The Coca-Cola Beverages Africa (CCBA) has exceeded its target to source 80 percent of its raw materials locally by 2020 as it is currently doing about 83 percent, an achievement it finds worthy of celebration on Africa Day.
With the company usually importing majority of its raw materials, achieving such high levels of local content frequently requires CCBA to assist suppliers to become compliant with its high standards, leading to improvements in quality and competitiveness.
This translated into increased opportunity for African suppliers, entrepreneurs and industrialists, helping to develop local economies, diversify goods made in Africa, and support intra-continental trade and inclusive growth.
“As CCBA, we strive to grow our business so that local suppliers benefit, jobs are created in the community, governments receive taxes and shareholders receive a return on their investment.
“We are currently focused on identifying more categories where we can source locally, such as locally-sourced recycled PET, localising the manufacturing of original equipment, manufacturers’ parts, and sourcing locally-grown fruits for fruit juice.
“For greater impact, we also aim to empower women and youth in our local sourcing initiatives,” said CCBA CEO, Jacques Vermeulen.
The CEO added that the company believes that by doing business the right way with locals, it can contribute to improving livelihoods in communities where it operates and make the continent a better place for all.
In Ghana, for instance, CCBA sourced 100 percent of its raw materials locally before the end of the year 2020. Initially, local suppliers didn’t have the necessary technical equipment and expertise to produce preforms, closures, and labels according to the company’s specifications.
CCBA proactively supported them with technical skills and contractual off-take agreements which enabled them to purchase the required machinery to improve their standards.
With increased local sourcing, CCBA saved costs on shipping, customs, clearing, and inventory management, driving bottom-line profitability and illustrating how economic inclusion can be beneficial to both businesses and local economies.
Africa Day has taken on a new significance under the African Continental Free Trade Agreement, creating the world’s largest free trade area and a 1.2-billion-person market that has the potential to power industrial development and lifts millions out of poverty.
A goal that CCBA is committed to contributing to making a reality.
More relevant in Africa than any other continent, women are integral to the continent’s shared success and are often the decision drivers behind consumer spending trends.
CCBA seeks to empower women both in the workplace and via community programmes throughout its markets on the continent.
The company supports women entrepreneurs to thrive through the provision of funding, mentorship, and training.
An example is the Entoto Women Empowerment programme in Ethiopia which was launched in 2020. It has enabled more than 260 women to earn higher incomes by collecting and selling used plastic bottles and distributing the Coca-Cola Company’s products.
Seeing significant growth potential in Ethiopia, CCBA established nine new intensive training centres to increase the amount of polyethylene terephthalate (PET) collected, resulting in more than 400 women receiving intensive training on PET reuse and recycling.
CCBA also embarked on a market development programme that empowered over 800 women business owners through the provision of coolers to sell more products and expand their businesses.
On the youth front, empowering young people and enabling their inclusion in the economy is critical if CCBA is to achieve its vision of making Africa a better place for all.
CCBA empowered over 11,100 youths in 2020 across various markets to help make them active participants in the economy.
In South Africa, as an example, CCBSA established an enterprise development initiative in 2015, known as Bizniz-in-a-Box, to make a sustainable impact on youth unemployment by creating an ecosystem of viable micro-businesses offering complementary products and services in township communities.
Using the spaza shop as the anchor, each business operates out of a custom-designed container, covering various core needs of the local community. The programme offers young entrepreneurs an opportunity to learn business skills to enable them to grow and run their businesses.
CCBSA has trained over 720 young entrepreneurs and rolled out over 220 Bizniz-in-a-Box outlets since the inception of the programme, of which 47 percent are female-owned businesses.
