Washington, DC, June 7, 2005—
The International Finance Corporation, the private sector arm of the World Bank Group, will lend $10 million to finance the expansion of Bonite Bottlers Limited, which holds the franchise to bottle and distribute Coca-Cola’s carbonated soft drinks and bottled water products in northern Tanzania.
IFC’s financing will support a $20.6 million investment program to upgrade and expand the company’s production plant in Moshi, in northern Tanzania. It will also help the company strengthen its presence in the region by supplying a wider range of products through an improved network and more efficient distribution logistics. Bonite Bottlers is a member of the Tanzanian-owned IPP Group.
The company’s expansion project will create 50 permanent and 100 temporary jobs. It will further support employment and the development of small and medium enterprises as part of the company’s distribution and retailing network. IFC’s participation will also strengthen Bonite Bottlers’ environmental safeguards and corporate social activities.
“IFC’s long-term financing will support Bonite Bottlers’ expansion plans and further its growth potential,” said Jean-Paul Pinard, director of IFC's Agribusiness Department. “IFC’s support is a sign of our confidence in the future of Tanzania’s food and beverages sector,” he added.
Richard Ranken, director of IFC’s Sub-Saharan Africa Department noted, “This is a good example of a successful partnership between a first-class African private sector group and a global company. We hope that our investment will serve as a catalyst for other African and international companies with which we want to build long-term partnerships through investments and technical assistance.”
IFC’s mission(
www.ifc.org
) is to promote sustainable private sector investment in emerging economies, helping to reduce poverty and improve people’s lives. IFC finances private sector investments in emerging economies, mobilizes capital in the international financial markets, helps clients improve social and environmental sustainability, and provides technical assistance and advice to governments and businesses. From its founding in 1956 through FY04, IFC has committed more than $44 billion of its own funds and arranged $23 billion in syndications for 3,143 companies in 140 developing countries. IFC’s worldwide committed portfolio as of FY04 was $17.9 billion for its own account and $5.5 billion held for participants in loan syndications.
