President Yoweri Kaguta Museveni has stepped in to prevent the auction of Pearl of Africa hotel, owned by Aya Investments Group.
A South African-based Industrial Development Corporation (IDC) recently announced plans to auction this facility to service a loan that Aya Investments Group had failed to pay.
Mr. Museveni, in his letter dated May 1st, 2024, to the Group, described Pearl of Africa hotel as a strategic investment that was supported by the government through land allocation and other benefits.
He said the government will ensure the debt is paid instead of the hotel being auctioned off.
“I have been approached by Mohammed of Aya Investment (U) Group regarding the sale of his hotel due to indebtedness to Industrial Development Corporation, South Africa,” the letter reads in part.
President Museveni has directed that the auctioneer halt the sale of the hotel, pending a meeting between the government and Aya Investments Ltd.
The President has instructed his principal private secretary to organize the meeting to discuss alternative ways of recovering the loan from Aya Investments rather than selling it.
“I am therefore directing the auctioneer to halt the sale of the hotel pending my meeting with you, and I am directing my principal private secretary to organize the meeting this month,” President Museveni writes.
The Pearl of Africa hotel is considered a vital investment for the country, and the government’s decision to intervene highlights its commitment to protecting strategic assets and supporting local businesses.
