Summary of Proposed Investment
Project Number
10149
Company Name
Magana Flowers Kenya Ltd
Date SPI Disclosed
Feb 23, 2000
Country
Kenya
Industry
Agribusiness and Forestry
Status
Completed
Sector
Horticultural Products (Flowers)
Department
Regional Industry - MAS Africa
Environmental Category
B - Limited
Previous Events
Approved : Mar 30, 2000
Signed : Jun 16, 2000
Invested : Dec 15, 2000
Project Description
Summary Of Project Information (SPI)
| Project Name | Kenya - Magana Flowers |
RegionSub-Saharan Africa
Sector
Project No010149
Projected Board DateApril 15, 2000
Company NameMagana Flowers (K) Limited
Technical Partner and/or Major Shareholders
The project is sponsored by Magana Holdings Ltd. (MHL) which owns 70% of the shareholding. MHL is a family-owned holding company incorporated in Kenya in 1973. It is involved in coffee farming, real estate development and investment. It is headed by Dr. Magana Njoroge Mungai who is a well-established businessman in Kenya. The other shareholders are Kenya Equity Capital Ltd. (KECL) which currently holds 30% of the equity. KECL is an investment fund that was established by Equator Bank and the European Investment Bank (EIB) to promote economic development in Kenya.
Project Cost Including proposed IFC investment
The total project cost is estimated at US$3.0 million. The proposed IFC investment is an A loan of US$1.2 million
Location of project and Description of site
Magana Flowers farm is situated on the outskirts of Nairobi, around 18 km from the city centre off the main Nairobi-Nakuru highway, and 30 km from the main International Airport. The company is carrying on rose growing operations on an area of about 7 ha on a gently sloping hill that is well drained and terraced.
Description of Company and Purpose of Project
Magana Flowers is engaged in rose cultivation for export to the European market. The operation was established in 1994 on a 2 ha farm. It has since undergone two phases of expansion to its current size of 7 ha exporting about 14 million stems from 6 million in 1995. The company proposes to undertake an expansion of an additional 4.5 ha comprising of 4 ha of roses and 0.5 ha of lilies, which have had successful trials and a positive market response.
IFC provides a foreign currency loan, which is not readily available in Kenya. IFC will also play an important role in ensuring the company complies with the World Bank environmental protection guidelines through its regular supervision. The project creates employment for about 80 workers, the bulk of which will be women and will earn the country about US$2.6 million of foreign exchange. This is in line with the World Bank’s strategy of alleviating poverty and establishing sustainable local resource-based industries. The project will introduce high agronomical standards on the farm, which will ensure high quality export products and thus help Kenya to sustain its position as a quality horticultural producer.
Environmental Category and Issues
This is a category B Project. Environmental and social issues associated with this project include land acquisition, pesticides handling and application, integrated pest management, water supply and management, waste disposal, provision of protective equipment and training, health monitoring, plant hygiene, and CFCs.
The is from the InfoShop.
| Host country location of environmental documents | Town Council''s Office, Kikuyu. |
Date SPI sent to InfoShop February 23, 2000
“This Summary of Project Information is prepared and distributed to the public in advance of consideration of the proposed transaction by the Corporation’s Board of Directors. It is provided for the purpose of enhancing the transparency of IFC’s activities and should not be construed as presuming the outcome of IFC Board consideration.”
For Additional Information contact: Corporate Relations Unit -
telephone: (202) 473-7711
facsimile: (202) 974-4384
Environmental documents for this project are available at http://www.ifc.org and from the World Bank InfoShop (http://www.worldbank.org/html/pic/aboutinfo.html).
Sponsor / Cost / Location
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