Nairobi, July 23, 2014—IFC, a member
of the World Bank Group, is providing up to $70 million to Kenya’s National
Cement Company Ltd. to expand the company’s operations, increase the local
supply of cement and promote infrastructure development in Africa.
IFC will provide up to $55 million in debt. In addition, IFC and the IFC
African, Latin American, and Caribbean Fund will inject $15 million equity
into National Cement and will have a seat on the company’s board. The
project marks IFC’s largest investment in building materials globally
in the recent past.
IFC’s investment will enable the company to multiply its production capacity
five-fold to 1.7 million metric tons per year. National Cement plans
to expand its cement factory in Nairobi, creating over 6,000 jobs. Small
businesses that transport the company’s raw materials and provide general
services will also benefit economically.
National Cement is part of the Devki conglomerate, which also has steel
and services industries in Kenya. Founded in 1986 by CEO Narendra
Raval, Devki has grown from modest beginnings into a robust group of industries.
Cement consumption in Kenya has grown at a rate of 13% per year in the
last six years, as the country’s economy grows. National Cement is one
of Kenya’s few local cement producers, offering building materials at
Narendra Raval, Chairman Devki Group, said, “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.”
Oumar Seydi, IFC Director for Eastern and Southern Africa said, “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.”
As the company expands, IFC will work closely with National Cement to improve
quality and production standards in areas such as energy efficiency, health
and safety and engagement with local communities.
IFC, a member of the World Bank Group, is the largest global development
institution focused exclusively on the private sector. Working with private
enterprises in more than 100 countries, we use our capital, expertise,
and influence to help eliminate extreme poverty and promote shared prosperity.
In FY13, our investments climbed to an all-time high of nearly $25 billion,
leveraging the power of the private sector to create jobs and tackle the
world’s most pressing development challenges. For more information, visit
About IFC African, Latin American, and Caribbean Fund
The IFC African, Latin American, and Caribbean (ALAC) Fund is a $1 billion
investment fund managed by the IFC Asset Management Company. The fund invests
along with IFC in equity investments in Sub-Saharan Africa, Latin America,
and the Caribbean. It provides long-term growth capital for private enterprises
in these regions. For more information, please visit www.ifcamc.org.
About National Cement
National Cement Company Limited, a member of the Devki Group Of Companies,
was formed in 2008 to construct and operate a Portland Cement Plant in
the heart of Athi River, about 50 km from Nairobi City the Capital of Kenya.
The Company is committed to providing high quality products and services
in an environmentally friendly manner, achieving the financial objectives
of its shareholders, meeting the needs of customers and employees whilst
adding value to the community.