Riley Packaging is part of Corpack Africa, East Africa’s largest packaging production group. The borrower required funding in order to construct a 120 tonne per day waste paper recycling plant to be located in Kyagwe, Uganda. The plant will supply recycled paper to the other parts of the Corpack Group, contributing to reduced use of virgin paper in the business.
Riley required a loan facility to fund the construction of the plant. GuarantCo’s guarantee made it possible for Standard Chartered, the banker to the company, to offer the full loan facility for the tenor required for the business.
Like many of its neighbours, Uganda has little to no recycling system in place. Waste paper is mostly disposed of through dumping (both at landfill sites and illegally in public areas) or burnt. As economic development continues, production of such waste will only increase.
The introduction of a waste recycling plant will not only benefit the business through increased use of cost effective recycled paper, but also introduce and increase awareness of recycling programmes in Uganda, with plans to extend schemes into neighbouring countries.
GuarantCo’s support enabled Riley to raise the required financing component for the project, which will contribute to improved recycling practices in Uganda, and reducing the use of virgin paper in East Africa’s largest packaging business.