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The Journal of African Business, Issue 10

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Welcome to The Journal of African Business, your up-to-date guide to business and investment trends on the continent. A unique guide to business and investment in Africa, September / October / November 2024.

NEW BEVERAGES PRODUCTION

NEW BEVERAGES PRODUCTION LINE DRIVES GROWTH The East Africa operations of Coca-Cola Beverages are bringing efficiency and growth to Uganda. Coca-Cola Beverages Uganda has a new, -million, polyethylene terephthalate (PET) production line at its head office in Namanve. The line has a capacity of 67 000 bottles per hour and is driving efficiency and growth in the Ugandan beverages industry. Coca-Cola Beverages Africa’s fastest plastic bottle production line in its East Africa operations, with a capacity of 67 000 bottles per hour and equipped with state-ofthe-art technology such as robotic arms and automated fillers, is driving efficiency and growth in the Ugandan beverages industry. In 2022, Coca-Cola Beverages Uganda (CCBU), a subsidiary of Coca-Cola Beverages Africa, commissioned the construction of a new line at its head office in Namanve. The line was designed to increase efficiency and productivity. CCBU’s new polyethylene terephthalate (PET) production line started operating in 2023. The company invested -million to ensure CCBU’s range of soft drinks are widely and consistently available to consumers. As the country looks to increase the industrial sector’s contribution to Gross Domestic Product to 31% from the current 27.4% and the share of labour force in the sector to 26% by 2040 , CCBU has stepped up to contribute towards this goal. To create jobs, reduce imports, encourage investment in manufacturing and enable the production of goods within Uganda’s borders, the government has since the late 1990s established specialised zones dedicated to boost industrialisation in the country. “Because we are thought and execution leaders in operational efficiencies, we made sure our production line goes beyond production numbers,” explains Melkamu Abebe, the General Manager of CCBU. “This translates to shared opportunity across the value chain. It means job creation, with CCBU currently employing over 900 people. Additionally, the increased production significantly boosts local businesses supplying us with raw materials and services.” The line, Abebe said, confirms CCBU’s commitment to Uganda’s development as it will also increase taxable income to the government. “This is one example of our ongoing journey to bring our products to consumers in new and dynamic ways. Demand for our products has increased across Uganda. So, we invest to ensure that we reach our customers and consumers with the best quality products available in the market,” Abebe said. 16

ECONOMIC GROWTH Distribution goes to the next level in Uganda A network of Official Coca-Cola Distributors (OCCDs) is helping to ensure that Coca-Cola products reach Ugandans efficiently in every corner of the country. As a Fast Moving Consumer Goods manufacturer, Coca-Cola Beverages Uganda (CCBU) has innovated to create a system that helps it to consistently deliver quality products to consumers across the five geographical territories of Kampala, Central, North, East and South. “We understand that our success is linked to the success of our customers. That's why we’ve established a robust OCCD system, ensuring efficient distribution and exceptional customer service throughout Uganda,” said Mike Kaziro, Route to Market Specialist at CCBU, a subsidiary of Coca- Cola Beverages Africa. According to Kaziro, the foundation of the OCCD system begins with a meticulous selection process in which individuals with ambition to excel and resources such as trucks, warehouses, mobile phones and a dedicated workforce are verified and appointed. Once appointed, CCBU’s user-friendly online system tracks sales, maintains detailed records and empowers OCCDs to plan deliveries with precision. They use the same system to access real-time data for customer details and to track the status of customer orders, including information on products that are out of stock. “The system also has a call list of all OCCDs’ deliveries in specific areas. This eases their product dispatch process and enables them to talk to customers at all times during the distribution process,” Kaziro says. The system’s capabilities go beyond record-keeping. It facilitates daily performance tracking, allowing the sales and marketing team to identify areas where OCCDs might require additional support. The data-driven approach ensures challenges are addressed swiftly, keeping the distribution network running smoothly. In some areas, providing coolers is crucial to maintain optimal beverage temperature. CCBU actively supports OCCDs by providing coolers to customers, to ensure retailers can offer refreshingly cold drinks throughout the day, which boosts their sales. “CCBU has distributed 47 000 coolers countrywide and continues to distribute coolers on a regular basis. This is one of a number of initiatives to help our OCCDs sell more,” Kaziro says. CCBU’s sales team undergoes rigorous training in stock management, customer service and product knowledge. This expertise is transferred to OCCDs, empowering them to provide exceptional service to customers who make CCBU’s quality products available to consumers. Research conducted by CCBU is also used to assist OCCDs to increase sales and ensure they have all the tools they need to stay competitive, through customised promotions for specific areas. “By optimising our network,” says Kaziro, “we aim to achieve greater efficiency, boost sales volumes and ensure exceptional customer service throughout Uganda.” With the OCCD system in place, CCBU is empowering local businesses and contributing to the success of countless Ugandans. With continued investment in technology, training and network optimisation, CCBU and its OCCD partners are poised for a future of shared opportunities. ABOUT CCBA CCBA is the eighth-largest Coca-Cola bottling partner in the world by revenue, and the largest on the continent. It accounts for over 40% of all Coca-Cola products sold in Africa by volume. With over 18 000 employees in Africa, CCBA services more than 720 000 customers with a host of international and local brands. The group was formed in July 2016 after the successful combination of the Southern and East Africa bottling operations of the non-alcoholic readyto-drink beverages businesses of The Coca-Cola Company, SABMiller plc and Gutsche Family Investments. CCBA shareholders are currently: The Coca-Cola Company 66.5% and Gutsche Family Investments 33.5%. CCBA operates in 15 countries, including its six key markets of South Africa, Kenya, Ethiopia, Uganda, Mozambique and Namibia, as well as Tanzania, Botswana, Ghana, Zambia, the islands of Comoros and Mayotte, Eswatini, Lesotho and Malawi. Learn more at www.ccbagroup.com Follow us on LinkedIn 17

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