The Norwegian government’s investment fund, Norfund, has signed a USD 14 million (Sh1.77 billion) financing agreement with Hela Apparel Holdings PLC.
The money will bolster the development of Hela’s manufacturing operations in East Africa.
Norfund supports sustainably driven business operations in developing countries.
Hela Kenya, established in 2016, is the largest manufacturing facility within the Hela Group and employs over 4,000 people.
William Nyaoke, Norfund's Regional Director for East Africa, said on Monday, the facility is also one of the largest of its kind in Kenya, currently producing approximately 20 per cent of the country’s total apparel exports.
“Hela was the first major Sri Lankan apparel manufacturer to establish operations in Kenya and has played a leading role in the rapid growth of the industry across the continent,” said Nyaoke.
Hela has operations in Ethiopia and Egypt.
“Our expansion to Africa has been a rewarding venture, and we continue to see many opportunities within the region for further development,” said A.R Rasiah, chairman of Hela Apparel Holdings.
“The intended investment in our Kenyan manufacturing facility, which will be supported by this lending from Norfund, is a key part of the Group’s strategy to remain globally competitive,” he said.
He welcomed Norfund's support saying the funds will be used to strengthen Hela's strategic supply chain partnerships in East Africa.
“This will enable Hela to leverage regional sourcing from Kenya and Tanzania to a larger extent, providing significant cost and lead time advantages for manufacturing in the region,” said Rassiah.
