PROJECT

Projects

Environmental & Social Review Summary

Project Number

52379

Company Name

Asmara Holdings Limited

Date ESRS Disclosed

Jul 13, 2026

Country

Zambia

Region

Africa

Last Updated Date

Jul 14, 2026

Environmental Category

B - Limited

Status

Pending Approval

Sector

City and Business Hotel

Industry

Tourism, Retail and Property

Department

Regional Industry - MAS Africa

Project Description

The Asmara Project involves a proposed senior secured IFC financing loan of USD 50 million to support investments by two independently owned operating companies that are part of the broader Asmara Group based in United Arab Emirates (UAE). IFC’s investment is structured as separate loans made directly to each borrower company and is not directed to a holding company or fund structure. Each borrower is solely responsible for the use of proceeds and for compliance with applicable environmental and social (E&S) requirements for its respective project. The first component consists of a Hilton-branded hotel in Lusaka, Zambia (Hilton Hotel), operating under a franchise agreement owned and managed by Zebra Manufacturing Limited (Zebra). The project involves the development of a 211-key business hotel located on Thabo Mbeki Road in the central business district, designed to serve corporate, diplomatic, and leisure guests. Hotel construction is at an advanced stage, approximately 75 percent complete at the time of IFC appraisal, with remaining works focused on final finishing and furniture installation. The proposed IFC loan supports completion of these works and initial operational requirements. The hotel site is located on previously developed urban land held under a long-term state lease, renewable every 99 years. The land was acquired through a formal legal transaction in 2015 and was previously vacant, with no history of formal or informal occupation. No land-related issues, including encumbrances, displacement, or legacy claims, have been identified during due diligence, in the available project documentation and following IFC remote sensing risk screening. In parallel, Zebra is developing a water park adjacent to the hotel. The waterpark is not part of the Hilton franchise and is outside the scope of IFC’s investment. It is developed and operated under a separate management and operational model. The second component is a greenfield logistics project in Djibouti, led by Future Africa International Trading FZE (Future Africa). It includes dry bulk grain silos, bagging facilities, warehouses, and logistics infrastructure in the Damerjog Industrial Park to support regional grain distribution, mainly for the Djibouti-Ethiopia corridor. The land is expected to be leased for 30 years within the Damerjog Industrial Park, a large-scale government-led industrial development area. According to the zone-level Environmental and Social Impact Assessment (ESIA), the Industrial Park area is largely undeveloped and was characterized at the time of the study (2018) by limited infrastructure and low-intensity land use, with surrounding populations living in dispersed semi-rural settlements outside the immediate Industrial Park footprint. The available documentation and the IFC site visit do not indicate the presence of formal or informal occupants within the specific Future Africa site. IFC funding is strictly for these assets, with clear connections to identified E&S risks and relevant mitigation measures under Performance Standards 1-4. Based on available information and findings from the site visit, both project sites were acquired or allocated without physical or economic displacement, and no formal or informal occupants, encumbrances, or legacy land-related issues have been identified. Therefore, Performance Standard 5 (Land Acquisition and Involuntary Resettlement) is not applicable to either projects.

Overview of IFC's Scope of Review

IFC conducted an E&S due diligence between April and May 2026, focusing on the two borrower companies as independent operating entities. While both companies are part of the Asmara Group, IFC’s due diligence did not treat the group as a consolidated borrower. Instead, the review assessed each company’s operations, management capacity, and project-specific E&S risks in line with the direct lending structure. The due diligence included a desk-based review of project documentation and structured discussions with management to understand business activities, land tenure, construction and operational arrangements, and existing E&S management practices. The review covered operations and systems across Ethiopia, Djibouti, Zambia, and Angola, reflecting the geographic footprint relevant to the borrowers’ current activities and management oversight. IFC’s review considered applicable national regulatory requirements and alignment with the World Bank Group Environmental, Health, and Safety (WBGEHS) Guidelines. For the Zambia hotel, IFC reviewed the Lusaka site through site inspections, discussions with project management and construction teams, interviews with workers, and meetings with external stakeholders, including representatives from the hospitality sector and national union organizations. IFC assessed construction-stage E&S risks associated with finishing and fit out works, rather than the main construction phase of the hotel. Construction is currently ongoing and is expected to be completed by December 2026. Given this timeline, IFC’s ability to influence construction-stage E&S performance will depend on the timing of commitment relative to construction completion. However, IFC’s due diligence and E&S requirements focused on strengthening construction close-out and ensuring alignment with IFC Performance Standards prior to operations, including addressing any outstanding EHS issues and enhancing client oversight of contractors. Risks assessed include occupational health and safety and contractor management. IFC also reviewed the Engineering, Procurement and Construction (EPC)contractor’s environmental, health and safety systems, plans, and incident records. While the contractor’s systems are aligned with international standards, IFC identified some gaps in implementation and limited client oversight. The incident register records a limited number of minor incidents and no fatalities. However, it does not allow complete verification of historical construction performance. Based on the information reviewed and site observations, IFC did not identify evidence of major E&S incidents or non-compliance during construction. Given the advanced stage of construction, IFC’s focus is on construction close-out (to the extent construction remains incomplete at the time of commitment) and transition to operations, including labor and working conditions, occupational health and safety, resource efficiency, and community health and safety. As noted above, Zebra’s adjacent waterpark is outside IFC’s financing scope and has not been assessed as part of IFC’s due diligence. For the Djibouti warehousing project, IFC undertook a site visit to the proposed facilities within the Damerjog Industrial Park and engaged with project management and technical teams, including the industrial park operator. The review considered available project information and client inputs, focusing on environmental and social risks typical of bulk commodity storage and logistics operations, including worker safety, traffic management, and environmental controls within an industrial setting. During feasibility studies, construction and project implementation of the Hilton Hotel in Zambia and the Future Africa warehouse and grain silo facilities in Djibouti, IFC will undertake supervision and additional engagements with construction staff and project workers. Any necessary supplementary action plan items identified during supervision will be added to the Environmental and Social Action Plan (ESAP), and the ESRS will be updated accordingly.

E & S Project Categorization and Applicable Standard

Environmental and Social Mitigation Measures

Stakeholder Engagement

Broad Community Support

Environmental & Social Action Plan