BENIN – The newly established Coca-Cola Donga Bottling Company SA (CCDBC), has inked a contractual loan agreement with the West African Development Bank (BOAD) to the tune of FCFA 20 billion (US$30m).
The capital investment will be channelled towards establishment and operation of a processing complex and a can manufacturing line by CCDBC in the Seme-Podji industrial zone in Benin.
Coca-Cola Donga Bottling Company was designated as the bottler of The Coca-Cola Company in Benin as of July 1, 2022, charging it with the mandate to produce and market all the products of its brands available in the country i.e., Coca-Cola, Fanta, Sprite and Schweppes, among others.
The move reaffirmed the beverage giant’s commitment to Benin to accelerate growth by creating a responsive system that will generate value for customers and consumers through improved supply chain, information technology and customer service, through independent local companies that know their communities and customers inside out.
The clinched capital investment will be channelled towards setting up a soft drinks processing line with a capacity of 385,000 hectolitres per year and 730,000 hectolitres from the 5th year.
In addition, it will have a mineral water processing line with an average of 7,300 hectolitres and a 64 million can manufacturing unit per year, which will be extended to 200 million cans from the 4thyear.
The establishment of the can manufacturing unit, the first of its kind in the West African Economic and Monetary Union (WAEMU) area, will meet the demand of brewers in the region for this type of packaging, which is increasingly used and compliant. to environmental standards.
“By deciding to support CCDBC SA, BOAD is part of a dynamic of support for national champions. This project fits perfectly into the Government Action Program (PAG 2021-2026) of Benin, particularly in its pillar No. 2 pursuit of the structural transformation of the economy.
“It is also rooted in BOAD’s strategic plan called Plan DJOLIBA, particularly in its operational axis n°2 contribution to the creation of value and productive jobs in support of States and the private sector,” highlighted the development bank.
IFC supports Equatorial Coca Cola Bottling Company’s expansion plan with US$71m
The announcement of BOAD financially backing the bottling unit follows the International Finance Corporation (IFC) entering into an agreement with Equatorial Coca-Cola Bottling Company, that will see the West and North African bottler bag a US$71m financing package.
According to the financial institution, ECCBC will channel part of the funds to upgrade a production line at its Fruital plant in Algeria with a new CSD production line with a capacity of 45,000 bottles per hour.
The new production line will also have a 25% reduction in electricity consumption to produce replaced volume and a reduction in the utilization of raw materials.
In addition, the beverage maker seeks to set up a new packaged drinking water line at its COBOMI plant in Morocco.
This will replace an existing line with a capacity of 20,000 bph and enable a reduction in plastic utilization.
The proposed investment will also support EECBC’s sustainability initiatives as it seeks to upgrade its coolers in Ghana, Algeria and other West African Countries with the purchase of 25,000, which will be 25% more energy efficient.
Further to that, its plants in Ghana and Morocco are set to commence utilization of green energy as the company plans installation of solar panels in Morocco and establishment of both a solar plant and off-grid solar coolers in Ghana.
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