Nairobi, Kenya, June 24, 2010—IFC,
a member of the World Bank Group, announced today that it will invest in
and provide advisory services to Spencon International to help the Kenya-based
engineering, procurement, and construction company expand its commercial
and public infrastructure projects across Eastern and Southern Africa.
IFC is loaning Spencon $12 million, which the company will use for working
capital and to fund infrastructure projects of its subsidiaries operating
in Kenya, Tanzania, Uganda, and Zambia. Spencon, one of East Africa’s
largest construction companies, will also explore opportunities in new
IFC’s investment in Spencon will be its first in a construction company
in Africa. In addition to providing affordable, long-term financing to
support the company’s expansion, IFC will advise the company on improving
its quality of work, and raising its environmental, social, and health
JC Patel, Chairman at Spencon, said, “Working with IFC will provide Spencon
with access to the long-term financing tailored to the needs of our business,
allowing us to undertake new projects and sustain our pace of growth. Spencon
is pleased to partner with IFC to help meet the increasing demand for infrastructure-related
construction in Eastern and Southern Africa.”
Jean Philippe Prosper, IFC Director for Eastern and Southern Africa, said,
"IFC supports the development of infrastructure, a significant need
in Africa. IFC’s partnership with Spencon is part of our strategy to work
with local engineering, procurement and construction companies that contribute
significantly to building infrastructure in the region."
Africa suffers from an acute shortage of infrastructure, hampering the
region’s economic growth and its global competitiveness. Despite strong
demand, many construction companies cannot bid for infrastructure projects
because they lack adequate financing and working capital, preventing them
from acquiring raw materials and purchasing equipment.
Alex-Handrah Aimé, a Spencon board member and Director of Emerging Capital
Partners, Spencon’s sole institutional investor, said, “IFC’s loan is
a financial milestone in Spencon’s plans for long-term growth. It builds
on efforts Emerging Capital Partners has undertaken since our initial 2006
investment in Spencon to strengthen the company’s balance sheet, improve
corporate governance and win the confidence of international financial
institutions like the IFC.”
IFC, a member of the World Bank Group creates opportunity for people to
escape poverty and improve their lives. We foster sustainable economic
growth in developing countries by supporting private sector development,
mobilizing private capital, and providing advisory and risk mitigation
services to businesses and governments. Our new investments totaled $14.4
billion in fiscal 2009, helping channel capital into developing countries
during the financial crisis. For more information, visit www.ifc.org.
About Emerging Capital Partners
Emerging Capital Partners (ECP) is the first private equity firm to raise
more than $1.6 billion to invest in companies across the African continent.
The ECP team has a ten-year track record of pan-African investing. The
firm's investment strategy is focused on delivering consistently above-market
returns to investors that are uncorrelated to the U.S. and other global
economies. For more information, please see www.ecpinvestments.com.