The Coca-Cola system, consisting of The Coca-Cola Company and its authorised bottler Coca-Cola Beverages Africa, has announced its intention to grow its investment in Kenya by up to $175 million over the next five years, should the business achieve its anticipated growth targets in the country.
Hosting Kenyan President H.E. Dr William Ruto at The Coca-Cola Company’s headquarters in Atlanta, Sunil Gupta, CEO of Coca-Cola Beverages Africa, said, “The Coca-Cola system has been an integral part of Kenya’s landscape for more than 75 years. Today, we are excited to announce our intention to strengthen this legacy through a substantial investment.”
“This investment is aimed at accelerating the Coca-Cola system’s capacity and capability expansion over the next five years. Our decision to invest underscores our belief in the long-term potential of Kenya’s economy,” Gupta said.
Luisa Ortega, President of The Coca-Cola Company’s Africa Operating Unit, emphasized the importance of collaboration with the government to create a stable policy environment. “The Coca-Cola system has been part of communities in Kenya for more than seven decades. We are excited to continue growing our business and supporting communities across Kenya for many years to come,” said Ortega.
The Coca-Cola system has a rich legacy of refreshing Africa and making a difference in the East Africa region, where it is a major employer, directly employing 10,000 people.
The Coca-Cola system also works with over 500,000 Micro, Small and Medium Enterprises across the region, giving the company a direct connection to the experiences shared by many businesses in Kenya and across the East African region.
“Our value chain supports livelihoods for over a million people in distribution, sales and other roles,” said Gupta. “We source close to 8,000 metric tons of mango puree from East African farmers. We believe in the region’s potential and its ability to achieve significant growth through collaboration between public and private sectors. Our business in Kenya is centered on a local approach – we hire locally, produce locally, distribute locally and source locally.”
“We are optimistic and fully committed to Kenya’s future. We foresee great social and economic advancement, and this is why we continue to invest in our Kenyan business as well as community programs that help strengthen Kenya’s prosperity,” Ortega concluded.
Moonflower
Domestic inflation: The highest inflation rate ever recorded in South Africa was in January 1986, at 20.7%. Some of you may remember those bad days where each wag of P.W. Botha’s finger put an extra percentile to the inflation rate. That year the average inflation rate was 18.7%. During the 2008 financial crisis, South Africa’s inflation rate was 11.5%. In July 2018, the latest official monthly inflation rate was 5.1%. With inflation, this low, production cost increases can be expected to remain low, despite the large hikes in the petrol price. This reduces the perceived risk of starting a business in South Africa. Compared to Venezuela (200 000% inflation rate) we are not doing too badly!