Motsepe, Distell invest more than R1.4bn in Kenyan city

South African companies have invested more than $100 million (about R1.4bn) in Tatu City, a special economic zone just outside Nairbobi, Kenya with an area of more than 2000 hectares. The development represents one of the largest concentrations of South African foreign investment in Kenya and East Africa.

SA HIGH COMMISSIONER VISITS TATU CITY PROJECTS

Mninwa Johannes Mahlangu, South Africa’s High Commissioner to Kenya, visited the sites of investments made by South African countries in Tatu City on Tuesday, 22 June.

Mahlangu’s stops included the Crawford International School – an eight hectare, multi-billion shilling investment [1 Kenyan Shilling = 0.13 South African Rand] by ADvTECH, a Johannesburg Stock Exchange (JSE) listed education group; Kenya Wine Agencies Ltd. (KWAL), which is owned by Distell; and Cold Solutions, an investment by ARCH Emerging Markets Partners, a company backed by Patrice Motsepe.

“I am delighted to witness these transformational investments South African businesses are making in Kenya,” said Mahlangu. The High Commissioner was attending a street renaming ceremony in Tatu City where the road that leads to the Crawford International School was dubbed “Crawford Road.”

“The South African and Kenyan governments are committed to strong bilateral trade and investment, and our private sector businesses are natural partners to grow capital flows and knowledge exchange,” added Mahlangu.

Jenny Coetzee, the Managing Director of Crawford International, said the school had experienced a surge in enrolment since opening in Tatu City in 2019.

COLD SOLUTIONS AND KWAL

Mahlangu visited the Cold Solutions site, a 15 000 square metre “flagship facility”, which is on track to open in 2022. The facility is expected to improve food and pharmaceutical security and boost economic development in Kenya and the rest of the region.

South African entrepreneur Patrice Motsepe is backing Africa Rainbow Capital, which jointly owns the entity that is undertaking  the investment, Cold Chain Solutions East Africa Fund.

“Cold Solutions’ first facility in Kenya is on track to open next year and experiencing strong demand from tenants ranging from food to pharmaceutical companies,” said Jared Irving, the Managing Director.

Mahlangu concluded his Tatu City visit at KWAL, which established a $40 million production facility on 12 February 2021. The Kenyan Government is a significant shareholder, via its Industrial and Commercial Development Corporation, alongside South African beverage conglomerate Distell.

The Tatu City Special Economic Zone is currently home to more than 60 local, regional and multinational businesses.

Main Image: Zimbo