Jul 29 2014
Washington — a member of the World Bank Group, is providing up to $70 million to Kenya's National Cement Company Ltd. to expand the company's operations, increase the local supply of cement and promote infrastructure development in Africa.
IFC will provide up to $55 million in debt. In addition, IFC and the IFC African, Latin American, and Caribbean Fund will inject $15 million equity into National Cement and will have a seat on the company's board. The project marks IFC's largest investment in building materials globally in the recent past.
IFC's investment will enable the company to multiply its production capacity five-fold to 1.7 million metric tons per year. National Cement plans to expand its cement factory in Nairobi, creating over 6,000 jobs. Small businesses that transport the company's raw materials and provide general services will also benefit economically. National Cement is part of the Devki conglomerate, which also has steel and services industries in Kenya. Founded in 1986 by CEO Narendra Raval, Devki has grown from modest beginnings into a robust group of industries. Cement consumption in Kenya has grown at a rate of 13% per year in the last six years, as the country's economy grows. National Cement is one of Kenya's few local cement producers, offering building materials at competitive prices.
Narendra Raval, Chairman Devki Group, said, "By partnering with IFC, National Cement looks forward to combining our long-standing experience in Kenya's building materials sector with IFC's international expertise in infrastructure and environment management. As National Cement expands, we aim to contribute actively to improving infrastructure and housing in Kenya."
Oumar Seydi, IFC Director for Eastern and Southern Africa said, "Kenya often imports cement at high costs. This investment in National Cement will increase the supply of locally produced cement, providing building blocks for East Africa's infrastructure needs. We would like to send a strong signal of IFC's confidence in a Kenyan company making a difference in the local economy."
As the company expands, IFC will work closely with National Cement to improve quality and production standards in areas such as energy efficiency, health and safety and engagement with local communities.
Source: http://allafrica.com/