• FCB has secured exchange control approval for the US$30 million disposal of Makasa Sun formerly Kingdom Hotel
  • The cash-settled deal with UAE-based ASB Hospitality underscores a strategic refocus on core banking, even as foreign investors continue to view Zimbabwe’s prime real estate and tourism assets as a safe haven amid economic volatility
  • Proceeds from the disposal will be redeployed into First Capital Bank’s core operations, while the staff pension fund will apply its share toward member obligations and alternative investments

Harare - First Capital Bank Limited has received exchange control approval for the US$30 million disposal of Makasa Sun (Private) Limited (Formerly The Kingdom Hotel) and is now awaiting the remaining regulatory approvals to complete the transaction, according to the latest further cautionary statement.

‘’ The Directors of First Capital Bank Limited wish to advise all shareholders and the investing public that the transaction has now received exchange control approval and is currently awaiting the remaining regulatory approvals,’’ reads the circular.

This follows the signing of a binding share purchase agreement in November 2025 between First Capital Bank, its staff pension fund and United Arab Emirates-based ASB Hospitality, under which the UAE investor agreed to acquire 100% of the issued ordinary and redeemable preference shares in Makasa Sun  owner of the Makasa Sun Hotel.

Under the terms of the agreement, ASB Hospitality will acquire the entire issued share capital of Makasa Sun for a cash consideration of US$30 million. A US$3 million deposit has already been paid into escrow, with the balance of US$27 million payable on completion, subject to the fulfilment or waiver of conditions precedent.

In addition to exchange control approval from the Reserve Bank of Zimbabwe, which has now been secured, the transaction remains subject to competition clearance from the Competition and Tariff Commission and the COMESA Competition and Tariff Tribunal, as well as capital gains withholding tax clearance from the Zimbabwe Revenue Authority.

The effective date of completion will be announced once all outstanding approvals are obtained.

In October 2024, Makasa Sun had a consolidated net asset value of US$27.98 million. First Capital Bank holds a 50% economic interest, valued at approximately US$15 million, with the remaining stake held by the First Capital Bank Staff Pension Fund.

The bank has classified Makasa Sun as a dormant entity and does not consolidate it into its group financial statements.

According to bank the disposal is not expected to have a material impact on earnings, headline earnings per share, net asset value per share or net tangible assets, aside from adjustments related to transaction costs and taxation.

The transaction is classified as a Category 3 transaction under the VFEX Listings Requirements, with the asset representing 11.19% of the bank’s market capitalisation, which stood at approximately US$134 million at the time the initial cautionary statement was issued in September 2025.

While financially modest in earnings terms, the transaction is strategically significant. Proceeds attributable to the bank will be reinvested into its core business, while the staff pension fund will apply its share toward member obligations and alternative investments. The transaction is entirely cash-settled, with no equity or debt instruments received as consideration.

ASB Hospitality is  an international   investment company backed by global hotel operator brands. Its acquisition of Makasa Sun marks another instance of Middle Eastern capital targeting Zimbabwe’s tourism assets, particularly in Victoria Falls, one of Southern Africa’s most resilient leisure destinations.

The  investor intends to reposition the hotel, potentially injecting fresh capital and operational expertise into a property that has historically been a flagship asset but has faced constraints linked to underinvestment and shifting tourism patterns.

Victoria Falls has increasingly attracted project-specific foreign direct investment, especially from Gulf investors seeking exposure to trophy assets in high-traffic tourism corridors.

While First Capital Bank’s exit from Makasa Sun reflects a deliberate push toward balance-sheet efficiency and a tighter focus on core banking, it comes against a broader investor trend in Zimbabwe’s volatile economy, where real estate and property assets continue to be viewed as a safe haven.

Persistent currency instability, inflationary pressures and limited long-term financial instruments have driven corporates, pension funds and high-net-worth investors to hedge capital in tangible assets.

The divergence highlights differing incentives between regulated banks and private investors. For banks, property and hospitality assets are capital-intensive, illiquid and often deliver weaker risk-adjusted returns under prudential rules, making them increasingly non-core.

For private and foreign investors, however, real estate remains one of the few asset classes capable of preserving value in US-dollar terms.

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