Apparel firm Hela gets $5m to support African operations
By Noel.Wandera, June 20, 2023
INVESTMENT: Hela Apparel Holdings Plc which has a manufacturing plant in Kenya has received a $5 million (Sh700 million) loan from development partners to fund their Africa growth strategy.
A.R Rasiah, Chairman Hela Apparel Holdings said the investment is a part of the apparel manufacturer’s larger debt funding round involving KfW, a German State-owned investment and development bank and Environmental, Social and Corporate Governance (ESG) impact investment firm Aavishkaar Capital.
Rasiah said Hela Apparel provides sustainability-focused apparel supply chain solutions to some of the world’s leading apparel brands by working closely with global retailers, from design to delivery in the intimate wear, activewear and kids wear product categories.
In addition to Kenya, the company has factories in Ethiopia and Egypt on the African continent.
“This investment will help us to continue this fruitful journey, particularly by supporting the expansion of our Egyptian manufacturing facility to its full scale,” Rasiah said.
Ashish Patel, the Managing Partner, of Credit at Aavishkaar Capital lauded Hela Apparels for transforming the apparel and textile landscape in the region.
“Hela is emerging as an export powerhouse, producing to global standards and has immense opportunity in enabling large scale job creation whilst building a robust sustainable business,” he said.
Global consumers
Stephanie Lindemann-Kohrs, Director, of KFW Development Bank said through their various partners, KfW’s development Equity and Fund business includes the development and backing of impactful businesses globally, scaling up the ESG standards of the respective investee companies.
She said there is a significant opportunity for companies like Hela Apparel Holdings to cater to the growing demands of global consumers for sustainable products and to reach newer markets.
“We believe this investment will have a transformative impact in the textile and apparel sector in Africa. This ESG First Fund will continue to focus on ecologically conscious sustainable businesses that also deliver significant employment opportunities,” Lindemann-Kohrs said.
Hela is a pioneer multinational apparel manufacturer to enter the African region in 2016, starting with 250 employees in Kenya. The firm has rapidly expanded its footprint and today employs an estimated 10,000 people on the African continent.