Pepsi investment on course
ZIMBABWE’s investment climate is conducive for business and any serious investor is able to set up shop in the country with few hassles, international bottling company — Pepsi — has said.
The company’s statement comes as it has managed to firmly establish its foothold in the country with a US$30 million investment towards construction of a bottling plant well on course.
Pepsi is constructing the bottling plant in Harare, amid expectations that it will be commissioned in September this year.
Indian billionaire Ravi Jaipura is behind the Pepsi project after investing in the country through his Varun Beverages international firm.
Responding to questions from The Sunday Mail, Varun Beverages’ chief executive officer for Africa Mr Krishnnan Shankar said Zimbabwe offers a better investment climate than any other country in which the company has invested in.
“Like every country, Zimbabwe also has challenges for a new investor, but as a group we look at the positives and then evaluate,” he said.
“Zimbabwe has a rich human resource, high literacy levels, friendly neighbouring nations, no issues of terrorism or insurgency and there is a good opportunity for our brands to do well.”
Mr Shankar said although the company faced some hiccups in establishing its business, the conditions on the ground were now better.
“We had initial hiccups, but as we are progressing, the different institutions are noticing we are serious investors and we are getting all necessary assistance from them,” he said.
“Despite Zimbabwe ranking fairly low on the world ease of doing business list, on ground we are able to conduct our business without much hassles.
“The nation is going through certain problems, but if we look at the macro scenario, so are other nations in Africa.
“For example the biggest economy of Africa — Nigeria — has experienced huge depreciation of its local currency and the economy has challenges.
“Closer to Zimbabwe, Mozambique has issues to sort.”
Mr Shankar said progress on the Pepsi plant was going according to plan with construction set to be completed by August and full-scale production commencing November.
“The civil and structural work has already commenced. Due to rains, the pace of the work is a bit slow which should pick up once the rains subdue,” he said.
“We expect completion of construction and commissioning of the plant around August — September 2017.
“We expect the trial production to start around October and the commercial production by end of October or mid-November.
Mr Shankar said the plant, which is expected to employ 400 people at full capacity, has to date created job opportunities for more than 100 people.
The bottling plant is expected to produce beverages that include Pepsi Cola, Mirinda, Mountain Dew, 7 Up and Aquaclear Water.
Indications are that after the bottling plant, the company will also invest in the food processing sector.
The company has managed to comply with Zimbabwe’s indigenisation and economic empowerment regulations.
Zimbabwe is implementing ease of doing business reforms to create favourable conditions for investors.
Latest rankings put Zimbabwe at position 155 out of 189 on the Ease of Doing Business index, a position that has been queried by the Zimbabwe Investment authority.