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IFC TO INVEST IN SWAZI PAPER MILL


Amy Conran
(202) 473-9119


WASHINGTON, D.C., March 14 -- The International Finance Corporation (IFC) signed an agreement today to provide US$5 million to Swazi Paper Mills, Ltd. to help the company increase its paper production and broaden its product line. IFC's financing will allow Swazi Paper Mills, Ltd. to install a paper machine and ancillary equipment. Total project cost is estimated at US$11.9 million. The project will increase the use of recycled fiber and will comply fully with World Bank environmental policies and guidelines. Swazi Paper Mills Ltd., established in 1986, is the only manufacturer of kraft papers (including envelope, bag, wrapping and book cover papers) and tissue products in Swaziland. It is the largest privately owned company in Swaziland, employing 900 people, and the present expansion program will enable the company to add 60 employees. According to Tei Mante, Director of IFC's Africa Department, "the project fits well into IFC's strategy for Swaziland by stimulating the growth of the private sector through
the promotion of labor intensive industries." 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.