IFC (International Finance Corporation) is supporting the expansion of Tanzanian glass manufacturer Kioo to meet increasing domestic and regional demand for glass bottles and containers, the two entities announced. The project will create thousands of jobs and contribute to economic growth in Tanzania.
Under the partnership, IFC will provide a loan of up to USD 45 million to help Kioo grow its manufacturing capacity and reduce its environmental impact. With IFC’s support, Kioo will increase the amount of recycled glass that it uses in its production process, helping to reduce energy consumption.
The project will help Kioo meet growing demand in its regional markets and generate thousands of jobs directly and indirectly along its supply chain. The beverage sector in East Africa, Kioo’s primary market for refillable glass containers, is projected to grow up to 10 percent per year over the next five years. However, a supply gap in the region means that about 40 percent of the demand is met by imports. Tanzania is one of the few countries in East Africa with long-standing glassmaking and export capabilities.
By substituting imported glass with locally manufactured, cost-efficient products, the project will foster the growth of the region’s beverage industry.
“The relationship with IFC has been outstanding over the years and has helped Kioo grow. Kioo is already the largest glass manufacturer in the region and has become a supplier of choice to many of its customers. The new expansion will further boost the beverage industry’s growth across East and Central Africa. This investment is a testament to the group’s continued belief in Africa and a sustainable future,” said Kioo Director, Kumar Krishnan.
IFC, a member of the World Bank Group, is the largest global development institution focused on the private sector in emerging markets.