Announcement of IFC Assists Zambia Private Sector One Million US Dollars for Packaging Venture on June 11, 1975

, . . \:1F·O.rl',1MMEDl,ATE ~/'':.~ ,.).' .,.. - ..RELEAS.E. . International Finance Corporation 1818 H Street, N.W. Washington, D.C. 20433, U.S.A. 202-393-6360 IFC Press Release No. 75/9 Wednesday, June 11, 1975 IFC Assists Zambia Private Sector $1 Million for Packaging Venture The International Finance Corporation (IFC), an affiliate of the World Bank, is joining with a Zambian entrepreneur and a technical sponsor from Pakistan to establish a flexible packaging plant at Ndola, Zambia. The $1 million IFC investment is being made in Century Packages Limited, a $2.6 million venture to produce 900 metric tons a year of printed wax wrappers, cellophane wrappers, and polyethylene film and bags for use by Zambian food processors. • The sponsors of the project are Century Hold1ngs Limited of Zambia and Packages Limited of Pakistan. a leading businessman in Zambia. Century Holdings is owned by Mr. Emmanuel Kasonde, Packages Limited is an experienced pulp, paper and packaging materials producer in which IFC invested a decade ago to help finance a major expansion of its Lahore plant. At that time a recipient of technical assistance from abroad, Packages Ltd. is now transferring technology to this new enterprise in Zambia. The IFC investment in Century Packages consists of $260,000 in equity and $775,000 in loan. Century Holdings is investing $601,400 in equity; Zambia's State Finance and Development Corporation Limited, $100,000; and Packages Limited, $77,500. A $775 ,.000 loan by the Development Bank of Zambia completes the financing. The project aims at filling a gap in Zambia's paper conversion industry by manufacturing printed wrapping materials that are at present imported by food processors. Production will replace yearly imports of $3 million, resulting in net foreign exchange savings of $300,000 annually. The project is also expected to reduce transportation costs and delivery time and produce packaging materials more closely suited to domestic needs • •  - 2 - IFC played a major role tn developing the venture as part of its efforts to promote new investments. It assisted in bringing the sponsors together, in organizing and financing market and f~asibility studies, in developing the financial plan and in making arrangements for project imple- mentation and management. (Any inquiries strictly relating to IFC's participation in this project should be directed to the IFC Business Relations Unit, 1818 H St., N.W., Washington, D.C. 20433, Telephone (202) 477-2355). • •