Three African countries will benefit from a US $ 12 million loan from International Finance Corporation (IFC) that will be offered to Spencon International, a Kenyan-based engineering and Construction firm.
IFC communications official Houstan Bassiri says the loan to Spencon International is meant for infrastructure developmental and other projects in three countries.
The countries to benefit from the loan are Tanzania, Zambia and Uganda.
“IFC is trying to break new grounds with its investments especially in construction companies in Africa which will help the continent to meet its needs for improved infrastructure for economic and social development,” Bassiri said.
The loan which is the first investment in construction companies enables Spencon International to expand its business and works in countries were the need for improved housing, sanitation and transportation infrastructure is huge.
Experts say the investment is expected to create demand for construction materials like cement, glass, steel and bricks adding that more than an estimated 1,500 jobs are likely to be created in the construction industry.
Most countries in Africa especially in southern, central and eastern regions suffer from poor infrastructure and sanitary problems which are caused and exacerbated by lack of access to affordable short and long-term credit.
“Working with IFC will provide Spencon International with access to affordable and long- term loans fit to our business needs allowing our corporation to undertake new projects and sustain growth in Africa,” Spencon International Chairman JC Patel said in an interview.
He added that Spencon International was pleased to have good working relations with IFC which he said enabled to meet the growing needs for infrastructure development in some regions in Africa.
Mr. Patel said poor infrastructure in some African countries has brought high transport costs which restricts the development of markets, procurement of products and has also reduced mobility in Africa.
Lack of proper infrastructure has restrained Africa’s economic growth which has reduced and hampered its global competitiveness.

Daniel Tonga, Lusaka-Zambia