- Afreximbank and KCB Group announce tailored financing plans for manufactures, agro-processors, logistics, and value-addition firms planning to set up shop in Vipingo Special Economic Zone.
- From capital facilities, project finance, trade finance, project facilities, guarantees and advisory, lenders offer to ease business operations in new SEZ located at Kenya’s coast.
- Vipingo SEZ is a $3 billion industrial joint project between Centum Investment and Dubai-based Arise Integrated Industrial Platforms (Arise IIP).
Investors planning to establish their enterprises in the upcoming Vipingo Special Economic Zone (VSEZ) in Kenya’s coast have a reason to smile after lenders KCB Group and the African Export Import Bank agreed to rollout tailored financing products to power business activity in the industrial park.
On Wednesday, KCB Group and multilateral lender Afreximbank announced financing of up to $500 million and $300 million, respectively to entities seeking to benefit from a suite of tax, regulation and other incentives by establishing their base in VSEZ.
The lenders said the tailored financing model, which will be covering working capital, project finance, trade finance, project preparation facility, guarantees and advisory, will primarily target investors planning to open manufacturing, agro-processing, logistics, and value-addition businesses in the zone.
VSEZ is an ambitious project in Kenya’s coast. It has been positioned to take advantage of the world famous Port of Mombasa, and Lamu to drive Kenya’s push to enhance its manufacturing ability even as it enhances its participation in intra-African trade through export of finished products.
The $3 billion (KES390 billion) industrial park is a joint undertaking between Centum Investment—a Nairobi Securities Exchange and Uganda Securities Exchange-listed firm—and Dubai-based property investment heavyweight Arise Integrated Industrial Platforms (Arise IIP).
Dubai-based ARISE IIP engine behind Vipingo SEZ
ARISE IIP says that it designs, finances, conceives and operates industrial ecosystems across Africa. “We identify industrial gaps in African countries and design tailor-made solutions to enable the sustainable and local transformation of raw materials, boost exports, and promote trade,” ARISE IIP stated in their website.
“Allow me to commend Arise IIP and their partners for their vision, commitment, and confidence in Kenya. Their partnership with Centum here in Vipingo SEZ, as well as their investment in Dongo Kundu and Naivasha, demonstrates that Kenya is a premier destination for serious, transformative investment,” noted President William Ruto during a ceremony to lay the foundation stone of Vipingo park.
KCB Group and Afreximbank noted that by putting together their expertise, knowledge and networks, they will manage to empower both local and international investors to enjoy tailored financing offering, thereby scaling growth of enterprises in the area.
“This agreement marks a significant step in our mission to catalyse sustainable industrial growth in Kenya and across the region. We are delighted to elevate Vipingo SEZ as a gateway to transforming, creating and sustaining an environment in which export-oriented industries can thrive, by leveraging economies of scale, shared infrastructure and access to global markets,” explained KCB Group CEO, Paul Russo.
Structured to position Kenya competitively as the continent moves to stimulate the African Continental Free Trade Area (AfCFTA) market of 1.4 billion people, Vipingo SEZ is one of nearly 40 industrial parks in East Africa’s largest economy that are modelled to attract export-oriented investments.
Read also: AfCTA Presents Golden Opportunity for Africa to Trade Equally with MNCs
Afreximbank, KCB Group ready tailored financing plans
KCB Group and Afreximbank said that by channeling tailored financing packages into the zone, they will aid Kenya’s trade and investment ecosystem to unlock critical infrastructure, strengthen export-oriented industries, and accelerate Kilifi’s transition into a magnet for both domestic and foreign direct investment.
“Afreximbank’s mandate is to promote and expand African trade, and this partnership with KCB is a concrete demonstration of that commitment. Special Economic Zones are powerful engines for industrialization, export growth, and economic diversification. Through this financing framework, we will not only enable enterprises to scale but also support the creation of sustainable supply chains that uplift local communities and drive regional integration,” explained Ms. Oluranti Doherty, Afreximbank’s Managing Director, Export Development.
During a ceremony to lay the foundation stone of the $3 billion industrial complex that is poised to give rise to over 50,000 jobs, ARISE IIP Founder and CEO Gagan Guptanoted that “Kenya’s strategic location, skilled workforce, and strong policy environment make it an ideal hub for sustainable industrial growth.
He added: “Vipingo SEZ will catalyse new value chains, create jobs, and position Kenya at the heart of African and global trade.”
Attract investors, create lasting impact
“Vipingo Special Economic Zone is designed to be a catalyst for industrial growth, job creation, and value addition in Kenya. By partnering with ARISE IIP, we are combining global expertise with local vision to deliver a competitive platform that will attract investors, create lasting impact, and position Kenya as a leading hub for manufacturing and trade,” said James Mworia, Chaiman of VSEZ and CEO of Centum Investment Company.
Another landmark moment realised during the ceremony was the announcement on an agreement between Arise IIP Kenya and Fortune Planet Industrial Investment and Development Ltd, which seeks to set up an $80 million ethanol plant at Vipingo park.
The manufacturing facility is projected to process 500,000 tonnes of cassava per year, sourced from Kenyan farmers, a value chain that will give rise to new jobs, strengthen rural economies, while advancing green industrialisation.
Other MoUs between Arise IIP Kenya and other enterprises were signed, including those eyeing textiles, agro-processing, pharmaceuticals, renewable energy, and logistics investments.
Read also: Zoned for impact: How a cross-border Special Economic Zone is powering Africa’s green switch
