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German investment for Kenyan fruit juiceGermany organisation, Deutsche Investitions- und Entwicklungsgesellschaft is providing the Kenyan enterprise Kevian Kenya with a long-term loan of $7.5 million US for expansion investments.
Kevian is a well established manufacturer of fruit juice brands that has enjoyed strong market growth in recent years.
"With our financing, we support a local company in becoming an international player and moreover, we help numerous farmers to earn a regular income by acting as suppliers," said Bruno Wenn, Chairman of DEG's Management Board on the occasion of the signing ceremony in Thika; Kenya.
Kevian plans to use the loan to improve production capacity and packaging systems. As part of the expansion Kevian will also enter into the production of fruit juice concentrates that are ordinarily imported. This will offer greater opportunities for local producers of mango, tomato, carrot, pineapple and passion fruit, amongst other produce.
"Kevian is a showcase of successful Kenyan-German cooperation: for the benefit of companies in both countries and for improving livelihood of many Kenyians smallholders. And, it demonstrates the role private enterprise can play to foster sustainable, economic development, said Margit Hellwig-Bötte, the German Ambassador to Kenya on the occasion of the signing ceremony.
A large proportion of the juices manufactured at the facility will be exported to the German market as German company, Rudolf Wild and Co, is a large company of Kevian.
The bottling will be taken care of with a PET line supplied from German organisation, Krones and will be supported and maintained by local people who will receive training from German engineers.
Africa is a key region for DEG. With new commitments of 233 million Euro, it was able to slightly exceed its positive result of 2010 (227 million Euro) in Africa. Of this amount, 188 million Euro were committed in sub-Saharan Africa.
Currently DEG has three representative offices in Africa, which, in addition to Kenya, are located in Ghana and South Africa. In addition, the first joint office of DEG and the Dutch development finance institution FMO will be opened in Johannesburg this week.
Publication date: 4/18/2012
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