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US financial lender DFC to open office in Nairobi

The United States Development Finance Corporation has announced plans to establish an office in Nairobi as it seeks to expand its presence in Africa.

The announcement is based on its need to facilitate financing for development projects, promote private sector growth and strengthen trade relations between the United States and Africa.

It is intended to serve as a strategic hub to enhance its investment activities and support economic growth in the region.

“He will play a key role in driving the development of his portfolio in key sectors of the country in agriculture, health, electric mobility, energy, infrastructure and financial inclusion,” the White House said in a statement.

This, he adds, includes on-lending to small and medium-sized businesses and women entrepreneurs.

DFC is a U.S. development finance institution and agency that invests in development projects in low- and middle-income countries.

The announcement came after President William Ruto’s state visit to the United States.

The White House said that as part of its ongoing initiatives, the DFC recently approved a loan of approximately $180 million to Acorn Green Housing, a real estate developer that builds and operates affordable student housing in Kenya.

β€œThe DFC investment is expected to catalyze an additional $360 million in local Kenyan investments in one of the largest green housing portfolios in Africa,” the statement read.

Additionally, through Pezesha Africa Limited, the lender is providing a $500,000 technical assistance grant to create a proprietary credit scoring model.

This will enhance the company’s underwriting capabilities for small and medium-sized business customers.

Pezesha is a capital enabling lending infrastructure platform focused on increasing access to finance for retail MSMEs by integrating financial services into existing supply chain verticals.

DFC recently announced a $500,000 loan to Kenya-based Keep IT Cool, a business-to-business sales and aggregation platform to connect fish farmers with buyers using cold chain technology.

This loan was part of the Africa Small Business Catalyst program in partnership with USADF and USAID.

The institution has also announced a second loss guarantee of $10 million for the African Fertilizer and Agribusiness Association.

The objective is to expand the sale of fertilizers on credit to small and medium-sized agricultural input suppliers in Kenya, Zambia and Ghana.

The agreement is expected to enable up to $360 million in additional fertilizer sales in these three countries over the next three years, boosting regional food security and agricultural production.

Kentegra Biotechnology also received a $10 million loan to support the construction of a new facility to expand its production capacity for refined pale pyrethrum extract, a key ingredient in organic pesticides.

“The DFC loan provides women farmers with more predictable income, higher prices than alternative crop options, and training to implement best agricultural practices and financial planning tools to fully benefit from the increased income resulting from pyrethrum cultivation,” he said. the White House.

According to the White House, the U.S. Trade and Development Agency previously announced a $660,000 grant for a feasibility study.

The aim is to support the development of this facility to facilitate Kenya’s ability to respond to international demand for safer and more environmentally friendly insecticides.

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