KIOO Limited, a prominent glass packaging manufacturer based in Dar es Salaam, has secured a significant investment of $60 million (equivalent to 15.6 billion Tanzanian shillings) to expand its production capabilities and meet rising domestic and regional demand. The funding has been provided by the International Finance Corporation (IFC), a member of the World Bank Group, and Standard Bank of South Africa, with IFC contributing $45 million and Standard Bank $15 million.
The investment aims to enhance KIOO Limited's production capacity to cater to the growing need for glass bottles and containers across East and Central Africa. Minister for Industry and Trade, Dr. Ashatu Kijaji, highlighted the economic benefits of the expansion, noting that it will create thousands of direct and indirect jobs, with a significant portion of the products intended for export.
"We appreciate the efforts of IFC to support private sector industries in the country like KIOO, and we look forward to more such collaborations in other sectors as well," Dr. Kijaji stated during the loan signing ceremony.
The expansion will enable KIOO Limited to increase its use of recycled glass in its production process, thereby reducing the factory’s energy consumption. Currently, 40% of KIOO’s glass bottles are made from recycled materials. The company is one of the largest manufacturers of container glass for packaging soft drinks, beer, alcohol, and food in East and Central Africa.
The beverage sector in East and Central Africa is projected to grow by 10% over the next five years. KIOO’s expansion is strategically positioned to meet this anticipated demand, addressing the current 40% supply gap that is met through imports.
Kumar Krishnan, Managing Director of KIOO Limited, emphasized the company’s role as the largest glass manufacturer in the region and its status as a preferred supplier. "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 a sustainable future," Krishnan remarked.
Henrik Elschner Pedersen, Regional Industry Director in Africa for Manufacturing, Agribusiness, and Services at IFC, noted that this marks the third time IFC has supported KIOO’s expansion efforts. "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," Pedersen said.
With over six decades of experience in manufacturing lightweight glass containers, KIOO Limited exports to 17 countries and utilizes locally sourced raw materials such as sand, limestone, feldspar, and imported soda ash.
This substantial investment is expected to significantly bolster KIOO Limited’s production capabilities, contributing to the region’s economic growth and sustainability