TANZANIA—Kioo Tanzania, a glass bottle manufacturer, has secured US$60 million from the International Finance Corporation (IFC) and Standard Bank of South Africa to support its expansion and meet the increasing domestic and regional demand for glass bottles and containers.
Under the partnership, IFC will provide a loan of up to US$45 million. Standard Bank will provide up to US$15 million to help Kioo grow its manufacturing capacity and increase its export potential.
Kioo will increase the amount of recycled glass it uses in its production process, helping to reduce energy consumption.
This collaboration aims to meet the growing domestic and regional demand for glass bottles and containers while promoting sustainable practices and economic growth in Tanzania.
One key environmental initiative involves increasing the use of recycled glass in the production process, which will help lower energy consumption and reduce waste.
“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,” Kioo’s Director, Kumar Krishnan, said.
“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.”
The project is poised to create thousands of jobs directly within Kioo and indirectly along its supply chain. The East African beverage sector, Kioo’s primary market for refillable glass containers, is projected to grow by up to 10 percent annually over the next five years.
Despite this growth, the region faces a supply gap, with about 40 percent of demand being met through imports.
By boosting local production, Kioo aims to substitute imported glass with locally manufactured products, fostering regional industry growth.
Henrik Elschner Pedersen, Regional Industry Director for Manufacturing in Africa at IFC, emphasized the broader economic benefits: “There is a clear opportunity in East Africa to create jobs by closing the supply gap in the manufacturing sector.”
“Our investment in Kioo will not only directly support this through the company’s increased capacity but will also help strengthen the glass value chain across the region.”
Kioo Limited has existed since 1963. With over six decades of experience and excellence in manufacturing, logistics, and services, Kioo meets, if not exceeds, international standards in glass container manufacturing, quality, and lightweight.
Kioo currently serves more than 100 customers in 17 countries in all beverage and food sectors, including Beer, Soft Drinks, and Food Jars, supplying most of the major global beverage giants in the region.
This investment marks the third time IFC has supported Kioo. Previous loans have enabled the company to expand and upgrade its equipment.
As of the end of FY23, IFC had an investment portfolio of US$442.1 million and an advisory portfolio of US$11.9 million in Tanzania. In FY23 alone, new investments by IFC in Tanzania totaled US$115 million.
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