IFC, CDC to invest 35 mln USD to support Kenya's warehousing development
The International Finance Corporation (IFC), a member of the World Bank Group, and CDC Group, the UK's development finance institution, will invest up to 35 million U.S dollars in Africa Logistics Properties Holding (ALP).
ALP is a developer and manager of modern, grade-A warehousing. The financing is expected to fill the gap in logistics infrastructure in the region.
The investment -- 10 million U. S dollars from IFC and 25 million U.S dollars 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 product security.
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 percent 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 U.S dollars. 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 U.S dollars, 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.