Africa Finance Corporation (AFC) Invests N8 Billion in Kenyan Cement Manufacturer

The Africa Finance Corporation, Nigeria’s leading development financial institution, has invested the sum of $50 Million in Athi River Mining (ARM).

ARM is the second largest cement manufacturer in Kenya by way of production quantity. The company produces 1 million tones of cement in Kenya and is boosting capacity with the establishment of a 1.5 million tons plant in Tanzania.

The company also has interests in sodium silicate, limestone, industrial minerals, fertilizer and special building products.

Andrew Alli speaking on the investment in the Nairobi Stock Exchange (NSE) listed company, stated it was to mark the AFC’s first investment in Kenya.

He added, “We are delighted to be partnering with ARM to expand its business across the East African region.  The Company is a homegrown champion in the region’s cement sector and we are impressed with what the team, led by the Managing Director, Mr Pradeep Paunrana, has accomplished in the last few years.

“AFC is very excited by the growth opportunities in East Africa, and we look forward to expanding our portfolio of investments in Kenya and the region.”

Chairman of ARM, Rick Ashley, said, “We are so pleased to welcome AFC to Kenya and to ARM. We believe this investment together with the cash flows from the Kenya and Tanzania businesses will enable the Group to secure its place in the East African and regional markets over the next five years.

“It will enable us continue delivering the strong growth associated with ARM in future years.  Further we believe the terms clearly demonstrate the value creation that our expansion policy has been designed to deliver.”

AFC is a Development Finance Institution established in 2007 as an African-owned and private sector led financial institution.  AFC seeks to improve African economies by proactively creating, acquiring, financing and managing infrastructure, industrial and financial assets. AFC is as an investor, developer and financier of infrastructure projects and infrastructure related firms across the Continent.