Jacques Vermeulen, Managing Director of
“There is always something new out of Africa,” the ancient Greeks used to say. Back then, the proverb referred to the continent’s extraordinary diversity, but today it can be applied to the accelerating pace of change as Africa begins to reshape its economic destiny.
It’s an exciting time to be an African business. This is a youthful continent, experiencing the most rapid urbanisation rate in the world and, by 2034, it is expected to boast a larger working-age population than either China or India.
Accelerating technological change and rapid adoption of mobile telephony are helping to unlock new opportunities for consumers and businesses, while governments are increasingly conscious of the legislative and policy levers that must be activated to accelerate economic development.
For a business to compete in this environment demands agility and relentless innovation – to deliver new products that meet the evolving expectations of consumers, new skills to meet the challenges of the fourth industrial revolution, new processes to adapt to new technology and the fast-changing operating environment, and, in the case of
From a product portfolio point of view, CCBA has 508 different products in the nine African markets where CCBA’s International Division operates – Kenya, Uganda, Ethiopia, Tanzania, Mozambique, Namibia and Ghana as well as the islands of Comoros and Mayotte. That is 65 percent more than we had last year. Some of them are old favourites,
Fundamental to our innovation is increased investment and local sourcing of raw products. As an example, in Kenya, we are already sourcing local fruit pulp for the manufacture of Minute Maid Mango.
We continue to invest across all our markets in products that respond to changing consumer tastes and preferences, as we seek to increasingly draw on local inputs as part of our commitment to source locally some of the ingredients we currently import. We have an ambitious target to substantially increase our local sourcing by 2022.
This is reflective of our belief that the growth of our business is directly linked to the development of the African economy.
As we invest in local production capacity, we also invest in our people, building the skills of our workforce to meet not only the requirements of our business, but the broader economy too, thus enhancing the productivity and growth potential of the continent itself.
Before we put in a new line of products, our employees spend several months in the manufacturer’s facility in the country of origin, fine-tuning the skills needed to bring those products to market to the high-quality standards we set.
Some of this involves reducing sugar in our drinks, giving consumers options of diet, light or even zero-sugar drinks. It also involves introducing new packaging which reduces portions as we combine scientific research with the changing tastes and dietary preferences of our consumers.
Innovation takes courage and when we succeed, everyone succeeds. In Ethiopia, we built a factory in a location where there was no other development, but once other companies saw what we had done, they started looking for investment opportunities themselves. Today, the plant is run by local employees, all of whom are under the age of 30.
Along with the many opportunities on offer, Africa presents unique challenges. In the vast, yet sparsely populated Namibia, we had to completely revamp our coastal route to market to ensure our products were always available and perfectly chilled. We closed an old depot and replaced it with new Official
Many of our partner businesses – especially the retailers – now employ other people, having benefited from the many mentorship and small business programmes we run. We are determined to turn survivalist businesses into sustainable, growing businesses.
It is part of our sustainability strategy that the growth of our business should be underpinned by growth of the communities who buy our products.
We run a range of community empowerment and environmental stewardship programmes – with a special focus on women and youth development.
We also pay a considerable amount of tax, contributing significantly to the financial wellbeing of each country where we trade.
We share the aspirations of Africans and their governments. We can all agree that communities grow where enterprise flourishes. Economies succeed on the back of innovative thinking. And everyone benefits when companies do what they know best and keep their focus on growth for all. We want to help build a better Africa, and we have the will and the imagination to help make this happen.
Jacques Vermeulen is managing director of Coca Cola Beverages Africa International Division.
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