Tanzania: IFC Loans Kioo $10m for Covid-19, Jobs, Clean Energy

Tanzania: IFC Loans Kioo $10m for Covid-19, Jobs, Clean Energy

THE International Finance Corporation (IFC), which is a member of the World Bank Group, has issued loan financing to Kioo Limited to help the company weather Covid-19-related challenges, protect jobs, and invest in energy-efficient machinery to reduce its carbon footprint.

IFC’s $10m loan will provide Kioo Limited, the East Africa’s largest producer of glass bottles, 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.

Kioo Limited General Manager Kumar Krishnan said despite the effects of the pandemic, Kioo, with IFC’s support, continued pursuing its long-term vision of continuous improvement.

“IFC 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.” The loan to Kioo is part of IFC’s $8bn fast-track financing package, announced in March last year to support existing clients and preserve jobs and economic activity during the Covid-19 pandemic.

The IFC Resident Representative for Tanzania and Burundi Frank Ajilore said supporting businesses with financing was 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 cash flow and lay a foundation for a stronger future,” he said.

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 per cent 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 agricultural, light manufacturing, and infrastructural sectors.

Kioo has been in existence since 1963. It is the only glass container manufacturer in Tanzania and the largest in eastern and central Africa. Its plant and head office are in Dar es Salaam, Tanzania. Kioo sells bottles and jars in flint, amber and green colours to producers of carbonated soft drinks, alcoholic beverages and foods. IFC as a member of the World Bank Group is the largest global development institution focused on the private sector in emerging markets.

It works with more than 100 countries, using our capital, expertise, and influence to create markets and opportunities in developing countries.

In the 2020 fiscal year, we invested $22bn in private companies and financial institutions in developing countries, leveraging the power of the private sector to end extreme poverty and boost shared prosperity

Source: Daily News

ENERGY GHANA MAGAZINE

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