The IFC, a member of the World Bank Group, will provide National Cement Company Ltd, Kenya, with up to US$70 million:
- Up to US$55 million in debt from the IFC.
- Up to US$15 million will be in the form of equity from IFC and the IFC African, Latin American and Caribbean Fund. This will also include a seat on the company’s board.
The funds will help National Cement Company Ltd to expand its operations, increase domestic cement supply and encourage infrastructure development in Africa. In the last six years, cement consumption in Kenya has risen by an annual rate of 13%.
National Cement will use the money from IFC to increase its cement production capacity to 1.7 million tpa – five times its current capacity. The expansion project will generate more than 6000 jobs and aid the smaller local companies that provide services for National Cement, such as those who transport raw materials. IFC will also work with the Kenyan cement manufacturer to enhance production and quality standards, increase energy efficiency and health and safety, as well as local outreach initiatives.
National Cement is part of the Devki Group, which also operates in the country’s steel and services industries. Commenting on the agreement, Narendra Raval, Chairman of the Devki Group, stated: “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.”
“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,” added Oumar Seydi, IFC Director for Eastern and Southern Africa.
Adapted from press release by Louise Fordham
Read the article online at: https://www.worldcement.com/africa-middle-east/24072014/ifc-to-provide-funds-to-national-cement-company-kenya-165/