IFC loans $15 million to expand environmentally friendly factory and create 3,700 jobs, focusing on women.
The International Finance Corporation (IFC) is partnering with Royal Apparel EPZ Limited in Kenya to expand its operations. The partnership aims to build a new environmentally friendly factory and create 3,700 jobs, with a focus on women.
Royal Apparel EPZ will receive a $15 million loan from IFC. Of this amount, $10 million comes directly from IFC, while $5 million is from the Canada-IFC GROW fund. This marks the first global investment under the GROW gender fund.
The funding will help Royal Apparel build a factory near Nairobi. The facility will meet high environmental standards and boost job opportunities. Royal Apparel is a leading Kenyan company known for its quality clothing and sustainable practices.
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Promoting Sustainability and Empowering Communities
Royal Apparel’s new factory will be EDGE-certified. It will use energy-efficient machines, renewable energy, and sustainable materials. EDGE is an IFC tool that recognizes eco-friendly building designs.
The company is also introducing advanced production methods, including automation, to stay competitive. Royal exports apparel to major brands in the U.S. and other markets.
“Partnering with IFC enables us to leverage their extensive experience and resources to achieve our growth objectives,” 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.”
Mary Porter Peschka, IFC’s Regional Director for Eastern Africa, said, “This partnership reflects IFC’s support for sustainable manufacturing and industrialization in Africa that creates jobs and grows markets.”
A Commitment to African Industrialization
IFC’s early-stage project development supported this investment. It included analyzing Africa’s textiles value chain and market opportunities.
Royal Apparel’s factory expansion demonstrates the potential of sustainable industrial growth in Africa. The project will boost local production, exports, and economic development in Kenya.