IFC provides loan to support Tanzanian glassmaker Kioo
IFC, a member of the World Bank Group, announced a loan to Kioo, East Africa's largest producer of glass bottles, to help the Tanzanian company weather COVID-19-related challenges, protect jobs, and invest in energy-efficient machinery to reduce its carbon footprint.
IFC's $10 million loan will provide Kioo with working capital during a challenging time for the region's beverage industry, which is facing falling demand because of COVID-19 and associated measures to contain its spread, including the closure of bars and restaurants. The loan to Kioo is part of IFC's $8 billion fast-track financing package to support existing clients and preserve jobs and economic activity during the COVID-19 pandemic.
Kumar Krishnan, General Manager at Kioo said: "Despite the effects of the pandemic, Kioo, with IFC's support, continues to pursue its long-term vision of continuous improvement. IFC's support will enable us to emerge from the current, difficult environment in a stronger position and be well placed to serve our customers as a preferred supplier."
Frank Ajilore, IFC Resident Representative for Tanzania and Burundi said: "Supporting businesses with financing is a major part of IFC's strategy to protect jobs and sustain economic activities as we navigate the challenges of COVID-19. Our investment in and partnership with Kioo will help strengthen the company's cashflow and lay a foundation for a stronger future."
Kioo employs 600 people and supplies glass containers to 12 countries on the African continent, as well as to countries in the Indian Ocean. Glass containers account for 90 percent of beverage packaging in sub-Saharan Africa. Kioo has committed to reducing its environmental impact by installing energy-efficient equipment at its factory in Dar es Salaam, including more efficient production systems. Since 2015, IFC has invested more than $300 million in Tanzania in the agriculture, light manufacturing, and infrastructure sectors.