Tanzanian container glass manufacturer Kioo has obtained a $10 million loan from IFC, a member of the World Bank Group to help the company weather Covid-19 related challenges and to invest in more energy-efficient machinery.
IFC's $10 million loan will provide Kioo with working capital due to falling demand because of Covid-19 and associated measures to contain its spread, including the closure of bars and restaurants.
The loan to Kioo is part of IFC's $8 billion fast-track financing package to support existing clients and preserve jobs and economic activity during the pandemic.
Kumar Krishnan, General Manager at Kioo Limited, said: "Despite the effects of the pandemic, Kioo, with IFC's support, continues to pursue its long-term vision of continuous improvement.
“IFC's 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."
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 percent 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 agriculture, light manufacturing, and infrastructure sectors.