World Bank’s private sector lending arm has granted $10 million to Kioo Ltd to invest in energy efficient machinery to reduce its carbon footprint in Tanzania.
The International Finance Corporation advanced the loan to the Tanzanian glass manufacturer to weather Covid-19 related challenges and invest in the latest modern energy-efficient machinery.
IFC said the loan will provide Kioo with working capital as the region's beverage industry faces falling demand due to measures put in place to contain the spread of Covid-19, like closure of bars and restaurants.
“The loan to Kioo is part of IFC's $8 billion fast-track package announced in March 2020 to support existing clients, preserve jobs and economic activity during the Covid-19 pandemic,” said IFC and Kioo in a joint press release.
Kioo employs 600 people and supplies glass containers to 12 countries in Africa and the Indian Ocean.
Glass containers account for 90 percent of beverage packaging in sub-Saharan Africa.
Frank Ajilore, the IFC resident representative for Tanzania and Burundi, said supporting businesses with financing is a major part of World Bank’s private sector lending arm strategy to protect jobs and sustain economic .
"Our investment and partnership with Kioo will help strengthen the company's cashflow and lay a foundation for a stronger future," he said.
Kioo has committed to reducing its environmental impact by installing energy-efficient equipment and production systems at its factory in Dar es Salaam.
IFC has invested over $300 million in Tanzania in the agriculture, light manufacturing, and infrastructure sectors since 2015.
Kioo general manager Kumar Krishnan, said the firm continues to pursue its long-term vision of continuous improvement with IFC’s support despite the effects of the Covid-19 pandemic.
“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," he said.
Kioo was established in 1963 and is the only glass container manufacturer in Tanzania.