The private investment arm of the world bank, the International Finance Corporation (IFC), has loaned a KSh1.1 billion to Kioo Limited to help the company mitigate the challenges created by the Covid-19 pandemic.
Kioo limited is based in Tanzania and is the largest producer of glass bottles in East Africa. The company which mainly supplies glass bottles to beverages companies has been adversely affected by the closure of bars and restaurants in some East African countries as well as the restrictions on public gatherings.
The IFC loan will provide the company with much-needed capital to continue operating even in a challenging environment.
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Kioo limited will use the funds to pay employees and invest in energy-efficient machinery to reduce its carbon emissions.
Kioo limited supplies glass bottles to more than 12 African countries including some island nations in the Indian Ocean. The company is also keen to protect the environment and aims to install energy-efficient machinery in its Dar es Salaam factory in order to cut down on carbon emissions.
IFC has been supporting Small and Medium Enterprises in East African through loans and equity investments.
In addition, the financial organization has over $5 billion invested in African businesses and financial institutions.