IFC and Standard Bank of South Africa support Kioo Limited – Tanzania to produce sustainable glass containers

TANZANIA: THE International Finance Corporation (IFC) and Standard Bank of South Africa are supporting the expansion of Tanzanian glass manufacturer Kioo to meet increasing domestic and regional demand for glass bottles and containers.

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 $45 million and Standard Bank will provide upto $15 million to help Kioo grow its manufacturing capacity and increase its exports potential. 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 and Central 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 longstanding glassmaking and export capabilities.

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By substituting imported glass with locally manufactured, cost-efficient products, the project will foster the growth of the region’s beverage industry. Kioo will utilize locally available raw materials and energy and produce a value added product of world standards for export to the region.

“We appreciate the efforts of IFC to support private sector industries in Tanzania like Kioo and we look forward to more such collaborations in other sectors too” said Tanzanian Minister for Industry and Trade Hon. Dr. Ashatu Kijaji during the signing ceremony.

“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.

“There is a clear opportunity in East Africa to create jobs by closing the supply gap in the manufacturing sector,” said Henrik Elschner Pedersen, Regional Industry Director for manufacturing in Africa at IFC. “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.”

This is the third time that IFC has supported Kioo, with previous loans helping the company expand, as well as maintain and upgrade its equipment. As of the end of FY23, IFC had a $442.1 million investment portfolio and an advisory portfolio of $11.9 million in Tanzania. In FY23 alone, IFC new investments totaled $115 million.

Kioo Limited has been in existence since 1963. With over 6 decades of experience and excellence in manufacturing, logistics and services, Kioo meets if not exceeds, international standards in manufacturing, quality and light-weighting of glass containers.

Kioo currently serves 100 plus customers in 17 countries in all beverage and food sectors like Beer, Soft Drinks and Food Jars, supplying to most of the major global beverage giants in the region.