ETHIOPIA – PepsiCo, multinational food, snack, and beverage corporation is seeking to invest US$40m to expand its snack business in Ethiopia dubbed Senselet.
The earmarked investment is set to increase the production capacity of the potato chips maker by tenfold and enable it expand beyond snacks.
Senselet, the producer of SUN Chips was established in 2015 with commercial processing commencing in 2017.
Its SUN Chips comes in a wide variety of flavours including Natural (salty), Habesha (locally spiced), Tomato and Paprika flavoured, packaged in 3 different pack sizes and sold across approximately 10,000 small-retail outlets in the country.
According to Chris Wijnterp, GM of PepsiCo’s Foods unit in Ethiopia, the investment is further proof of the confidence that PepsiCo has in the potential of the country for economic growth.
“This also allows us to further leverage PepsiCo’s expertise to help accelerate the growth of Senselet in Ethiopia by boosting its potato sourcing programs, as well as its manufacturing and go-to-market capabilities,” he said.
PepsiCo highlighted that its strong knowledge of potato cultivation will enable Senselet to take the next steps in contributing to the development of the potato value chain and agriculture sector in Ethiopia.
”This forms part of our efforts under the PepsiCo Positive strategy to help build a more sustainable food system in Ethiopia – one that can meet human needs and continue to drive global economic and social development, within the planet’s natural boundaries,” says Wijnterp.
The company aims to contribute to food security in Ethiopia by developing the production of potatoes locally, increasing farmers’ income and building a more stable potato value chain.
Pepsico through Senselete has established strong business partnerships with local farmers as well as commercial partners over the past 6 years and is expected to establish further agriculture partnerships to ensure quality and availability of ingredients.
These efforts will contribute to the PepsiCo Positive agenda, a strategic end-to-end transformation with sustainability at the centre of how the company will create growth and value by inspiring positive change for the planet and people.
It is aimed to guide the food manufacturer on how to transform its business operations: from sourcing ingredients, making and selling its products in a more sustainable way.
Since 2017, Senselet has created more than 300 jobs as well as the establishment of initial exports to two neighbouring countries.
In addition, it allowed for the procurement of potatoes from several thousands of smallholder farmers, which subsequently doubled their respective income via improved yields and prices.
“The new investment will create over 500 additional jobs, while also a strong CSR roadmap is defined to further strengthen our role and contribution in local communities.
“As an example, we have been donating potatoes to IDP’s in the Amhara region, while under our PepsiCo Foundation umbrella we have donated meals to the elderly during the pandemic,” Wijnterp further indicates.
PepsiCo’s decision to further invest in Ethiopia will result in an acceleration of this impact, with a specific focus to increase our exports revenues, to become net hard currency positive while increasing our agricultural demand and footprint both in potatoes as well as additional crops.
Welcoming the announcement from PepsiCo, the Ethiopian Investment Commissioner, Lelise Neme said, “This announcement is testament to the work the Ethiopian government has done in creating a conducive investment environment for foreign companies.
“The Ethiopia investment reform process has also improved the opportunities for investment and widened the range of sector and economic activities open to foreign direct investment.
“We look forward to witnessing the growth of PepsiCo in Ethiopia and the subsequent benefit to our economy, communities and agricultural sector.”
The final investment is pending the applicable licenses and investment benefits.
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