May 20, 2024, Athi River, Kenya – The world’s first green industrial garment factory has broken ground in Athi River EPZ, with a $530,000 investment from the United States Agency for International Development (USAID) and a $1.3 million loan from Trade Catalyst Africa (TCA). This new warehouse spans 5,000 sqm and is poised to be the world’s first sustainable garment factory constructed using upcycled containers. Already under construction, the green textile center will be completed by December 2024.
With its innovative construction, and use of solar energy and rainwater harvesting, the new garment and textile center is expected to save an estimated 18 tons of CO2 annually. It will also conserve 1,000 m3 of water annually, highlighting the potential for sustainability in industrial design.
In addition to USAID and TCA funding, the new factory is a joint venture with Modular Real Estate EPZ Limited (MODULAR), a subsidiary of Container Technology Limited (CONTECH).
“This investment presents a great opportunity to build scalable and sustainable industrial space for garment manufacturing and symbolizes our dedication to environmental stewardship,” said Duncan Onyango, CEO of Trade Catalyst Africa. “By pioneering this unique industrial space, we are setting a new standard for the garment industry, positioning Kenya and Africa as leaders in sustainable manufacturing.” Duncan added that TCA is dedicated to fostering sustainable development through innovative industrial and infrastructure projects, rooted in partnerships with leading organizations and leveraged on cutting edge technologies to drive Africa’s economic growth.
The global textiles market, valued at approximately US$1.5 trillion in 2020, is poised for significant growth. This initiative will place Kenya at the forefront of this expansion by promoting eco-friendly manufacturing practices, to improve its competitiveness, therefore creating jobs, particularly for women, and boosting its export potential.
Naeem Pasta, CEO of Modular Real Estate EPZ said, “This project showcases how innovative thinking and environmental responsibility can coexist, leading to economic growth and a healthier planet. We are proud to be part of this pioneering effort.”
Importance for Kenya: The green garment and textile centre is a step forward for Kenya’s industrial sector, aligning with the country’s vision to transform into a newly industrializing, middle-income country. By adopting sustainable practices in its garment and textile production, Kenya will enhance its competitiveness in the global market. Kenya’s garment industry is a significant employer of women who will now benefit from this modern, eco-friendly facility, which is expected to create numerous jobs and provide training opportunities, thereby empowering local communities, and reducing poverty. By setting a precedent for green industrial practices, Kenya can become a model for other nations striving for sustainable development.
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About Trade Catalyst Africa
Trade Catalyst Africa (TCA) is a catalytic financing facility wholly owned by TradeMark Africa (TMA); that aims to address the challenge of access to finance for trade infrastructure and trade finance. TCA will address this through blended finance to de-risk commercial investments in trade projects. It will specifically focus on investments in trade infrastructure, both hard and soft infrastructure, and providing better access to trade finance for SMEs. USAID has provided the initial capital of US$ 25 Million to operationalise TCA. TCA will leverage this funding to raise additional capital from development finance institutions (DFIs), commercial banks, private equity funds, microfinance institutions, fintechs and other financial institutions for investment. Ultimately, TCA will be an evergreen fund and will revolve its funding across multiple projects by recouping its investments using a transparent revenue model. www.tradecatalystafrica.com
About Modular Real Estate EPZ Limited: Modular Real Estate EPZ Limited, a subsidiary of Container Technology Limited (CONTECH), specializes in the development of sustainable industrial spaces using upcycled materials. Their projects aim to set new standards in eco-friendly construction and industrial efficiency. www.contech.co.ke