What  million extra capital for Tanzania glass firm means

What $60 million extra capital for Tanzania glass firm means

Dar es Salaam. Tanzanian glass bottle manufacturer Kioo Limited has received its much-needed boost, thanks to $60 million (about Sh156 billion) capital injection from the International Finance Corporation (IFC) and Standard Bank of South Africa.

Kioo Limited said in a statement on Sunday that the financing is meant to support the expansion of its manufacturing capacity to meet increasing domestic and regional demand for glass bottles and containers.

Under the partnership arrangement, IFC will provide a loan of up to $45 million while and Standard Bank will provide up to $15 million to help Kioo grow its manufacturing capacity and increase its exports potential.

 The project, which is expected to create thousands of jobs and contribute to economic growth in Tanzania, will also increase the amount of recycled glass that Kioo uses in its production process, helping to reduce energy consumption.

 “The project will help Kioo meet growing demand in its regional markets and generate thousands of jobs directly and indirectly along its supply chain,” the statement reads.

 A member of the World Bank Group, the IFC offers investment, advisory, and asset-management services to encourage private-sector development in less developed countries.

 On the other hand, with its headquarters in Johannesburg, Standard Bank Group markets itself as Africa’s largest bank, with a 161-year track record of operational excellence and value.

 The lender also operations in 20 sub-Saharan African countries, including in Tanzania.

The deal between the two financing institutions come at a time when the beverage sector in East and Central Africa – which is Kioo’s primary market for refillable glass containers – is projected to grow up to 10 percent per year over the next five years.

Nonetheless, a supply gap in the region means that about 40 percent of the demand is met by imports.

 Tanzania is one of the few countries in East Africa with longstanding glassmaking and export capabilities.

 The growth in Kioo’s production capacity means that the East and Central Africa region will substitute imported glass with locally manufactured ones.

“This cost-efficient products, the project will foster the growth of the region’s beverage industry.

 Kioo will utilise locally available raw materials and energy and produce a value added product of world standards for export to the region,” the statement reads.

Witnessing the signing of the financing agreement was the Minister for Industry and Trade, Dr Ashatu Kijaji, who appreciated the efforts of IFC to support private sector industries in Tanzania.

 According to Kioo director Kumar Krishnan, the company was already the largest glass manufacturer in the region and has become a supplier of choice to many of its customers.

“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 Africa and a sustainable future,” he said.

 The regional industry director for manufacturing in Africa at IFC, Mr Henrik Pedersen, said there is a clear opportunity in East Africa to create jobs by closing the supply gap in the manufacturing sector.

 “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,” he said.

 This is the third time that IFC has supported Kioo, with previous loans helping the company expand, as well as maintain and upgrade its equipment.

 As of the end of the year 2023, IFC had a $442.1 million investment portfolio and an advisory portfolio of $11.9 million in Tanzania.

 In 2023 alone, IFC new investments totalled $115 million.

 Kioo Limited has been in existence since 1963 within which period, it has acquired enough experience and excellence in manufacturing, logistics and services.

 Currently, Kioo serves 100 plus customers in 17 countries in all beverage and food sectors like beer, soft drinks and food jars, supplying to most of the major global beverage giants in the region.

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Tanzania Confirms Outbreak of Marburg Virus Disease
Tanzania Foreign Investment News
Chief Editor

Tanzania Confirms Outbreak of Marburg Virus Disease

Dodoma — Tanzania today confirmed an outbreak of Marburg virus disease in the northwestern Kagera region after one case tested positive for the virus following investigations and laboratory analysis of suspected cases of the disease.

President of the Republic of Tanzania, Her Excellency Samia Suluhu Hassan, made the announcement during a press briefing alongside World Health Organization (WHO) Director-General, Dr Tedros Adhanom Ghebreyesus, in the country’s administrative capital Dodoma.

“Laboratory tests conducted in Kabaile Mobile Laboratory in Kagera and later confirmed in Dar es Salaam identified one patient as being infected with the Marburg virus. Fortunately, the remaining suspected patients tested negative,” the president said. “We have demonstrated in the past our ability to contain a similar outbreak and are determined to do the same this time around.”

A total of 25 suspected cases have been reported as of 20 January 2025, all of whom have tested negative and are currently under close follow-up, the president said. The cases have been reported in Biharamulo and Muleba districts in Kagera.

“We have resolved to reassure the general public in Tanzania and the international community as a whole of our collective determination to address the global health challenges, including the Marburg virus disease,” said H.E President Hassan.

WHO is supporting Tanzanian health authorities to enhance key outbreak control measures including disease surveillance, testing, treatment, infection prevention and control, case management, as well as increasing public awareness among communities to prevent further spread of the virus.

“WHO, working with its partners, is committed to supporting the government of Tanzania to bring the outbreak under control as soon as possible, and to build a healthier, safer, fairer future for all the people of Tanzania,” said Dr Tedros. “Now is a time for collaboration, and commitment, to protecting the health of all people in Tanzania, and the region, from the risks posed by this disease.”

Marburg virus disease is highly virulent and causes haemorrhagic fever. It belongs to the same family as the virus that causes Ebola virus disease. Illness caused by Marburg virus begins abruptly. Patients present with high fever, severe headache and severe malaise. They may develop severe haemorrhagic symptoms within seven days.

“The declaration by the president and the measures being taken by the government are crucial in addressing the threat of this disease at the local and national levels as well as preventing potential cross-border spread,” said Dr Matshidiso Moeti, WHO Regional Director for Africa. “Our priority is to support the government to rapidly scale up measures to effectively respond to this outbreak and safeguard the health of the population,”

Tanzania previously reported an outbreak of Marburg in March 2023 – the country’s first – in Kagera region, in which a total of nine cases (eight confirmed and one probable) and six deaths were reported, with a case fatality ratio of 67%.

In the African region, previous outbreaks and sporadic cases have been reported in Angola, the Democratic Republic of the Congo, Ghana, Kenya, Equatorial Guinea, Rwanda, South Africa and Uganda.

Marburg virus is transmitted to people from fruit bats and spreads among humans through direct contact with the bodily fluids of infected people, surfaces and materials. Although several promising candidate medical countermeasures are currently undergoing clinical trials, there is no licensed treatment or vaccine for effective management or prevention of Marburg virus disease. However, early access to treatment and supportive care – rehydration with oral or intravenous fluids – and treatment of specific symptoms, improve survival.

Source: allafrica.com

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