Huatong Group to get $60 million IFC loan to expand cable manufacturing in Africa

International Finance Corporation (IFC) is set to provide up to $60 million in financing to Hebei Huatong Wires and Cables Group to support the expansion of electric cable manufacturing capacity in Tanzania and Cameroon, strengthening Africa’s industrial base and power infrastructure.

The proposed investment, structured as a senior loan, will be channeled through Huatong Group and its subsidiaries, including HT International Trading Services in Singapore, Everwell Cable and Engineering Company in Tanzania, and Everwell Cameroon Cables and Engineering. The funding will primarily support capacity expansion in Tanzania and provide working capital for operations in Cameroon.

Huatong scales Tanzania production capacity

Huatong Group, a China-listed manufacturer of wires and cables, operates production facilities across six countries and has steadily grown its presence in Africa. Through its regional subsidiaries, the company supplies low- and medium-voltage cables across East and Central Africa.

The IFC-backed financing will enable increased production of copper and aluminium cables in Tanzania, particularly at the company’s Mkuranga facility near Dar es Salaam. In Cameroon, the company’s Douala-based operations will receive additional working capital to scale output and meet rising regional demand.

Cameroon operations receive working capital boost
The Zhang family remains the controlling shareholder of Huatong, holding approximately 35% of the company, with the remaining shares owned by institutional and individual investors on the Shanghai Stock Exchange.

The investment is expected to support electrification efforts in both countries by expanding access to locally manufactured cables. By reducing reliance on imports, the project aims to strengthen domestic supply chains and lower infrastructure costs associated with power expansion.

IFC estimates the project could create about 920 direct jobs and approximately 2,580 indirect jobs across Tanzania and Cameroon, while also supporting industrial growth, boosting exports, and contributing to foreign exchange earnings.

Project to support jobs and electrification
In addition to financing, IFC will provide advisory support through its Workforce and Gender Project, including a corporate gender and inclusion assessment and the development of policies to improve workplace diversity and increase women’s participation.

IFC’s involvement will also ensure environmental and social oversight, aligning the project with international performance standards and strengthening Huatong’s sustainability and governance practices.

As demand for electricity infrastructure rises across sub-Saharan Africa, Huatong’s expansion is expected to position the company as a key supplier of essential components for grid development and industrial growth. If successfully executed, the project could serve as a model for future industrial investments aimed at reducing dependence on imported electrical components and accelerating access to reliable power across the continent.