Kioo Glass K3

active

Kioo Limited (referred to as “Kioo” or the “Company”) is a leading food-grade glass containers manufacturing company in Tanzania. Currently, Kioo owns and operates a manufacturing facility located in the industrial area of Dar es Salam. The facility is equipped with two glass manufacturing lines, with a total production capacity of 126,000 MT/annum. IFC is considering a secured A loan of up to US$45 m to support the capacity expansion of Kioo by an additional 58,000 MT/annum (the “Project”). The Project will fund construction and installation of a third glass manufacturing line within the premises of the Dar es Salam facility and increase the Company’s logistics capacity. The Company owns a fleet of trucks to deliver finished products to the port and to its customers in Eastern, Central and Southern Africa by land. Kioo’s logistics fleet is managed by its subsidiary Equator Logistics Limited and currently consists of 60 flatbed trucks, which will be increased by 20 trucks as part of this Project.The Company uses silica sand as the main raw material for glass manufacturing. Kioo owns 280 acres of good quality silica sand deposits with a modern sand processing plant at Vianzi Site about 35 km south of Dar es Salaam along Kilwa Road. Around 72 acres has been used to date and 20 acres is unusable due to having red sand. Due to the future increase in capacity, additional sand mines are being considered. Additional 10 acres of land has been acquired and kept as reserve. The silica sand quarry is located within the nationally designated areas for sand mining and are not used for any other purpose. The acquisition is done on a ‘willing buyer willing seller’ basis.In 2017, IFC provided a corporate loan to Kioo to upgrade its existing equipment and increase its logistics fleet  (https://disclosures.ifc.org/project-detail/ESRS/38664/kioo-glass) and in 2020  a COVID facility funding  has been provided to the Company to mitigate the effects of the pandemic on Kioo’s operations (https://disclosures.ifc.org/project-detail/SII/44360/kioo-limited). The existing investment’s E&S performance has been satisfactory based on IFC’s supervision to date.