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Coca-Cola sells 21.5% of Appletiser shares in BEE deal

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Coca-Cola Beverages South Africa (CCBSA) has announced the sale of 21.5% of its shareholding in Appletiser South Africa (ASA) in two BEE deals.
Black-owned investment company, African Pioneer Group (APG), has acquired 17.5% and an additional 4% has been sold to a new entrant black empowerment partner, Sipho Excellent Madlala, a 20-year veteran of CCBSA. The value of the respective stakes was not disclosed.

The sale of the equity stakes was sealed after a process of evaluation and selection, facilitated by Standard Bank. It meets one of the merger conditions agreed to with the Competition Tribunal in relation to the creation of CCBSA last year. These were agreed when the southern and east African non-alcoholic ready-to-drink bottling operations of SABMiller, The Coca-Cola Company (TCCC) and Gutsche Family Investments were combined last May.

SABMiller previously wholly owned Appletiser but, with the merger, the manufacturing facility, ASA, became a subsidiary of CCBSA, the South African operation of Coca-Cola Beverages Africa (CCBA).

The Tiser brands (Appletiser, Grapetiser and Peartiser), also previously owned by SABMiller, were sold to TCCC as part of the CCBSA merger agreements. This meant that following the brand sale, the operating model of ASA changed from one of an owned-brand production company to a licensed manufacturer of TCCC brands.

Board members ready for action

As part of the merger conditions, the company undertook that ASA’s operations in Elgin (as well as related ASA operations) would be maintained and grown and that CCBSA would sell 20% of Appletiser in South Africa to a black economic empowerment holding which we have concluded ahead of the required timeline.

Through its 17.5% shareholding, APG will have a seat on the board of Appletiser. Stephen Dondolo, its CEO, already has experience sitting on the CCBSA board (and the Coca-Cola Fortune board before that). Through his 4% acquisition, Madlala will also acquire a seat on the board of ASA. Both will be active partners in the business, in keeping with the provisions of the merger conditions.

International expansion plans

Apart from Elgin, the Tiser brands are produced at one other South African facility, in Midrand, and at facilities in the UK, the Canary Islands, Belgium and Australia. However, the Appletiser facility in the Elgin valley in the Western Cape is the original – and the largest – producer of the products and accounts for some 59% of Tiser brands produced globally. Tiser products produced at ASA are marketed in a range of territories including Botswana, Namibia, Zambia, Lesotho, Mozambique, Japan, Australia, New Zealand, Hong Kong, Mauritius and Swaziland.

In terms of the Merger Agreement, at least 80% of the apples, pears, grapes and similar fruit inputs used for all juice concentrate used in producing Tiser products will be procured from fruit grown in South Africa. Plans are sufficiently in progress to increase the procurement of South African grapes for juice concentrate in Grapetiser over the next five years. Currently, all apple and pear concentrate is sourced from South Africa, with grape concentrate increasingly sourced locally, depending on availability and affordability of supply.

CCBSA MD, Velaphi Ratshefola said the company was confident that Appletiser has the capacity to increase production output considerably to serve the domestic market and to be used as a base for export to the rest of the continent and elsewhere in the world. There are plans in place for ASA to produce other TCCC brands (in addition to Tiser) that are currently produced at the other CCBSA manufacturing sites. With the addition of 200ml, 330ml and 440ml cans of other Coca-Cola products, the facility will produce around 5 million physical cases, which is well in excess of prevailing volumes at the time of the merger.

“We are delighted to have these two partners on board. African Pioneer Group has a long history with CCBSA through Coca-Cola Fortune. Madlala has worked his way up the ladder through hard work and perseverance. His experience in our industry is of enormous value and we have in both APG and Excellent long-term, dedicated and active partners for Appletiser.”

Success story

Madlala’s personal story is one of constant self-improvement and achievement, having started his working life as a cleaner at Amalgamated Beverage Industries (now part of CCBSA). Rising through the ranks, and earning a marketing qualification from Durban University of Technology along the way, he was promoted into positions that were more senior.

Given his leadership skills, he achieved a leadership position as district manager at ABI before the company merged to become part of CCBSA last year, heading up a 94 member-team. Madlala will retain this role in CCBSA following the transaction.

Source:bizcommunity
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Press Release

Insurpass Partners AXA Mansard To Provide Easy Access To Health Insurance Coverage For More Nigerians

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Insurpass, an insurance technology company has partnered with AXA Mansard, a leading player in the insurance and asset management sector to provide access to affordable insurance coverage for emerging customers in Nigeria.

The partnership will leverage Insurpass’ Open Insurance API to provide easy access to AXA’s health insurance products such as Malaria-care, Malaria-care plus, Easy Care, and so on.  AXA’s Malaria-care provides quality malaria test and treatment to customers at various accredited partner pharmacies nationwide. Malaria-care plus provides cashback on customers’ hospital expenses when placed on admission for 2 or more nights and pays life insurance benefit to the customer’s beneficiary in an event of a customer’s death. Easy Care provides comprehensive health coverage and gives customers access to over 1000 hospitals nationwide.

Insurpass, in its drive, to deepen insurance penetration, increase financial inclusion and break the barrier to accessing insurance coverage in Nigeria. Through its plug-and-play API infrastructure and embedded insurance model will enable other service providers ranging from Banks, Health-techs, Edu-techs, and various point-of-sale agents to enroll customers for this health insurance scheme. The company also promises coverage to the base-of-the-pyramid consumers who live in rural areas. And do not have access to smartphones or internet service, as it will enable them to access healthcare insurance. Through thousands of point-of-sales agents who already carry out mini-financial activities around their neighborhoods.

