Insta II

completed

The proposed IFC investment is comprised of (i) a US$3.5 million A loan for IFC’s own account, (ii) a US$4 million Parallel loan, and may include (iii) a US$3.5 million from IFC in its capacity as implementing entity for the Private Sector Window (“PSW”) of the Global Agriculture and Food Security Program (the "GAFSP”) (the “project”). The proposed project is a refinancing and growth program to help Insta expand its Ready to Use Therapeutic Food (“RUTF”) production capacity on the back of an increased supply to the East Africa region.Insta is a leading East African manufacturer of enriched food products - RUTF and fortified Corn Soy Blend product (“CSB”) - for the emergency and humanitarian relief sectors, reaching children suffering from acute and chronic malnutrition. In 2014, Insta’s capacity comprised 4,500 MT per year of RUTF and 30,000 MT of CSB products. RUTF is a homogenous mixture consisting of peanut paste, sugar, vegetable oil, and milk powder fortified by 23 vitamins and minerals. The manufacturing process involves automated blending of components, and packing into sealed foil sachets. Products are ready to eat directly from the sachet and have a 24-month shelf life at 30 degrees Celsius. The company has a patent usage agreement with Nutriset, a company based in France, to manufacture a peanut paste for use by Severely and Acutely Malnourished (SAM) persons who are usually fed the product for six weeks before progressing to other food types.An investment to fund Insta’s new RUTF production facility was previously considered in early 2014. In June 2014 Insta proceeded with the new facility as the move was crucial to elevating food safety standards and increasing production efficiencies. The new facility has been operational since June 2015. Further expansion of RUTF production is expected within the footprint of the existing premises by installation of new, more efficient equipment and replacing the existing facilities with modern machinery to implement and enhance best manufacturing practices. Insta’s offices and production sites for the RUTF and CSB products are located in the Athi River Export Processing Zone (EPZ), Machakos County, Kenya, approximately 40 km from Nairobi. EPZ was created, and is now managed, by a State Corporation owned by the Government of Kenya through an Act of Parliament in 1995 for the promotion, facilitation, and development of export-oriented investments. Insta leases about two hectares of land; the lease is for a total of 30 years (beginning in 2003.) EPZ management provides 24-hour security, street cleaning services, lighting, landscaping, access to water/ power supply and access to waste and wastewater management services.