A Zimbabwean hotel group said Monday it planned to raise US$25 million to expand across the continent.

African Sun Limited said its shareholders had approved plans to raise the fresh capital, divided into US$10 million equity and US$15 million loan capital.

The hotel group, which operates in countries such as Ghana, Nigeria, South Africa, Botswana and Zambia, is on a major expansion drive in Africa, where it is snapping up businesses.

Only last month, the group announced it had bought Royal Chundu hotel in Zambia for an undisclosed amount.

It also said it wanted to increase its hotel room capacity to over 8,500, from 2,500 currently, and become Africa's largest hospitality group.

At present, African Sun Limited is refurbishing most of its properties, particularly in Zimbabwe and South Africa, in readiness for the 2010 World Cup finals.

By Staff reporter and agencies

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