Displaying items by tag: CDC Group

Kenya: The UK-based development financier CDC is set to acquire a 40% stake in ARM Cement, after the firm injected US$140m into the family-owned Kenyan cement manufacturer.

The CDC funds will allow ARM to retire expensive short-term loans that have been weighing down the company’s earnings. The CDC is owned by the UK’s Department for International Development.

“We are proud to back a founder-led frontrunner in East African manufacturing,” said Mark Pay, CDC’s managing director for equity investments. “This investment will strengthen a company (that is) making a difference to the local economy, bringing jobs and lower-cost raw materials to a region traditionally dependent on imports.”

Malawi: LafargeHolcim and CDC Group, the UK's development finance institution, have signed a Memorandum of Understanding to set up a company to produce and promote an affordable low-carbon construction solution for developing countries.

The new company aims to scale up production of earth-cement bricks, a simple, reliable, affordable and environmentally-friendly building material that was launched by LafargeHolcim in Malawi in 2013.

Deforestation and forest degradation account for the majority of Malawi's greenhouse gas emissions. The manufacture of burnt bricks, the main building material in Malawi, is a significant contributor as a result of the wood-fired clamp kilns used in the production process.

LafargeHolcim has developed an alternative solution to burnt bricks. Durabric, designed by the Group's research and development centre, is produced from a mixture of earth and cement compressed in a mould and left naturally to cure in the sun without firing. Durabric contributes to a reduction in greenhouse gas emissions and the deforestation associated with wood fuel consumption. The bricks are also more resistant than fired bricks and reduce construction costs.

"Durabric offers many benefits compared to the traditional bricks used for construction in the developing world. It is easy to manufacture, has a smaller environmental footprint, offers more resistance, all at a lower cost," said Gérard Kuperfarb, Member of LafargeHolcim's Executive Committee in charge of Growth and Innovation. "Through the new company we are setting up with CDC, we will accelerate the development of this affordable, low-carbon solution in developing markets where traditional bricks are commonly used."

More than three million of these bricks have already been produced in Malawi and have been used in around 500 buildings. A brick production plant is being built to increase availability of Durabric in Malawi.