Press Releases
print

IFC APPROVES FINANCING FOR SEVEN PROJECTS IN SUB-SAHARAN AFRICA


Asimnia Caminis


The International Finance Corporation (IFC) has approved loans and loan guarantees totaling US$3.2 million equivalent for projects in Burkina Faso, Côte d'Ivoire, Ghana, Kenya, Tanzania, and Zambia.

All of the approved loans and guarantees will be made by IFC's Africa Enterprise Fund (AEF), which finances projects with costs between US$250,000 and US$5 million. IFC, a member of the World Bank Group, is the largest multilateral source of financing for private sector projects in developing countries.


AEF to Provide Loan Guarantee for New Factory in Burkina Faso
An AEF loan guarantee of CFAF 323 million (US$577,000 equivalent) has been approved for the construction of a vinegar-producing plant in Burkina Faso by Société africaine pour le Commerce et l'Industrie (SAPCI).


The shareholders in the new company are SADA S.A., a company from Mali that was West Africa's first vinegar producer, and Barro S.A., Burkina Faso's main vinegar importer. SADA S.A. has been exporting vinegar from Mali to Burkina Faso and is now planning to produce locally.


The cost of constructing the plant, which will have a production capacity of 820,000 liters of vinegar per year, is estimated at US$1.7 million equivalent.


AEF's guarantee will cover a loan from Banque Internationale du Burkina Faso.


AEF to Guarantee Loan to Ivorian Ice Cream Producer
An AEF loan guarantee of FF 1.8 million (US$300,000 equivalent) has been approved for Fan Milk-CI, a joint venture that will produce dairy products in Côte d'Ivoire, including frozen yoghurt, ice cream, and ice lollies.


The partners are an Ivorian businessman and Emidan, a Danish ice cream producer already active in a number of West African countries. IFU, the Danish development finance institution, is also taking an equity stake in the new company.


Fan Milk-CI is constructing a factory with annual production capacity of 3.6 million liters at a cost of US$950,000.


AEF's guarantee will cover a local currency loan from Union Africaine, Côte d'Ivoire's largest insurance company.


AEF Loan Approved for Apartment Hotel in Ghana
An AEF loan of US$1 million has been approved for Palm Royal Apartment Hotel Company Limited, a Ghanaian company that is building Accra's first apartment hotel.


The cost of the project is estimated at US$4.1 million. The primary market for the hotel, which will provide business and secretarial services, consists of business people on extended stays in Accra and other clients needing temporary office space.


AEF Loan Approved for Kenyan Garments Manufacturer
An AEF loan of US$300,000 has been approved for Aura Garments Manufacturing Limited, a newly formed company in Kenya that will manufacture under bond woven garments for export to Europe and North America using fabric imported from China, India, and Pakistan.


At an estimated cost of US$790,000, the company is leasing space in Nairobi and purchasing 240 sewing machines. At full operation, the company will employ 460 people and generate substantial foreign exchange earnings for Kenya.


AEF Loan Approved for Horticulture Project in Kenya
An AEF loan of US$286,000 has been approved for Mosi Limited, a farm near Nairobi, Kenya, that is planning to switch from the production of spray carnations to the production of roses for export to Europe.


The estimated cost of converting the 2.3-hectare carnation farm into a 2-hectare rose farm is US$788,000.


The conversion project is being sponsored by a Kenyan woman, who owns 40 percent of Mosi Limited and serves as Managing Director. The remaining shares are held by her husband and a family investment company.


During its first year of operations the farm will produce and export an estimated 2.7 million flower stems. Annual production is expected to increase to 3.4 million stems within three years.


AEF Loan Approved for Lodge in Tanzania
An AEF loan of US$150,000 has been approved for Nomad Safaris Limited, a newly formed company that is building a six-room lodge on the bank of the Rufiji River in the Selous Game Reserve in southern Tanzania. Selous is the largest wildlife sanctuary in the world, covering 50,000 square kilometers.


The cost of developing the lodge is estimated at US$350,000.


Nomad Safaris Limited is majority owned by Richard Bonham, a Kenyan national and renowned safari guide and conservationist. The remaining shares are owned by a British investor.


AEF Loan to Help Finance Car Rental Company in Zambia
An AEF loan of US$575,000 has been approved for Big Five Car Hire Company Limited, a family-owned car rental business in Zambia that operates under an Avis franchise, Zambia's first international franchise.


The company, which has been in operation since 1985, will increase its fleet of vehicles over three years to about 42 vehicles, upgrade its facilities, and adapt its practices to conform to Avis' international standards. The cost of the company's transformation into a franchise operator is estimated at US$1.2 million.