Standard Bank enables Coca-Cola Beverages Africa in launching fifth plant in Ethiopia
Standard Bank’s comprehensive funding solution has facilitated the opening of Coca-Cola Beverages Africa’s (CCBA) new bottling plant in Ethiopia, which is set to bring further impetus to the growth of the country’s manufacturing capacity.
The plant is located on a 14.4 hectares (ha) plot of land in Sebeta, a town located near the capital Addis Ababa, and will enable the expanded production of locally made beverage products.
“Ethiopia is an economy with massive economic potential and long-term growth prospects,” says Taitu Wondwosen, Head Standard Bank Representative Office. “Through our strong sector and investment banking capabilities, as well as a geographic presence in 20 countries and intrinsic understanding of the continent, Standard Bank is well positioned to continue partnering with our clients such as CCBA to unlock expansion in critical sectors such as manufacturing.”
“In addition to providing financing to this deal, we have established ourselves as the primary banker to CCBA across key African countries in which the bottler operates, a strong partnership that has been key in proving insights into the high-growth Ethiopian market to offer a unique solution,” says Stephen Lovell, Head Corporate Financing Solutions.
Ethiopia is one of CCBA’s largest and fastest growing markets across its footprint in 14 African countries, with five plants in Addis Ababa, Bahir Dar, Dire Dawa, Ambo (Ambo Mineral Water), and the latest being the Sebeta factory. With the addition of Sebeta, CCBA in Ethiopia has more than 3500 direct employees working in these factories with total production capacity exceeding 100 million cases a year.
“This investment and facilitation support from Standard Bank will be critical in growing our manufacturing capacity in Ethiopia and further support the downstream economy of wholesalers and retailers,” says Daryl Wilson, MD CCBA in Ethiopia. “Through our growing range of products, we look forward to giving consumers more beverage options as well as enhancing industries like food and catering, and tourism in the country.”
CCBA in Ethiopia produces a range of drinks, including juices, water, sparkling drinks and energy drinks. The launch of the Sebeta plant will enable the production of Minute Maid Juice in mango, orange, lemonade, berry, and apple flavours. These and all other products remain a direct import substitute and contribute to the country’s GDP growth.
Ethiopia’s economy grew at a rate averaging 9.4% a year between 2010 and 2020, only slowing to 6.1% in 2020, due to the Covid-19 pandemic.
The transaction is the latest in a growing partnership, with Standard Bank having supported CCBA in numerous ground-breaking transactions across the African continent.
“As we continue delivering value for our clients, we ensure that we foster long-lasting, trusted partnerships. We have the reach, the expertise, and the resources to achieve our targeted growth across the continent, driven by the growth of the markets we operate in.”
“Through our investment banking and sector capabilities, we continue to deliver deals that power positive impact across Africa. We are proud to play a pivotal role in landmark projects that are transformative for our clients and for the markets in which they and we operate,” concluded Lovell.