“Green” Commercial Complex in Rwanda Will Deliver Economic Benefits
Washington, D.C. July 28, 2011—As consumer incomes grow in emerging markets, there is increasing demand for the kind of modern, one-stop shopping experience and convenience offered by shopping malls.
IFC recently committed a $13 million financing package to help Rwandan real estate company, Market Shopping Center Limited (MSC Kigali), build and operate a multi-purpose eleven-storey commercial centre in downtown Kigali.
As Rwanda’s economy expands, the new mall will meet the growing demand for high-quality business infrastructure, especially modern office and retail space. It will also provide an urban foothold for small and medium enterprises that have trouble gaining access to commercial venues, and catalyze local employment. As Rwanda becomes an important business destination in East Africa, IFC’s investment will contribute to broad economic development.
IFC’s investment – its largest non-financial-sector related investment in Rwanda to date – will be split into a $10 million loan and $3 million in equity in Rwanda francs equivalent. The local currency financing is made possible by a unique swap agreement between IFC and the National Bank of Rwanda.
Compliance with Green Building Standards
IFC will work closely with Market Shopping Center to ensure the highest international environmental, social, health, fire, and safety standards. Malls are huge spaces to heat and cool and require full lighting in the daytime. A well-designed complex can significantly improve the retail experience while reducing energy use and operational costs significantly. Measures to be adopted are likely to include solar shading of windows, energy efficient lighting, and passive cooling. The project is expected to be more than 20 percent energy-efficient and will comply with IFC’s definition of “green buildings.”
Retail is an important sector for IFC. Since 1956, we have invested over $1.5 billion in more than 65 retail projects with over 30 clients. Most of our clients are small to mid-sized companies in developing countries, but we also finance large regional and international groups, supporting their efforts to invest in emerging markets and move down market to reach lower-income groups. Besides shopping centers, we also invest in supermarkets, discount stores, general merchandise, DIY (do it yourself/home improvement) chains, and warehousing.
Elizabeth Price Sr. Communications Officer, IFC Consumer and Social Services Manufacturing, Agribusiness, and Services Department Phone: 202-458-0387 Email: email@example.com