Bidco secures Sh3.3b from IFC to fund expansion

Bidco Oil Refineries has secured a $36.5 million (Sh3.3 billion) loan from a World Bank agency to invest in extra capacity and new business.

Chief Executive Vimal Shah said the funds from the International Finance Corporation (IFC), the lending arm of the World Bank would enable the Thika-based edible oil maker Bidco to create more opportunities for small-scale farmers.

The company has links to over 30,000 farmers, with about 10,000 of them selling their oil seeds and produce to the company.

"Bidco intends to expand its capacity in the production of soft detergents, agri-processing, and food and drinks processing," Shah told a media briefing during the signing ceremony of the loan agreement in Nairobi yesterday.

Shah said the funds would be specifically used to expand the company's plants in Nakuru and Kiambu where they have a physical presence.

German Vegarra, IFC's regional head of manufacturing, agribusiness and services for Sub-Saharan Africa, said they were eager to partner with dynamic companies like Bidco, which have the potential to become pan-African, while benefitting small scale farmers and expanding choices for consumers.

He said agribusiness is a strategic priority for IFC in light of the growing challenges of food security in Africa and worldwide. He said the sector accounts for nearly half of Africa''s GDP.