Addis Abeba, February 13/2029 – Standard Bank has successfully arranged and structured USD50 million in financing facilities for Coca-Cola Beverages Africa (CCBA) to support its expansion strategy in Ethiopia over the next five years.
Coca-Cola Company holds a majority stake in CCBA, which is the largest
bottler of Coca-Cola beverages in Africa – serving 13 countries on the
continent – and eighth largest in the world by
Bank, Africa’s largest bank by assets, “started its journey with CCBA a
few years back and, as the relationship developed, has established
itself as a primary banker to CCBA across key
Africa geographies in which it operates. We have demonstrated the
importance of our partnership with CCBA by offering unique solutions to
key concerns, of which this transaction is a prime example,” says Simon
Reeves, Standard Bank’s relationship manager for
closely aligns with our key business imperative of driving sustainable
growth across the continent,” says Stephen Lovell, Head, Corporate
Financing Solutions, Africa Regions for Standard
Bank. “Standard Bank’s position as sole funder to the deal demonstrates
the bank’s ability to provide innovative financing solutions, leverage
the strength of its balance sheet and Africa expertise to bring deals
like this to life.”
With a presence in markets that match CCBA’s operations in Africa and having established a representative office in Addis Abeba in 2015, Standard Bank was able to provide insight into the local market that best supported CCBA’s growth ambitions in Ethiopia – a high growth region for Coca-Cola.
boasts the second-largest population on the African continent. While
consumption of soft drinks is low compared to major markets, demand is
expected to swell as the middle class rises
and consumers are empowered with spend.
bottling company, East Africa Bottling S.C, has already invested USD 70
million in a new plant that is set to become its largest in Ethiopia
with a manufacturing capability of 70 000 cases
by Fitch Solutions shows that the global soft drinks industry is worth
USD 295 billion and is expected to grow to USD 377 billion by 2023.
Africa only accounts for 3% of this total value,
despite representing 16% of the global population, which is expected to
rise 25% by 2050.
Mr Lovell adds that Standard Bank has invested heavily in the consumer sector with a specialized team that is capable of supporting multinationals like Coca-Cola to capitalist on the consumer opportunity.
According to the 2018 UNCTAD World Investment Report, Ethiopia was the second-largest recipient of Foreign Direct Investment (FDI). Standard Bank’s Soft Drinks in East Africa report for 2019 shows that Ethiopia became the fastest-growing economy in 2017 with consumer-packaged goods and retail making up a quarter of FDI projects.
“The CCBA deal holds significance as new FDI will be realized for Ethiopia, set to positively influence the country’s economic trajectory,” says Taitu Wondwosen, Head of Ethiopia for Standard Bank Group.
Ethiopia’s economy continues to record strong economic growth, job
creation through private sector reform remains a key imperative.
expansion in the country complements the government’s plans. The new
bottling capacity that is earmarked for the country will continue to add
jobs to those that have already been created
by CCBA in Ethiopia and are a vital part of our overall investment
ambitions in Ethiopia,” says Daryl Wilson, Managing Director of CCBA
Ethiopia. “This is a first for CCBA and Standard Bank, who understood
our need and were able to find an innovative solution
to solve it. The funding from Standard Bank is key to our growth
ambitions in Ethiopia.”
entered Ethiopia six decades ago and has since created about 2100
direct and more than 50,000 indirect jobs in the country.
“Standard Bank is committed to supporting our clients in accessing opportunities in Ethiopia, and more broadly across the continent,” says Ms Wondwosen. “Our support for CCBA’s vision of growing its bottling business responsibly across the continent demonstrates what we are doing to uphold this commitment and support our clients in Ethiopia”.
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