Stanbic Bank Ghana has closed a $20.15 million loan deal with Western Diamond Cement Limited, a company of the West African Cement SA (WACEM) Group to build a cement production plant in the Western region.
The one million metric tonne per annum cement factory will be located at Egyam Bokro near Takoradi and expected to start production in 2014.
The factory brings to four the number of cement production factories operating locally with an additional one bagging cement imported. The current cement production capacity in Ghana is 5.2 million metric tonnes per year.
Speaking at a signing ceremony in Accra, the Chairman of WACEM Group Manubhai Jethabhai Patel said the Group was committed to developing the natural resources of countries they operate in and this applies to Western Diamond Cement Limited.
“Our group seeks to develop the local resources of the countries we operate in for the benefit of the people. That is why we invest in the basic needs industry. We move into countries to help in the infrastructure development process. This facility from Stanbic Bank will go a long way to ensure we achieve our agenda of making cement easily accessible to the people of Ghana”, he said.
WACEM has two associate companies currently operating in Ghana; Savanna Diamond Cement Limited (SDCL) in the Northern region of Ghana and Diamond Cement Ghana Limited (DCGL) in the Volta Region of Ghana.
Commenting, Chief Executive of Stanbic Bank Ghana, Alhassan Andani said: “Our purpose as a bank is to improve lives. In our activities and operations we commit to ensuring that the end results bring progress to the people. As a developing economy, cement is critical to the infrastructure development process and we are delighted to be financing a project that will end in making cement easily available to Ghanaians”.
Stanbic Bank’s relationship with the WACEM Group started in 2006. The new plant is the second the Bank has financed for the WACEM Group in 3 years.
Stanbic Bank provided $15 million for Savannah Diamond Cement in 2011. WACEM operates cement factories in most parts of Africa including Congo, Cote D’Ivoire, Niger, Burkina Faso and has recently commissioned one in Mali. Stanbic has also in the past secured financing for a number of high ranking business all aimed to expand and contribute to the development of the Corporate Sector of the economy.
Head of Stanbic Corporate and Investment Banking Unit, Kwamina Asomaning said: “Stanbic Bank CIB has consistently demonstrated its commitment to support Ghana’s infrastructure base. Cement is crucial in any physical development agenda. A fourth factory to the local cement production will mean more jobs for people, and improvement in incomes. We enter into partnerships that produce results that matter.”
The Head of Investment Banking at Stanbic Bank, Sam Botchway, said the deal with Western Diamond Cement Limited was yet another manifestation of Standard Bank Group’s unique financing capabilities.
“This landmark deal underscores the structuring and execution capacity of Stanbic Bank and Standard Bank Group as a whole. Our vast network in Africa and across the globe enables us to leverage skills and synergies across borders to provide solutions and connect our clients to resources to move their business forward”, he said.