Nairobi, Kenya, March 10, 2017 — IFC,
a member of the World Bank Group, and CDC Group, the UK’s development
finance institution, will invest up to $35 million in Africa Logistics
Properties Holding (ALP), a developer and manager of modern, grade-A warehousing,
filling an important gap in logistics infrastructure in the region.
The investment—$10 million from IFC and $25 million from CDC—will be
used for ALP’s developments in Nairobi, Kenya, the trading hub of East
Africa, where the lack of quality, international-standard warehousing space
has long been a constraint on business growth and economic development.
Quality warehousing improves operational efficiencies by reducing waste
from poor storage, increasing the speed of product delivery and improving
The cost of moving goods in Africa is estimated to be on average two to
three times higher than in developed countries and transport costs can
count for as much as 50-75% of the retail price of goods. By investing
in ALP, both IFC and CDC are supporting Africa’s growing trade, both within
the continent and overseas.
ALP is backed by Maris, a Nairobi-based private investment business focused
on sub-Saharan Africa, which will invest $8 million. IFC and CDC are also
joined in the project by Mbuyu Capital Partners, an Africa-focused, UK-based
asset manager with an investment of up to $5 million, among others. ALP
will be led by founder Toby Selman, an experienced emerging markets warehousing
developer, and a Nairobi-based team with African and international experience.
“IFC and CDC not only bring capital and expertise as experienced investors
in African infrastructure, but are also both committed to helping ALP deliver
modern logistics parks with world-class environmental and social risk management
standards,” said Toby Selman of ALP. ALP warehouses will adhere to IFC
Edge green buildings standards.
Mary-Jean Moyo, IFC Regional Head of Manufacturing, Agribusiness and Services
in sub-Saharan Africa, said, “Introduction of modern warehousing in Kenya
will support growth, employment and trade across a range of industries.
With access to quality logistics, global companies will find it easier
to ramp up businesses in Africa.”
Ilaria Benucci, CDC’s Investment Director, said, “CDC is backing ALP
because we know that logistics is a critical, yet often overlooked, part
of economic development. Investment in agriculture is futile if there is
no supply chain in place to get produce to market. Essential medication
won’t work if it cannot be transported and stored in the right conditions.
Our investment will support a company that’s making trade easier in Kenya
and we hope that it can be the start of an expansion into other African
IFC, a member of the World Bank Group, is the largest global development
institution focused on the private sector in emerging markets. Working
with 2,000 businesses worldwide, we use our six decades of experience to
create opportunity where it’s needed most. In FY16, our long-term investments
in developing countries rose to nearly $19 billion, leveraging our capital,
expertise and influence to help the private sector end extreme poverty
and boost shared prosperity. For more information, visit www.ifc.org.
CDC Group plc is the UK’s development finance institution. Wholly
owned by the UK Government, it invests in sub-Saharan Africa and South
Asia with the aim of supporting economic development and job creation.
CDC provides capital in all its forms, including equity, debt, mezzanine
and guarantees. It has net assets of £3.9 billion. Find out more
ALP, based in Mauritius with operational offices in Nairobi, is a newly
established entity, created to develop and manage modern, investment-grade
warehousing in sub-Saharan Africa.