American firm Restance Inc is set to start manufacturing condoms locally under a “major brand name” after raising Sh52 million ($500,000) to bring its total investment to Sh502 million.
The investment is part of a campaign designed to contribute to the United Nations’ goal of ending the Aids epidemic. The company said it would reveal the brand name on World Aids Day, which is marked on December 1.
“Restance plans to contribute to the UN goal to end the Aids epidemic by making condoms available everywhere in Africa through the previously announced #DoItForAfrica buy-one-give-one campaign where an anticipated $20 million (Sh2.06 billion) worth of condoms will be sold in North American and for each a condom will be manufactured in Africa and given away,” said Restance Inc chief executive Randell Torno.
“The contract announced on Monday is the initial commitment for the condoms to be manufactured and given away in Africa.”
This comes a few weeks after the company announced that it had already acquired assets and business operation licences including manufacturing equipment at a cost of Sh450 million.
The additional Sh52 million means the total investment is now Sh502 million.
The investment is the company’s first step in fostering its presence in the East African market with prospects of starting several other business lines.
This follows an October meeting between Mr Torno and Kenyan Ambassador to the US, Robinson Githae, to discuss conducting an investment trade mission to Kenya.
Mr Torno said Restance Inc was eyeing stakes in technology and systems integration services, utility support services, affordable housing and health products manufacturing.
The firm recently acquired East African Development Partners as part of its growth strategy in East Africa.
The global condom market is expected to reach $9.6 billion (Sh988.8 billion) by 2021 at compound annual growth rate (CAGR) of 8.2 per cent, a Research and Markets report shows.
The CAGR is a useful measure of growth over time. UN reports show that condom use in Africa is expected to keep growing.
Condom use is the most effective way of preventing sexually-transmitted infections such as HIV/Aids.