Kenya: IFC extends financing to manufacturer Royal Apparel
The company is an export-focused apparel producer, supplying major brands in the United States and other markets.
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The International Finance Corporation (IFC) has announced a partnership with Kenyan apparel manufacturer Royal Apparel to support the company’s expansion strategy, which includes constructing a new factory.
The company is an export-focused apparel producer, supplying major brands in the United States and other markets. As part of the financing, Royal will adopt advanced production approaches, including automation, to increase competitiveness.
IFC will loan Royal Apparel $15 million, with $10 million from IFC’s account, and $5 million from the Canada-IFC advancing Gender Equality, Resilience, Opportunity and Inclusion Worldwide Facility (Canada GROW). The funding will support the expansion of a new factory near Nairobi, creating an estimated 3,700 jobs.
“Partnering with IFC enables us to leverage their extensive experience and resources to achieve our growth objectives and produce high-quality apparel, thereby creating sustainable jobs and fostering a thriving local economy,” said Omprakash Shukla, chairman of Royal Apparel.
“This partnership reflects IFC’s support for sustainable manufacturing and industrialisation in Africa that creates jobs and grows markets,” said Mary Porter Peschka, IFC's regional director for Eastern Africa. “Our support for Royal Apparel will help the company achieve its ambitious expansion plans in Kenya, boosting both domestic production and exports.”
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