Press Releases
print

IFC TO INVEST US$24.4 MILLION IN RECENTLY PRIVATIZED TANZANIAN BREWERY


Amy Conran
(202) 473-9119
Eduardo Abello
(202) 473-6817


WASHINGTON, D.C., May 10 -- The International Finance Corporation (IFC) has signed agreements to provide a loan of US$18.4 million and an equity investment of US$6 million for Tanzania Breweries Limited to help the company increase its output capacity and to meet international health, safety, and environmental standards. Tanzania Breweries, which produces beer primarily for the domestic market, was one of the first companies to be privatized under the Tanzanian Government's economic reform program. IFC's financing will be used to build a new brewery in Mwanza and to rehabilitate and upgrade the company's breweries in Dar es Salaam and Arusha. The existing plants have developed environmental clean-up plans to bring them up to international standards, and the company has introduced a technical and safety training program. In addition, Tanzania Breweries is in the process of establishing a new health clinic for its employees. Total project cost is estimated at US$61.1 million. The IFC financing package consists
of a US$11 million loan for IFC's own account and a US$7.4 million loan syndicated with international financial institutions as participants in IFC's loan. Participations were taken by PROPARCO of France (the private sector financing subsidiary of Caisse Française de Développement), the Netherlands Development Finance Company (FMO), and Dresdner Bank Luxembourg S.A. These institutions are also providing equity financing to Tanzania Breweries. Bevman Services AG, a subsidiary of South African Breweries Ltd., will be the technical partner and manager. The South African Breweries group is the first South African company to make a large investment in Tanzania. IFC is a member of the World Bank Group and is the largest multilateral source of equity and loan financing for private sector projects in developing countries.