IFC has announced a partnership with Kenyan apparel manufacturer Royal Apparel EPZ Limited to support the company’s expansion strategy, which includes constructing a new factory built to high environmental standards while creating thousands of new jobs, with a focus on women
IFC will loan Royal Apparel EPZ Limited $15million, with $10million 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.
The investment is the first to benefit globally from the GROW gender fund. IFC’s investment in Royal was supported by early-stage project development that included an analysis of the supporting textiles value chain and markets in Africa. Royal is a leading manufacturing company known for high-quality apparel and commitment to sustainable practices.
IFC’s financing package is for Royal Apparel EPZ Limited and its associated companies, Royal Garment EPZ Limited and Royal Clothing EPZ Limited, together Royal Apparel Group (Royal).
“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. “Our mission is to empower marginalized communities by providing jobs that promote sustainable livelihoods, eradicate poverty, and elevate living standards.”
“This partnership reflects IFC’s support for sustainable manufacturing and industrialization 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.”
Royal’s new factory will be EDGE-certified, featuring energy-efficient machinery, and renewable power sources. EDGE, developed by IFC, is a certification tool that recognizes buildings designed to reduce energy and water consumption while incorporating sustainable building materials.
Royal is an export-focused apparel producer, supplying major brands in the United States of America and other markets. As part of the financing, Royal will adopt advanced production approaches, including automation, to increase competitiveness. The project demonstrates IFC’s continued commitment towards the industrialization of Africa.
