ConTech

PROJECT

Garment Park development at Athi River EPZ, Kenya

Problem/Need:

Lack of ready-to-use fit-for-purpose spaces in Export Processing Zones (EPZ) for the garment sector in Kenya, hindering sector growth.

Solution:

Development of a 5,000-square-metre garment park to provide necessary infrastructure and facilities, supported by TCA through a blended finance model, including viability gap funding. This initiative, implemented by MODULAR EPZ, will create an EDGE-certified sustainable garment manufacturing facility using upcycled containers. The site incorporates solar renewable energy and water conservation facilities. The upcycled approach achieves speedy implementation and lower construction costs.

Capital
Raised

TCA has invested $1.3 million in subordinated debt

TCA
Interventions

Provision of subordinated debt, facilitation of senior debt, and viability gap funding to ensure project execution.

Project Participants

TCA, USAID, Modular EPZ, Gatsby Africa.

Period of
Implementation

Construction started in May 2024, with completion targeted at the end of May 2025

Target
Results

At full capacity, this industrial shed will house a garment factory, generating over 2,000 jobs, 80% of which will be women and youth.

Partnership opportunity

TCA seeks to address the lack of industrial space by structuring projects that deliver the required sustainable infrastructure to unlock garment manufacturing while providing returns adjusted for risk. This is a sweet spot for accelerating economic impact and promoting sustainability practices in construction while generating financial returns. Given the high job creation and export growth potential garment manufacturing provides, these projects should appeal to investors looking for impactful ventures.