Kioo receives $60 million loan for glass facility in Tanzania

Tanzanian glass manufacturer Kioo will expand its production facilities with a $60 million loan.

The expansion will meet growing national and regional demand for glass bottles and containers.

The International Finance Corporation (IFC) will provide a loan of up to $45 million to help Kioo increase its manufacturing capacity and reduce its environmental impact.

The loan will allow Kioo to increase the amount of recycled glass it uses in its production process, helping to reduce energy consumption.

The manufacturer will also receive $15 million from Standard Bank of South Africa.

The project will help Kioo meet growing demand in its regional markets and generate thousands of jobs directly and indirectly along its supply chain.

Kumar Krishnan, Director, Kioo, said: “Kioo is already the largest glass manufacturer in the region and has become the supplier of choice for many of its customers.

“The new expansion will further drive the growth of the beverage industry in East and Central Africa. “This investment is a testament to the group’s continued belief in Africa and a sustainable future.”

The beverage sector in East Africa, Kioo’s main market for refillable glass containers, is expected to grow up to 10% annually over the next five years.

However, a supply gap in the region means that around 40% of demand is met by imports.

Tanzania is one of the few East African countries with long-standing glass manufacturing and export capabilities.

By replacing imported glass with cost-effective locally manufactured products, the project will foster the growth of the region’s beverage industry.