great story, but strategy writes the next chapter.

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