NAIROBI (Xinhua) --
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
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
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
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.