Africa Logistics Properties raises $4m from DOB Equity to improve logistics & warehousing in Kenya

Africa Logistics Properties has received $4m from Dutch firm DOB Equity to improve logistics & warehousing in Kenya with a new portfolio of modern grade-A warehousing parks across Africa to improve logistics operating efficiencies and costs.

With initial focus on Nairobi, ALP has developed and managed 2 million square meters of modern logistics and distribution warehousing centers across growth markets. DOB Equity will invest the $4 million alongside CDC Group, IFC, Co-Founder Maris and Mbuyu Capital and other local and international investors.

In a statement, Brigit van Dijk – van de Reijt, CEO at DOB Equity said, “The warehousing supply in East Africa is still fragmented, often located in congested areas, and lacking in overall industrial quality. It can be unsuitable for occupiers because of high operational and cost inefficiencies that hamper international companies looking to set up local operations, and prevent local SME’s to reach scale.”

The move will help ALP to drive logistical costs down by providing grade-A warehousing facilities which create built-for-purpose supply chain infrastructure to drive efficiencies that should lead to lower prices for consumers. ALP helps enable companies to focus on their core competencies instead of having to construct, manage, and maintain warehouses on their own. For SME’s in particular, their services will create instant growth opportunities.

DOB Equity says that a well-functioning logistics sector is crucial for economic development. Currently, both international and local companies are being constrained by a lack of modern, high quality and efficient warehousing across the region. Kenya is ideally located as an entry point and hub for eastern and central Africa to benefit from the region’s industrialization, growing trade, and expanding consumer markets.

Toby Selman, CEO and Co-Founder of ALP, says: “As ALP are also targeting Kenyan growth businesses in addition to larger, international companies, we are pleased to have DOB Equity on board as they have a strong foothold in the local SME market, which will benefit us going forward.”

In March, ALP Completed a $35m initial equity capital raise from CDC Group and IFC, a member of the World Bank Group with participation from Mbuyu Capital Partners with an investment of up to $5 million.

The investment – US$25m from CDC and US$10m from IFC – was to be used for ALP’s developments in Nairobi, Kenya, the trading hub of East Africa, where the lack of quality international standard warehousing space has long been a constraint on business growth and economic development. Quality warehousing improves operational efficiencies by reducing waste from poor storage, increasing the speed of product delivery and improving product security.

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ALP is also backed by Maris, a Nairobi based private investment business focused on sub-Saharan Africa which invested US$8million.

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