Kenya breaks ground for first green garment factory from recycled containers

Kenya's Athi River Export Processing Zone (EPZ) is set to be home to the world's first sustainable garment factory constructed from upcycled containers, as a green industrial garment factory breaks ground with a hefty investment. The United States Agency for International Development (USAID) has injected $530,000 into the project, alongside a $1.3 million loan from Trade Catalyst Africa (TCA). The textile center, spanning 5,000 square meters, aims to cater to the urgent demand in the ready-made garment manufacturing sector, where an estimated 100,000 square meters of space is needed. CEO of Trade Catalyst Africa, Duncan Onyango, shared insights on the innovative project in an exclusive interview with CNBC Africa. The factory's construction utilizes end-of-life containers, enabling rapid development within a fraction of the typical time frame, allowing for modular expansions according to the off-taker's requirements. The incorporation of renewable energy sources, particularly solar power, and water conservation systems like rainwater harvesting, position the factory as a pioneer in eco-friendly production. Consumers' increasing preference for sustainable products has steered the focus towards energy efficiency, resource conservation, and environmentally responsible manufacturing processes. The long-term sustainability of operations hinges on these fundamental pillars, ensuring that the factory remains a frontrunner in green industrial practices. With a strategic investment horizon of 10 years, TCA has tailored a financing model that keeps rental costs affordable for tenants, fostering growth within the sector. By balancing debt instruments with grants for sustainable infrastructure, the project aims to maintain competitive rental rates below the market average. The projected Internal Rate of Return (IRR) stands between 17% to 18%, offering an enticing proposition for potential investors. The scalability and replicability of the project extend beyond Kenya's borders, with TCA eyeing similar financing structures for sustainable developments across Africa. The expansion of such eco-friendly facilities can capitalize on the burgeoning demand in the garment manufacturing sector, particularly in exporting to international markets. Kenya's commitment to sustainability is reinforced by government policies that promote eco-friendly practices and cutting-edge technologies in various industries, including textiles. By integrating energy-efficient systems with renewable energy sources, the country aims to reduce reliance on conventional energy, thereby enhancing cost-effectiveness and environmental stewardship. This innovative approach positions Kenya as a frontrunner in sustainable manufacturing practices, prompting optimism for the future of green industrial development in Africa.