Cresta expansion considers Ghanzi District

Andrew Maramwidze BG Correspondent
Tuesday, 21 August 2018
Cresta expansion considers Ghanzi District

Potential mining activities boom anticipated in the Ghanzi district, on the backdrop of the commodities prices’ rise could see Cresta Marakanelo Limited open a hotel in the district soon.

Mokwena Morulane, Cresta Managing Director recently told shareholders that the group is making aggressive moves towards opening a hotel in Ghanzi.

“We are at the tail-end of concluding a lease. The economy of Ghanzi is bound to take off in the coming years,” said Morulane adding that mining and horticulture activities within the district would advance their business.
Plans to open in Ghanzi come as the company continues to scout for opportunities both locally and in the region.

Locally, the most recent venture is the Jwaneng Hotel and Maun Hotel, though they have been bleeding cash for the Group, Morulane sees a silver lining on the horizon.
“For example in Jwaneng Hotel in June, July, we have seen a takeoff, we are confident that a turnaround will happen,” said Morulane highlighting that the mines’ Cut 9 also presents opportunities.

Cut 9 is a project expected to deepen Jwaneng’s 650-metre pit to tap into an ore body that will yield approximately 48 million carats and support the mine to its end of life in 2034.
In Zambia, with a solid presence in Lusaka, the group is looking at other mining towns within the country for prospects.

Morulane said the company has also set eyes on South Africa and Zimbabwe, though uncertainties continue to haunt Harare.
“They are still going through some turbulence but we believe they will stabilise,” said Morulane, who remains confident of both local and regional market despite intense competition in the tourism industry. “We think we can enhance the goodwill of our brand in the eyes of our customers.”

In Botswana, the group has already shed off its market share from 25 percent to 12 percent, as competition heightens and new players enter the market.
“We are quite conscious of the challenges that we face but there are opportunities, potential partners approaching us in Botswana,” said Morulane highlighting 70 percent of the group’s business in Botswana has been coming from government.

“That’s too much of a concentration risk, we want to reduce the concentration risk of government as a major customer,” said Morulane.
Morulane is also reviewing the Group’s rental model from an eight percent escalation to a fixed rental to preserve shareholder value.

“The current model is not sustainable for us, we need to correct that imbalance,” said Morulane. Meanwhile, Morulane said the company will continue to embrace ICT in its operations, as a way to remain a preferred conference and guest facility. One of the company’s latest technology offering is the Cresta App which allows customers to book and process payment through their devices.

Last modified on Tuesday, 21 August 2018 12:30

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