IFC backs Marifala to boost local furniture manufacturing in Guinea
The $13m funding will help Marifala construct a modern industrial complex to consolidate and expand its operations.
** For the best experience, download the free Africa Private Equity News app Android | iOS **
The International Finance Corporation (IFC) has announced a financing package for Marifala, a producer of modern furniture in Guinea.
IFC will provide a loan of up to $13 million to help Marifala construct a modern industrial complex to consolidate and expand its operations, which are currently scattered across Guinea's capital city of Conakry. IFC's support will enable Marifala to increase its efficiency and triple its production capacity, helping the company transition to mass production of lower-cost, quality furniture produced domestically. IFC's investment is supported by a subordinated concessional loan of up to €6 million (US$6.5 million) from the International Development Association Private Sector Window (IDA PSW) Blended Finance Facility.
The funding will also help Marifala build four new retail stores, three in Conakry and one in Bamako, Mali.
IFC's investment is the first under the Local Champions Initiative, a programme designed to provide advisory and financing support to leading companies in the manufacturing, agribusiness and services sectors which have the potential to expand their impact, scale, and operations at the regional or global level.
"Supporting the sustainable growth of local champions like Marifala is key to helping Guinea diversify its economy and boost the local manufacturing sector," said Yosuke Kotsuji, IFC's manager for agribusiness for Africa. "IFC is proud to help Marifala reach the next level of growth, create more jobs, and make a difference in the furniture sector in Guinea and beyond."
"With financial support from IFC, we are poised to strengthen our production capacity, improve our facilities, and invest in new technologies to produce high-quality modern furniture. In addition to stimulating local furniture manufacturing in Guinea, this funding will positively impact employment by creating new opportunities for local workers. We are hiring and training more qualified personnel, which helps build the skills and capabilities of the Guinean workforce," said Marifala's CEO, Abdoulaye Diallo.
The furniture market in Guinea is booming, backed by a growing urban population and a burgeoning real estate sector. However, 75% of the current market comprises imports, which often have long lead times and high transport costs. Ramping up local production will create hundreds of jobs along the value chain and, at the same time, give Guinean consumers wider access to affordable, high-quality products with shorter delivery times.
In addition to its financial support, IFC will provide upstream advisory services to help Marifala assess the feasibility of developing its own forest concession operations and improve its financial management practices.
Stay ahead in Africa's private equity and venture capital sector with Africa Private Equity News’ monthly Dealmaker’s Log.