Dubai-based African infrastructure developer AriseIIP has a USD 3 bn investment plan for Kenya, looking to commit the capital across several projects over the next five years, Executive Director Nikhil Gandhi told Reuters.

The plan: The firm plans to invest in two industrial and export complexes along Kenya’s coast, another one in Naivasha outside Nairobi, as well as in the East African country’s state-owned textiles complex, Rivatex. AriseIIP says it wants to boost foreign direct investment flows into the country, aiming to get companies from over 14 countries to set up manufacturing bases there.

Who else is financing it? In exchange for project equity, AriseIIP will provide 30-40% of the financing, with the remaining expected to flow in from debt from development finance institutions and other lenders. Firms from China, Lebanon, and India have already expressed interest, Gandhi said.

Loans are also on the way: To support investors who move into the developed zones, AriseIIP will set up a USD 800 mn facility, along with Kenyan lender KCB Group and Afreximbank.

IN CONTEXT- While Iran’s regional war is shaking regional supply chains, the war may actually benefit African countries. Amid US tariff hikes, the region is poised to see a wave of foreign direct investment, as global firms shift from traditional trade routes and manufacturing hubs.

About AriseIIP: Founded in 2010, the pan-African firm develops industrial ecosystems in over 14 countries in Africa to boost exports and trade. As of last September, it is owned by four major shareholders: Afreximbank’s private equity arm (Feda), the Africa Finance Corporation, Saudi Arabia’s Vision Invest, and UAE-based Equitane Group.

UAE-Kenya ties: The two countries inked seven MoUs and agreements last year to boost cooperation across different sectors, as well as a bilateral framework agreement on economic development. The UAE’s Etihad Rail was also in talks to invest in freight operations in Kenya last summer.

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