To Press Releases listJul 1, 2010
the next three years, Nestlé will invest CHF 150 million to build three new
factories in Equatorial Africa and to expand existing factories
2 July 2010 – Nestlé today announced it is investing CHF 150 million in the
Equatorial African Region over the next three years. The Company will build new
factories in Angola, the Democratic Republic of Congo and Mozambique and
significantly expand its existing factories in Kenya and Zimbabwe. Nestlé will
also increase its distribution capacity in the region by opening 13 new
distribution facilities. Over the next three years, Nestlé will more than
double its work force and create 750 new jobs in Equatorial Africa.
Chief Executive Officer Paul Bulcke said, “Nestlé
is committed to unlock the business opportunities and to promote growth in
Equatorial Africa. With 400 million people and an emerging middle-class with
rising purchasing power, this region has major potential for Nestlé. By opening
new factories in the region, we are closer to our consumers and can better
adapt our products to their taste and nutritional needs. At the same time, we
share our success by sourcing locally, creating new local employment and
helping in the further development of the region.”
announcement came as Mr Bulcke
concluded his visit to Nestlé’s Equatorial African Region (EAR), headquartered
in Nairobi. The EAR region spans 20 markets including Kenya, Angola, Burundi,
Comoros, Democratic Republic of Congo, Djibouti, Eritrea, Ethiopia, Madagascar,
Mauritius, Mozambique, Malawi, Republic of Congo, Rwanda, Seychelles, Somalia,
Tanzania, Uganda, Zambia, and Zimbabwe.
his week-long tour, Mr Bulcke
visited the Democratic Republic of Congo, Mozambique and Kenya demonstrating
Nestlé’s commitment and continued investment in the area.
the Democratic Republic of Congo Nestlé is investing CHF 40 million in a new
factory located in Kinshasa. The factory will, among others, produce culinary
and dairy products, coffee and other beverages. Nestlé currently operates a
distribution centre in
Kinshasa which was established in September 2009. By 2012 the total number of
employees in the Democratic Republic of Congo will grow to 300.
Mozambique, Nestlé has committed an investment of CHF 30 million to build a new
factory and distribution centre in Beira. The factory will support
the increasing demand in Mozambique and neighbouring
countries for Nestlé products such as coffee, other beverages and culinary
products. The factory will create over 260 new jobs by the end of 2012.
Angola, Nestlé will invest CHF 25 million in a new factory which is expected to
bring the total number of employees to 145 by the end 2012. Currently, Nestlé
sources products for the Angolan market from other countries such as Portugal
and Brazil. Angola is particularly important for Nestlé as it is an emerging
market with a strong economy and a growing purchasing power.
Kenya Nestlé is investing CHF 30 million in the expansion of its Nairobi
factory including a new production line to support its newly launched food
service division, Nestlé Professional. The factory will supply Kenya, Uganda,
Tanzania, Rwanda, Burundi, eastern Democratic Republic of Congo, Malawi and
Zimbabwe Nestlé is investing in the expansion and upgrade of its Harare factory
at a cost of CHF 25 million. This is expected to boost its production capacity
and to help supply other regional markets such as Zambia and Mozambique.
Elaborating on the planned investment,
Nestlé Executive Vice President responsible for Zone Asia, Oceania, Africa and
Middle East, Frits van Dijk said, “The
20 countries forming Nestlé Equatorial African Region are grouped based on
their somewhat similar social and economic development pattern. Our strategy in
the region is based on a specific business model that supports local sourcing
of raw material, production and distribution of our products. Following this
strategy, we recently launched products like Maggi cubes, Nestea and we
re-invigorated and relaunched
our Milo brand in the EAR market.”
During the press conference, Mr Bulcke also
mentioned the wider impact of Nestlé’s activities. In Kenya, Uganda and Rwanda
for instance, Nestlé has signed a partnership with the East African Dairy
Development Board to help stakeholders across the entire value chain, from farm
to factory, to bring the milk to desired standards. Some 179,000 farmers are
involved in this programme.
In Mauritius, Kenya and Mozambique Nestlé
is preparing the launch of its Global Healthy Kids Programme.
This programme aims
to improve the nutrition, health and wellness of school children through better
nutrition, greater physical activity, and other key health measures such as
hygiene and sanitation.
In Uganda and Tanzania, Nestlé partnered
with the Uganda Coffee Development Authority (UCDA) and the Tanzania Coffee
Research Institute (TaCRI) to improve the coffee sectors in
these two countries. The project aims to help develop coffee trees with
improved productivity characteristics, higher disease resistance and higher
quality which in turn help increase farmers’ competitiveness and income.
the Democratic Republic of Congo, Nestlé sponsored a women’s entrepreneurship
program. The New Hope Project is aimed at developing entrepreneurial skills of
women in rural DRC and providing them with the opportunity to establish small
businesses selling Nestlé’s products.
These initiatives are an illustration of
Creating Shared Value which is a fundamental part of Nestlé's way of doing
business. It means that for a company to be successful, it should not only
create value for shareholders but also for society at large.
Nestlé we recognize that our success depends on creating value for society –
from the farmers who supply our products, to our employees, to our consumers
and the communities where we operate. Our aspiration in the region is to source
much of our raw materials locally to assist in developing the local economies.
It has been a great honour
for me to see first-hand this week how this is working on the ground.”
Brinda Chiniah –
About Nestlé EAR
Nestlé Equatorial African Region
(EAR) is a wholly owned subsidiary of Nestlé S.A. in Vevey,
Switzerland — the world’s largest nutrition, health and wellness company — with
sales of USD 99 billion in 2009. Nestlé EAR was set up in 2008 and oversees the
Nestlé operations in 20 countries: Kenya, Angola, Burundi, Comoros, Democratic
Republic of Congo, Djibouti, Eritrea, Ethiopia, Madagascar, Mauritius,
Mozambique, Malawi, Republic of Congo, Rwanda, Seychelles, Somalia, Tanzania,
Uganda, Zambia, and Zimbabwe.