The global giant in soft-drink manufacturing has announced plans to invest $300 million in Ethiopia as part of its expansion plans. The plan will be set in motion by the establishment of a new plant at a cost of $70 million.
The $70 million (2 billion birr) plant will become the largest in Ethiopia, with a capacity of producing 70,000 cases per day. Construction will be done on a site stretching 14 hectares of land in Sebeta. This is a massive boost for Ethiopia's business climate as Coca-Cola will be running three plants in the country, something that will improve employment.
Such investment on this huge magnitude will be a launchpad for more investment into the East African country, according to Burno Pietracci, general manager of the East and Central African Franchise. By taking recognizance of this big investment deal, other foreign investors will be attracted to the country too.
Coca-Cola's 60-year history in the Ethiopian beverage market is a good track record for further investments.
“Coca-Cola has been present in Ethiopia for 60 years and we are proud to be associated with its growth.
“We plan to invest further and have also set some ambitious targets and goals around empowering women and youth, water conservation and access and management of plastic waste,” said Phillipine Mtikitiki General Manager for East & Central Africa.
Investment from big multinationals is sometimes viewed with skepticism, especially when it comes to whether the corporations are paying enough taxes, and whether the locals will directly be benefiting from the investments. These corporations have often come under fire for being attracted to Africa and other developing nations because of cheap labour.
Since this is a five-year plan, people will want to see results on the successes of these investments.
Header image credit - Elmi Olindo