IFC - International Finance Corporation
IFC - International Finance Corporation
09/12/2024 | Press release | Distributed by Public on 09/12/2024 05:30
IFC Backs Marifala to Boost Local Furniture Manufacturing in Guinea
Conakry, Guinea, 12 September 2024 - To reduce reliance on imports, create jobs and help increase access to good quality and affordable furniture in Guinea, IFC today announced a financing package for Marifala Gallery Sarlu (Marifala), the leading national producer of modern furniture.
IFC will provide a loan of up to US$13 million to help Marifala construct a modern industrial complex to consolidate and expand its operations, which are currently scattered across Guinea's capital city of Conakry. IFC's support will enable Marifala to increase its efficiency and triple its production capacity, helping the company transition to mass production of lower-cost, quality furniture produced domestically. IFC's investment is supported by a subordinated concessional loan of up to €6 million (US$6.5 million) from the International Development Association Private Sector Window (IDA PSW) Blended Finance Facility .
The funding will also help Marifala build four new retail stores, three in Conakry and one in Bamako, Mali.
IFC's investment is the first under the Local Champions Initiative, a program designed to provide advisory and financing support to leading companies in the manufacturing, agribusiness and services sectors which have the potential to expand their impact, scale, and operations at the regional or global level.
"Supporting the sustainable growth of local champions like Marifala is key to helping Guinea diversify its economy and boost the local manufacturing sector," said Yosuke Kotsuji, IFC's Manager for Agribusiness for Africa. "IFC is proud to help Marifala reach the next level of growth, create more jobs, and make a difference in the furniture sector in Guinea and beyond."
"With financial support from IFC, we are poised to strengthen our production capacity, improve our facilities, and invest in new technologies to produce high-quality modern furniture. In addition to stimulating local furniture manufacturing in Guinea, this funding will positively impact employment by creating new opportunities for local workers. We are hiring and training more qualified personnel, which helps build the skills and capabilities of the Guinean workforce", said Marifala's CEO, Abdoulaye Diallo.
The furniture market in Guinea is booming, backed by a growing urban population and a burgeoning real estate sector. However, 75 percent of the current market comprises imports, which often have long lead times and high transport costs. Ramping up local production will create hundreds of jobs along the value chain and, at the same time, give Guinean consumers wider access to affordable, high-quality products with shorter delivery times.
In addition to its financial support, IFC will provide upstream advisory services to help Marifala assess the feasibility of developing its own forest concession operations and improve its financial management practices. These initiatives will enable a traceable and sustainable supply of solid wood that is compliant with IFC's performance standards and meets international sustainability benchmarks, as well as the sustainable management of its financial resources. IFC's financial management team will help Marifala improve the efficiency of its financial operations in key areas, including financial planning and reporting, utilization of enterprise resource planning system, and working capital management.
Coupled with its focus on improving the business climate, increasing access to finance for micro-, small- and medium-sized enterprises, and supporting the development of a sustainable mining sector, IFC is increasing its investments in the manufacturing and agribusiness sectors to support Guinea's diversification agenda.
About IFC
IFC - a member of the World Bank Group - is the largest global development institution focused on the private sector in emerging markets. We work in more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries. In fiscal year 2024, IFC committed a record $56 billion to private companies and financial institutions in developing countries, leveraging private sector solutions and mobilizing private capital to create a world free of poverty on a livable planet. For more information, visit www.ifc.org.
Stay connected
About Marifala
The MARIFALA company is a company under Guinean law, present on the market of which it is currently the leader, for more than seventeen (17) years.
The company manufactures and sells:
* Solid, semi-solid and isoplane wood doors,
* Home furniture,
* Office furniture,
* Wardrobes and many other standard or custom items.
About the IDA Private Sector Window
The International Development Association (IDA) Private Sector Window was launched in 2017 to catalyze private sector investment in the poorest and most fragile countries. Recognizing the key role of the private sector in achieving the IDA goals and the World Bank Group's vision of creating a world without poverty on a livable planet, the window provides a source of co-investment financing and guarantees to reduce the risks of private investments supported by IFC and the Multilateral Investment Guarantee Agency (MIGA). IDA PSW is an option when a commercial solution does not exist and other World Bank Group tools and approaches are insufficient. For more information visit: http://ida.worldbank.org/psw