The International Finance Corp., the World Bank affiliate for investment in the private sector of developing countries, has approved $8.8 million in financing for a Kenyan project to reduce the country's dependence on imported fats and oils.
The IFC agreed to a loan for $7.4 million and an equity investment of $1.4 million in Oil Crop Development Ltd. of Kenya to help finance the $34 million project to introduce oilseed crops in rotation with other crops, such as maize, wheat and barley.
Upon completion in 1995, the project is expected to save Kenya half of the annual foreign exchange costs of importing fats and oils, which are between $40 million and $60 million.
Additional investments in the project totaling $9.2 million will come from East Africa Industries Ltd., the project's sponsor, and the Commonwealth Development Corp., the British private sector development agency. East Africa Industries and Commonwealth Development Corp., through Barclays Bank of Kenya Ltd., will make loans of $2.2 million and $10.7 million, respectively. Other local banks will provide $4.3 million.
Under the project, Oil Crop Development will contract annually with farmers to purchase their oilseed harvest at prices agreed on ahead of time. OCD also will supply farmers with seed, fertilizers and chemicals while promoting the use of modern farming techniques through extension services.
OCD will sell its vegetable oil to East Africa Industries, the main producer of edible oil products in Kenya.
*The IFC last week announced the appointment of Gunter H. Kreuter, a German national and 23-year veteran of the World Bank, to head a new Paris office, its second in Europe.
As head of the office, Kreuter will be responsible for developing relations with the European companies and acting as liaison with the agency's investment departments in Washington.
The IFC said establishing the office and Kreuter's appointment is part of an effort to bolster the IFC's promotional efforts in Europe. The IFC also has an office in London.