Summary of Proposed Investment
Project Number
11414
Company Name
COCA-COLA SABCO (PTY) LTD
Date SPI Disclosed
Apr 16, 2002
Country
Africa Region
Industry
Agribusiness and Forestry
Projected Board Date
May 16, 2002
Status
Completed
Sector
Soft Drink
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : May 21, 2002
Signed : Jun 26, 2002
Invested : Oct 15, 2002
Project Description
CCS is an "anchor bottler" for the Coca Cola Company in the region and is one of the relatively small number of bottling groups worldwide where Coca Cola has an equity stake. The group has over 10 subsidiary companies and 19 bottling plants in the Southern and Eastern Africa region. The group has already invested more than US$100 million in production facilities in East Africa and Mozambique and employs approximately 8,000 people in 7 countries. It also supports a network of SMEs and other businesses which supplies with goods and services so that the multiplier effect is strong. The project consists of the expansion of soft-drinks production and distribution facilities at the CCS bottling companies. The expansions will take place mostly at existing plants, although, CCS is likely to acquire some existing bottling companies over the next year or two, which will also be re-equipped and expanded. CCS wants to reach an agreement with IFC on a master facility between IFC and CCS that can be drawn down as each of the sub-projects is implemented.
The project will have a sustainable development impact and will help reduce poverty through the expansion of the number of jobs and business opportunities created by Coca-Cola''s production and distribution networks in Africa. A number of the subsidiaries are joint ventures with local partners who play important operational roles. For example, in South Africa, CCS recently formed a joint venture with Fortune Beverages to enhance the empowerment impact of its operations. CCS is a group which shows strong social responsibility through its support for a wide range of community action projects (eg. road safety, environmental clean-ups, conservation), HIV/AIDS education and health campaigns, youth sports and financial support for schools, and other social services.
IFC''s role in the project will be: (a) to provide equity, long term loans and/or guarantees in countries where it is difficult to raise appropriate funds; (b) to help alleviate the relatively high risk associated with the countries where the investment is required by providing informal political risk cover; and (c) to encourage regional integration by helping to make it easier for the South African parent to invest regionally.
The project will have a sustainable development impact and will help reduce poverty through the expansion of the number of jobs and business opportunities created by Coca-Cola''s production and distribution networks in Africa. A number of the subsidiaries are joint ventures with local partners who play important operational roles. For example, in South Africa, CCS recently formed a joint venture with Fortune Beverages to enhance the empowerment impact of its operations. CCS is a group which shows strong social responsibility through its support for a wide range of community action projects (eg. road safety, environmental clean-ups, conservation), HIV/AIDS education and health campaigns, youth sports and financial support for schools, and other social services.
IFC''s role in the project will be: (a) to provide equity, long term loans and/or guarantees in countries where it is difficult to raise appropriate funds; (b) to help alleviate the relatively high risk associated with the countries where the investment is required by providing informal political risk cover; and (c) to encourage regional integration by helping to make it easier for the South African parent to invest regionally.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
See Addresses Above.