Kenya’s cement producer confirmed Friday it has received 70 million U.S. dollars from the International Finance Corporation (IFC) to scale up its expansions and develop infrastructure across the country.
The National Cement Company, which is part of the Devki conglomerate and has steel and services industries in Kenya, plans to create 6,000 jobs in Nairobi by expanding its cement factory in Nairobi.
"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," Devki Group chairman Narendra Raval said in a statement.
"We aim to contribute actively to improving infrastructure and housing in Kenya," he added, noting that small businesses that transport the company’s raw materials and provide general services will also benefit.
Cement consumption in Kenya has grown at a rate of 13 percent per year in the last six years.
IFC’s investment will enable the company to multiply its production capacity five-fold to 1.7 million metric tonnes per year.
Under the deal, IFC will provide up to 55 million dollars in debt. In addition, IFC and the IFC African, Latin American, and Caribbean Fund will inject 15 million dollars equity into National Cement and will have a seat on the company’s board.
"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," IFC Director for Eastern and Southern Africa Oumar Seydi said.
He said the World Bank subsidiary 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.
"We would like to send a strong signal of IFC’s confidence in a Kenyan company making a difference in the local economy," he added.
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