Announcement of IFC Tanzanian Investment One Million Seventy-Five Thousand Million US Dollars for Soap Project on June 28, 1978

• International Finance Corporation £J£JUIIE.i·1d 1818 H Street. NW Washington. DC 20433, U.S.A. 202-393-6360 IFC Press Release No. 78/30 Wednesday, June 28, 1978 IFC Tanzanian Investment $1.75 Million for Soap Project The L.1temational Finance Corporation (IFC), an affiliate of the World Bank, is investing in a new 13,000 metric tons-a-year soap factory in southern Tanzania that will alleviate shortages of soap in the region, reduce distribution costs, provide more efficient and hygienic washing products to rural areas, and help develop one of the less advanced areas of the country. The IFC investment consists of $1,375,000 in loan and $375,000 equivalent in equity for Highland Soap and Allied Products Limited, a $7 million venture. High- land Soap will establish a factory with an annual capacity of 8,000 tons of laundry ~ soap and 5,000 tons of toilet soap and also will be equipped to mix and package up to 1,000 tons of detergent powder a year. The plant is scheduled to be completed at Mbeya late next year. The project is sponsored by Karm.ali Juma and Sons Limited, a privately-owned Tanzania company, which is investing $1,375,000 in the Company's capital and under- writing the offering of an additional $750,000 in equity to local investors and financial institutions. A $2,375,000 loan from the Tanzania Investment Bank Limited, the largest domestic development finance institution, and suppliers' credits of $750,000 complete the financial plan. The location of the project in the southern region will not only assure a source of industri.al jobs to a less developed area of the coun.try, but will also increase the availability of soap in the region, especially in rural areas where indigenous cleansing agents which can have harmful effects on skin and textiles are commonly used. Also transport costs from the factory will be lower than from existing soap manufacturers located in the north of the country. The project also supports the Government's policy of decentralizing industry • away from Dar-es-Salaam and Arusha, where most manufacturing is presently located • Karmali Juma and Sons is one of the largest privately-·owned enterprises in  • - 2 - Tanzania with investments in a number of fields, including a soap factory at Mwanza in the northwest. One of its subsidiaries, Industrial Management Services Limited, will implement the Highland Soap project and provide the project with management services. IFC took an active role in helping determine the project size, plant co~fig- uration and production mix. • (Any inquiries strictly relating to IFC's participation in this project should. be directed to the IFC Information Office, 1818 H Street, N.W., Washington, D.C. 20433, Telephone (202) 477~5340).