Tech

Afreximbank seals $117m agreement to finance Veenocks Tiles Plant in Nigeria

Published

1 month ago

August 16, 2024

African Export-Import Bank (Afreximbank), has announced signing an agreement that will see it financing of the development of Veenocks’ Porcelain Tile Manufacturing Plant located in Sagamu, Ogun State, Nigeria.

According to a press statement by the bank, the tiles plant which is to be operated as an indigenously owned state-of-the-art facility with an annual production capacity of 6.6 million square metres of floor and wall tiles, is expected to bring on stream assets with an estimated investment cost of $117 million.

Executive Vice President of Intra-African Trade and Export Development Bank at Afreximbank, Mrs. Kanayo Awani, who signed the facility agreement on behalf of the financial institution, noted that under the terms of the facility agreement, “the project preparation facility will be deployed during the pre-investment stage towards de-risking the project and rapidly advancing it to bankability.”

“With the early-stage intervention sending a strong signal to the market about Afreximbank’s commitment to the project, Afreximbank will be appointed the Mandated Lead Arranger and will take the lead in syndicating the debt raise, with the ability to incorporate credit enhancements, if needed,” the statement said.

Awani explained further that the facility agreement reflected Afreximbank’s commitment to advancing impactful projects in Nigeria and beyond as well as its dedication to leveraging its diverse product suite to offer end-to-end solutions throughout the project finance value chain.

“The holistic approach reflects the Bank’s comparative advantages in supporting its member countries to implement projects efficiently and effectively and of its support for indigenous African investors establishing state-of-the-art manufacturing facilities.”

Adebisi Abidemi Adebutu, the
Chief Executive Officer of Group President of R28 Holdings, the parent company of Veenocks Tiles, also stated in a statement:

“We are thrilled to welcome Afreximbank as a key partner in Veenocks’ journey towards sustainable growth. Once fully implemented, our state-of-the-art factories will set a new benchmark for world-class facilities in Africa, showcasing our commitment to excellence and innovation.

“This strategic partnership with Afreximbank marks a significant milestone in Veenocks’ expansion plans, enabling the company to leverage the Bank’s expertise and resources to drive growth and development in the region.

“With this collaboration, Veenocks is poised to make a meaningful impact in the industry, fostering economic growth and creating opportunities for communities across Africa.”

Related Topics:Afreximbank Agreement Featured Investment Nigeria Veenocks Tiles

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Tech

Uncap VC earmarks $33m to empower early-stage African SMEs

Published

6 hours ago

September 20, 2024

Isaac Dachen

Kenya’s Venture Capital firm, Uncap, has announced earmarking a whopping $33 million fund aimed at fostering the growth of early-stage small and medium-sized enterprises (SMEs) across Africa.

Uncap CEO, Franziska Reh, who made the announcement on a statement, said the firm will collaborate with key partners to unlock new growth opportunities for African businesses.

She stated that the fund presents a “unique non-dilutive, revenue-based financing model that provides crucial support to early-stage businesses without requiring equity stakes.”

“These partnerships include O-Farms, a circular agriculture program run by Bopinc and funded by the Ikea Foundation, and SAIS, an agritech initiative supported by the German Federal Ministry for Economic Cooperation and Development (BMZ) and implemented by GIZ.

“The fund has garnered support from global institutions, including the Bill & Melinda Gates Foundation and the Bayer Foundation. This backing underscores the potential impact of Uncap’s innovative approach to SME financing in Africa.”

“This initiative by Uncap represents a significant step towards addressing the financing challenges faced by African SMEs. By offering a flexible, non-dilutive funding model, the fund aims to empower entrepreneurs to grow their businesses while retaining control.

“As Africa’s SME sector continues to evolve, innovative financing solutions like Unconventional Capital could play a crucial role in driving economic growth and development across the continent,” Reh added.

Uncap’s track record includes investments in 87 companies across seven sub-Saharan African countries with their portfolio spanning eight sectors, including agriculture, education, food and beverages, media and entertainment.

According to the CEO, to qualify for funding, intending SMEs must be registered limited companies in Kenya, Rwanda, Uganda, or Nigeria and should have at least two years of operational history and a minimum revenue of $89,000 in the past 12 months.

Tech

Egypt’s climate action accelerator Athar graduates 5th cohort of green entrepreneurs

Published

1 day ago

September 19, 2024

Isaac Dachen

Egypt-based climate action accelerator, Athar, has marked the graduation of the fifth cohort of its ‘Climate Action Accelerator Programme’ for green entrepreneurs.

The accelerator programme, which was in conjunction with DFC, a startup that aims to develop solar-powered mobile charging stations for electric vehicles, saw the graduands going home with prices up to EGP150,000 ($3,000), and was funded by the Embassy of Finland in Cairo and Hivos, and in partnership with Creativa Innovation Hubs in Upper Egypt.

Shoaib Elqady, the CEO of Athar Accelerator who spoke at the graduation ceremony, said:

“These founders are not only creating solutions to some of our most pressing environmental challenges but are also laying the groundwork for sustainable economic development in Egypt and the wider region. Their success is a testament to the growing importance of climate action in the startup ecosystem.

“We’ve seen a diversity of startups, ranging from those with high growth potential to small and medium enterprises. It is essential to continue supporting these businesses while recognising their differences as they reach their next milestones.

“Not all startups are suitable for venture capital funding, but we need to introduce new funding models that can cater to their unique needs, ensuring they thrive long-term,” he said.

The fifth edition of the programme ended with a demo day held in Minya, Upper Egypt, where 10 startups from Upper Egypt presented their solutions, addressing vital sectors such as eco-friendly biopesticides, renewable energy, organic fertilisers and sustainable furniture.

The winning startup was DFC, which is developing solar-powered mobile charging stations for electric vehicles, and took home the grand price of $3,000.

Other well-performing participants included Fertical, which is utilising beneficial microbes to produce eco-friendly biopesticides and biofertilisers, and Vermi Valley, which is turning livestock and plant waste into nutrient-rich compost.

In addition to the startup pitches, the event also featured the launch of the “Green Manifesto”, a declaration of principles and dedication to supporting overlooked founders in green sectors across Upper Egypt and other underserved regions.

“The manifesto emphasises the need to empower local entrepreneurs, recognise the diversity of startups, and build sustainable communities that foster long-term growth and innovation,” the Athar CEO said.