Hela Apparel Holdings Plc, which operates a manufacturing plant in Kenya, has secured a $5 million (Sh700 million) loan from development partners to support its growth strategy in Africa.
According to a report by Peoples Daily, the investment is part of Hela Apparel Holdings’ larger debt funding round, which involves KfW, a German State-owned investment and development bank, and Aavishkaar Capital, an impact investment firm focused on Environmental, Social, and Corporate Governance (ESG).
Chairman of Hela Apparel Holdings, A.R Rasiah noted the company, “Specializes in providing sustainable apparel supply chain solutions for renowned global apparel brands.”
The firm works closely with international retailers, handling everything from design to delivery in product categories such as intimate wear, activewear and kids’ wear.
Hela Apparel Holdings currently operates factories not only in Kenya but also in Ethiopia and Egypt.
Mr Rasiah expressed gratitude for the investment, emphasizing that, “It would support the expansion of their Egyptian manufacturing facility to its full capacity.”
The Managing Partner of Credit at Aavishkaar Capital, Ashish Patel commended Hela Apparel for its transformative role in the apparel and textile industry within the region.
He highlighted the company’s potential to create extensive job opportunities while building a sustainable business.
Stephanie Lindemann-Kohrs, Director at KFW Development Bank, highlighted that “KfW’s development Equity and Fund business, in collaboration with various partners, aims to support impactful businesses globally and enhance the ESG standards of investee companies.”
She emphasized the significant potential for companies like Hela Apparel Holdings to meet the growing demand for sustainable products from global consumers and explore new markets.
Ms Lindemann-Kohrs stated that the investment in Hela Apparel Holdings would have a transformative impact on the textile and apparel sector in Africa.
She also mentioned that the ESG First Fund would continue to prioritize environmentally conscious and sustainable businesses that generate substantial employment opportunities.
In February, Norfund invested $14 million into Hela Clothing to bolster its operations in East Africa.
Hela Apparel Holdings made its entry into the African region in 2016 as a pioneering multinational apparel manufacturer.
Initially employing 250 individuals in Kenya, the company has since expanded rapidly and now employs an estimated 10,000 people across the African continent.