Rezidor SAS Hospitality has agreed a 35m euro (£23m, US$42m) joint venture with four Nordic Government Funds to finance its expansion in Africa.

The deal will see IFU of Denmark, Finnfund of Finland, Norfund of Norway and Swedfund of Sweden provide development funding for Rezidor to increase its presence in Africa, largely through its Radisson SAS and Park Inn brands.

The company aims to have 50 hotels on the continent within the next five years.

Rezidor currently operates two properties in Cape Town and has sites due to open in Lagos and Djerba in 2006. Projects are planned for Zimbabwe, South Africa, Botswana, Zambia, Malawi, Kenya, Nigeria, Ghana, Senegal, Morocco and the Democratic Republic of Congo.

Kurt Ritter, president and CEO of Rezidor, said: “Africa is fast becoming recognised as a key area of growth in the leisure and business travel sectors. The positioning of our hotels in these areas will enhance our reputation as the leading hotel chain in pre-empting and responding to the needs of today’s traveller.”

Per Emil Lindøe, managing director of Norfund, said: “This joint venture is in line with our objective to create viable and profitable private enterprises in developing countries with focus on the least developed and low-income countries.”

IFU’s managing director, Sven Riskaer added: “Enhanced growth and development in Africa is a priority and the creation of a strong infrastructure, including well-functioning hotels, is of paramount importance.”|

Rezidor already has a Russian joint venture agreement with IFU, Swedfund and Finnnfund. Details: www.rezidorsas.com