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WASHINGTON, D.C., January 5, 1999 --- The International Finance Corporation has approved loans totaling US$3.65 million for four projects in Zambia, Kenya, Namibia and Tanzania. All the projects will be financed through IFC's Africa Enterprise Fund (AEF), which invests in small and medium-sized companies through projects that cost between US$250,000 and US$5 million. IFC, part of the World Bank Group, fosters economic growth in the developing world by financing private sector investments, mobilizing capital in the international financial markets, and providing technical assistance and advice to governments and businesses.
Mining Company in Zambia receives $1 million loan
IFC has approved funding of $1 million to Mpelembe Drilling Company Ltd, a Zambian company which provides underground mining services to Zambia's copper mines. It is also involved in underground and surface diamond drilling, mining related installations work and water well drilling. IFC's investment will go towards the purchase of a total of $2.5 million worth of new equipment to meet an expected increase in demand.
Haulage Company in Kenya receives $1 million loan
IFC has approved a loan of $1 million to Multiple Hauliers (EA) Limited (MHEA) of Kenya. The company, established in 1982, is the largest cross-border transporter in East Africa and the largest transporter of fuel to Uganda. MHEA is expanding operations, driven by rising demand in Uganda and in the Great Lakes countries of Rwanda, Burundi and Eastern Congo (formerly Zaire). The project will finance 16 new prime movers with tanker trailers at an estimated project cost of $2.8 million.
Hotel in Namibia receives $1.2 million loan
IFC has approved a venture loan of $1.2 million for Pandu Ondangwa Hotel to build the Cresta Lodge in Ondangwa, an emerging business center in northern Namibia. The 3-star, 90-room hotel will be managed by Cresta Hospitality, an experienced hotel management company that operates 18 other hotels in southern Africa. The shortage of quality accommodation and strong projected growth in the region indicate the market's readiness for such a hotel facility.
Agro-Industry Company in Tanzania receives $450,000 million loan
IFC has approved a loan of $450,000 to Pallsons Consumer Industries, Tanzania. Pallsons -- an IFC-financed project which produces edible oil and cake from sunflower seeds -- will increase capacity by 50 percent and streamline its existing plant in order to lower costs. The increased production will help satisfy the local demand for sunflower seed oil, reduce imports of palm oil, and improve farmers' incomes through increased consumption of sunflower seeds.
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