IFC plans to construct a new garment manufacturing facility adhering to highest environmental standards in partnership with Kenyan apparel manufacturer Royal Apparel EPZ. The company also aims to create new jobs, especially for women.
To achieve its goals, IFC will loan Royal Apparel EPZ $15 million to support the construction of the new factory near Nairobi, creating an estimated 3,700 jobs.
The investment is the first to be received from the Canada-IFC advancing Gender Equality, Resilience, Opportunity and Inclusion Worldwide Facility (Canada GROW gender fund). IFC’s investment in Royal is supported by the development of an earlier project including 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 and its associated companies, Royal Garment EPZ and Royal Clothing EPZ, together Royal Apparel Group (Royal).
Partnering with IFC enables the company to leverage their extensive experience and resources to achieve growth objectives and produce high-quality apparel, says Omprakash Shukla, Chairman, Royal Apparel EPZ. The company aims to empower marginalized communities by providing jobs that promote sustainable livelihoods, eradicate poverty, and elevate living standards.
EDGE-certified, Royal’s new factory will feature energy-efficient machinery, and renewable power sources. Developed by IFC, EDGE is a certification tool that recognizes buildings designed to reduce energy and water consumption while incorporating sustainable building materials.
An export-focused apparel manufacturer, Royal supplies its products to 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.
