Improvon, Nairobi Gate $40mn investment driving industrial growth in Kenya

Improvon, a South African real estate investment company, is making significant strides in driving industrial growth across sub-Saharan Africa, with Nairobi Gate Industrial Park in Kenya as its flagship project. The park, strategically located along Nairobi's Eastern Bypass, is set to break ground on Phase 5 on October 30th, introducing an additional 12,000 square meters of modular warehouse units. With a substantial $40 million already invested and a projected total investment of $160 million by 2040, Nairobi Gate offers businesses Special Economic Zone (SEZ) benefits, such as tax incentives, duty-free trade, and access to key regional and global markets like the East African Community (EAC), the African Continental Free Trade Area (AfCFTA), and the African Growth and Opportunity Act (AGOA). CNBC Africa's Tabitha Muthoni recently had a conversation with Dean Christopher Shillaw, Managing Director at Nairobi Gate Industrial Park, to delve deeper into the investment and its impact on trade initiatives. Imrpovon's expansion into Kenya and Zambia signifies its strategic growth beyond South Africa's borders, with Kenya emerging as a prime investment destination. The macroeconomic conditions of Kenya, coupled with its industrial sector's state and strategic location, make it a compelling choice for investment. In Zambia, Improvon acquired 100 acres of land near the airport, aligning with its Sub-Saharan Africa strategy. Moving into Kenya, the company carefully assessed the country's bulk infrastructure and evaluated its connectivity to neighboring countries and key transport modes like railways and inland container terminals. Kenya's robust regional infrastructure made it a strategic focal point for Improvon's investments. The company has already invested $40 million in acquiring 100 acres of land in Kenya and is in the process of developing a world-class logistics and distribution park close to the airport, offering state-of-the-art facilities to support businesses in the region. The development comprises 450,000 square feet of A-grade warehousing and light industrial facilities to cater to a spectrum of businesses, from small to large enterprises. Improvon is currently breaking ground on the project, with a keen focus on supporting Kenya's Vision 2030 and industrialization goals. The park is set to create a substantial impact by generating employment opportunities and fostering business synergies, contributing to the local economy. Improvon anticipates significant financial returns from its investments, targeting double-digit yields with dollarized rentals to align with its financial structure. With a current $40 million investment and an additional $7 million earmarked for the immediate future, the company envisions a long-term financial commitment of $160 million by 2040. Nairobi Gate has already demonstrated its positive impact on the local economy, with 15-20 tenants engaged in various sectors such as agro-processing, humanitarian aid, pharmaceuticals, logistics, and food processing. This has led to the creation of over 400 jobs, underscoring the park's role in driving employment opportunities and economic growth in the region. Additionally, Nairobi Gate's strategic alignment with regional trade initiatives like the AfCFTA and AGOA is crucial in facilitating international trade. By developing essential infrastructure elements such as customs controlled areas and improving accessibility to trade agreements, Nairobi Gate is instrumental in enabling seamless trade within the East African Community and beyond. The emphasis on infrastructure development and tariff reduction underscores the park's commitment to enhancing trade facilitation and amplifying the benefits of regional trade agreements. As Improvon continues to expand its footprint and investments in Kenya, the Nairobi Gate Industrial Park emerges as a pivotal player in driving industrial growth, fostering economic development, and bolstering regional trade integration.