This archive report was first published on 23 June 2020.
On June 23, 2020, Flame Tree Group (FTG) announced that it had secured a Sh905 million ($8.5 million) credit line from SBM bank to improve working capital and fund growth, despite freezing loan payments due to the coronavirus pandemic.
The credit line, which represents a 60% increase in the firm's funding capacity, will provide funding to the group's working capital, letters of credit, and asset financing.
FTG is involved in a range of activities, including manufacturing of plastic water tanks, mobile toilets, septic tanks, pipes, paints, fibre glasses, cosmetic products, and synthetic hair.
Chief executive Heril Bangera said that the firm had to make critical decisions in a relatively short time due to Covid-19 to secure the viability of the 14 companies operating under FTG.
"We are proud of the agreement we signed with SBM, and the confidence they have put in our Group," said Mr Bangera.
Despite the challenges posed by the pandemic, FTG has seen a mixed impact, with increases in sales of water tanks and hand sanitisers, as well as a decrease in the price of plastic raw materials due to the fall in fuel prices.
However, the firm's Rwanda operations have been heavily affected, with reduced sales for products such as snacks, spices, and playground equipment.
