Wednesday, March 9, 2011

Nestle to expand its operation in Africa

Swiss-based nutrition and health company Nestle has announced new investment plans for Africa, in a bid to cement its presence and overall market share on the continent amid increasing competition.
According to Pierre Trouilhat, Nestle Equatorial Africa Region (EAR) chief executive, among countries earmarked for new investments this year are Kenya, Mozambique, Democratic Republic of Congo, Angola and Zimbabwe.The proposed investments are a follow-up to a US $162 million invested by the company in its EAR subsidiary last year.

In Kenya, Nestle’s EAR division will invest US $32.4 million in expanding its Nairobi-based factory and setting up a new production line to support its newly launched food service division, NestlĂ© Professional.The Kenya factory is expected to supply products to Uganda, Tanzania, Rwanda, Burundi, Eastern DRC, Malawi and Zambia.
Nestle’s Mozambique operation will benefit from a US $32.4 million investment that will be used to build a new factory and a distribution center, a move that is expected to create over 260 jobs by the end of 2012.The factory will support the increasing demand in Mozambique and neighboring countries for Nestle products such as coffee and other beverages, as well as culinary products.
Investment in Kinshasa 
In the DRC, Nestle will invest $43.2 million in its Kinshasa factory, whose first phase is already complete.The new facility will, among others, produce culinary and dairy products, coffee and other beverages.
Angola is expected to benefit from an investment worth $27 million to be used to set up a new factory.The new factory will enhance operations as Nestle is presently sourcing products for that market from South Africa, Portugal and Brazil, among other countries.
In Zimbabwe, Nestle will invest US $27 million for the expansion and upgrade of its Harare factory in order to boost its production capacity and to help supply other regional markets such as Zambia and Mozambique. Nestle established its EAR subsidiary in 2008 after recognizing the potential in this market.
NestlĂ© EAR oversees operations in 20 countries — Kenya, Angola, Burundi, Comoros, DRC, Djibouti, Eritrea, Ethiopia, Madagascar, Mauritius, Mozambique, Malawi, Republic of Congo, Rwanda, Seychelles, Somalia, Tanzania, Uganda, Zambia and Zimbabwe.
The region has a population of about 400 million people, with half of this market composed of adults under the age of 25, as well as an emerging middle-class with rising purchasing power.

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