TANZANIA – Glass bottle manufacturer Kioo Tanzania has secured a significant investment of US$60 million from the International Finance Corporation (IFC) and Standard Bank of South Africa.
This financing aims to bolster Kioo’s production capacity to meet the rising demand for domestically and regionally glass bottles and containers.
Under this partnership, IFC will provide a loan of up to US$45 million. In comparison, Standard Bank will contribute up to US$15 million, enabling Kioo to enhance its manufacturing capacity and tap into its export potential.
With a focus on sustainability, Kioo plans to increase its use of recycled glass in production, thereby reducing energy consumption and promoting eco-friendly practices.
Kioo’s expansion initiative aligns with meeting the growing demand for glass packaging while fostering sustainable economic growth in Tanzania.
By increasing the utilization of recycled materials, the company aims to lower energy consumption and minimize waste generation, contributing positively to the environment.
Kumar Krishnan, Director of Kioo, expressed gratitude for the ongoing partnership with IFC and highlighted the company’s commitment to sustainability and growth.
The expansion project is expected to create thousands of jobs directly within Kioo and indirectly along its supply chain, supporting the beverage industry’s growth across East and Central Africa.
Henrik Elschner Pedersen, Regional Industry Director for Manufacturing in Africa at IFC, emphasized the broader economic benefits of the investment.
He underscored the opportunity to generate employment and strengthen the manufacturing sector in East Africa by closing the supply gap.
With over six decades of experience, Kioo has established itself as a leader in glass container manufacturing. It serves over 100 customers in 17 countries across various beverage and food sectors.
This investment marks IFC’s third support to Kioo, reflecting its confidence in the company’s growth trajectory and its commitment to fostering sustainable development in Tanzania.
As Tanzania’s economy grows, investments like these play a crucial role in driving industrialization, job creation, and economic diversification.
With a robust investment portfolio in Tanzania, IFC remains committed to supporting initiatives that promote inclusive growth and sustainability in the country.
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