The Nyumba Ya Akiba Cement project in the Democratic Republic of Congo has signed a loan agreement for US$135 million, which completes the project’s financing. Funding has been granted by the African Development Bank (AfDB), Eksport Kredit Fonden (EKF, as guarantor to AfDB), Emerging Africa Infrastructure Fund (EAIF), Habib Bank Limited (HBL, as lead arranger) and International Finance Corporation (IFC). Financing is subject to completing the remaining conditions precedent while the construction of the project will be starting. The plant will add 1.18 million t to the country’s cement capacity.
Total project costs of US$270 million will be funded by the US$135 million loans. AfDB will contribute two tranches of up to US$30 million each, with one tranche being fully guaranteed by the Danish Export Credit Agency (EKF).
Located in the Songololo, Bas Congo province of the DRC, the Nyumba Cement project has limestone and clay quarries onsite, 250 kilometres from Kinshasa. The Matadi port, located 100 km from the plant, will allow easy access for importing raw materials and for exporting in the regional markets.
The project is sponsored by a 50/50 joint venture between Pakistan’s largest cement producer and exporter, Lucky Cement Limited, and the Groupe Rawji, one of the DRC’s largest conglomerates. These sponsors have demonstrated efficient financial, industrial and marketing skills in the cement market, which will contribute to the sustainability of the Nyumba project.
Nyumba Cement will stimulate a local cement industry currently consisting of only a few small functioning cement plants. It will also ease the country’s dependency on expensive imports that stand at over 50% of total cement consumption.
As a cost competitive import substitution project, Nyumba Cement will enhance the efficiency of the domestic markets, boost infrastructure, create jobs and transfer knowledge to the local workforce and is expected to have a significant demonstration effect to attract direct investments to the DRC.
Adapted from press release by Katherine Guenioui
Read the article online at: https://www.worldcement.com/africa-middle-east/16122014/nyumba-cement-secures-us$135-million-loan-24/