East Africa: Study - Coca-Cola System Contributes Sh465bn to Comesa Economies

Nairobi — The Coca-Cola system contributed an estimated Sh465 billion to economic activity across the Common Market for Eastern and Southern Africa (COMESA) in 2024, supporting more than 458,200 jobs, according to a new study.

The study by consultancy Steward Redqueen found that the company's bottlers, suppliers, distributors and retailers generated USD 3.6 billion in economic value, equivalent to 0.3 percent of the regional bloc's combined gross domestic product.

The report also found that Coca-Cola spent nearly Sh194 billion on goods and services sourced from suppliers in COMESA member countries during the year.

The spending supported businesses in agriculture, sugar production, manufacturing, packaging, transport and retail.Coca-Cola Africa Operating Unit President Luis Felipe Avellar said the company's supply chain supported employment beyond its own operations.

"For every direct job created by the Coca-Cola system in COMESA, an additional 28 jobs are supported throughout the regional economy," Avellar said.

The findings were released during the 19th COMESA Business Forum in Nairobi, where businesses and regional leaders are discussing trade and economic integration among the bloc's 21 member states.

Alfred Olajide, Coca-Cola's vice president for East and Central Africa operations, said the company's activities supported local suppliers, retailers and distributors in the region.

The study used a Multi-Regional Input-Output model to estimate the economic effects of Coca-Cola's operations, purchases from local suppliers and links with businesses in different sectors.

The report was commissioned around Coca-Cola's regional operations, and the findings were presented by the company.

It did not provide a country-by-country breakdown of the estimated Sh465 billion contribution or the 458,200 jobs, making it difficult to establish how much of the economic activity and employment was generated in Kenya.

Coca-Cola also said it was supporting water initiatives worth nearly $25 million across 20 African countries by 2030.

Read the original article on Capital FM.