Speaking about the partnership with AXA Mansard, Gloria Agboifoh, Head of Partnership and Business Development at Insurpass stated that, “Insurpass at its core is committed to breaking the barrier to inclusive insurance in Nigeria and bringing innovative and affordable insurance closer to the very people that needs it the most and this partnership goes a long way in bringing the company closer to its goal of democratizing access to insurance coverage starting with health insurance”.

In the same vein, Mr. Alfred Egbai, Head, Emerging Customers and Digital Partnerships Group at AXA Mansard, stated that “our aim is to create innovative products that cater for the needs of our customers. We will therefore continue to strive to ensure that these products are easily accessible, this is why we have partnered with Insurpass to achieve this objective”.

Insurpass, provides an API-driven insurance infrastructure-as-a-service solution that enables companies across various sectors to embed insurance products and back-end insurance components into any web, mobile app, or USSD channel through its Open Insurance API.

AXA Mansard is registered as a composite company with the National Insurance Commission of Nigeria (NAICOM). The Company offers life and non-life insurance products and services to individuals and institutions across Nigeria whilst also offering asset/investment management services and health insurance solutions through its two subsidiaries – AXA Mansard Investments Limited and AXA Mansard Health Limited respectively. The parent company was listed on the Nigeria Stock Exchange in November 2009.

Customers can also access affordable insurance products on their devices when they log on to BimaCred an online platform powered by Insurpass.

 

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Wärtsilä reaches 7GW installed power capacity milestone in Africa

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Wärtsilä’s Energy system integration night (Image: Wärtsilä)

With over 600 power plants commissioned in 46 African countries, Wärtsilä confirms its position as a leading provider of power generation solutions in the continent

The technology group Wärtsilä first began its Africa operations in Tanzania back in 1975. Since then, the group has delivered more than 600 installations, supplied power plants in 46 countries, generating 25% of the national electricity supply in over 25 countries. Total installed capacity now exceeds 7.4 GW of which one-third is covered by operation and maintenance contracts. Today, Wärtsilä is the undisputed leader in the medium-speed power engine market in Africa.

This strong track record, built up over decades, has its roots in a dedicated local presence combined with the capability to bring together international expertise to build groundbreaking energy solutions.

Wärtsilä’s Industry Firsts in Africa

With more than 650 employees and service hubs located in Kenya, South Africa, and Senegal. Wärtsilä is proud to have contributed to many industry firsts. These include Africa’s largest gas engine power plant on the Kribi coast of Cameroon with 216MW capacity, as well as Africa’s highest installation, the 175 MW power plant in Sasolburg, South Africa, sitting at 1,700 meters above sea level.

Another first, the KivuWatt power plant in Rwanda, is the first ever power plant to use the naturally occurring methane from lake Kivu to generate electricity and reduce the environmental risks associated with such high concentrations of gas. Today’s power output is 25 MW but future planned expansions to this project will increase capacity by an additional 75 MW.

Wärtsilä’s reciprocating gas engine technology and innovative energy management systems play an important role in response to Africa’s growing demand for flexible and reliable electricity. Small to medium size projects can be used to establish microgrids in remote regions. Their flexibility means that they can work hand in hand with renewable energy resources. Output can be ramped up at the same rate as wind or solar output fluctuates. One example is the 15 MWp hybrid engine-solar PV power plant for the Essakane gold mine in Burkina Faso: The combination of low-cost renewables with flexible engine solutions enables energy intensive industries to enter an era of more cost efficient and climate friendly operations.

Africa’s Future, Beyond Energy

No single project is the same. As a leading international EPC (Engineering, Procurement and Construction) company, Wärtsilä has a history of providing unique power solutions to meet the specific challenges of its clients. As well as to extend educational and economic benefits to local communities when delivering on projects such as Tasiast in Mauritania and Ndola in Zambia

For Wärtsilä, EPC also means Experience, Proven and Compliant. These projects have helped several nations accelerate their development and increase their standard of living, not to forget the many jobs created across the continent. At the heart of each project is local engagement, training and transmission.”, said Fabien Cadaut, Marketing & Communications Manager, Africa, Wärtsilä Energy.

This is why Wärtsilä has proudly joined forces with Ambitious.Africa, an initiative working to connect the youth of African and Nordic countries. To foster upcoming talent and co-create a more equal and sustainable future. Through this association, Wärtsilä can actively connect students, entrepreneurs, start-ups, financiers, and other stakeholders from across two continents. And provide them with the knowledge, skills and training they need to bring about real and lasting change.

As another example, Wärtsilä provides local institutions in Senegal with hands-on training and support for talented students often struggling to find their place in working life. This is part of its corporate social responsibility efforts. Another recent contribution was made in support of solar energy unit installations in informal settlements in the Western Cape. The households in these settlements are either connected to an illegal and unsafe electricity source or have no access to basic electricity.

As recent contracts such as the 120 MW power plant project in Gabon. The 90 MW gas conversion project in Senegal, and renewed O&M contracts in Nigeria demonstrate, Wärtsilä is committed to accelerate broad-based electrification across Africa.

 

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Investment

Asilimia secures $2 million to build the financial infrastructure of Africa’s informal economy

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Asilimia founders and employees (Image: Asilimia)

Asilimia, a startup that is building the digital infrastructure to connect African MSMEs to the formal financial economy, has secured $2 million. To grow its team, deliver new services and expand into new markets in East Africa. The startup raised $1 million in pre-seed funding from a wide range of investors, including two-time unicorn founder, Fredrik Jung Abbou (co-founder of Kry and Lendo), Norrsken Impact Accelerator and other prominent founders from across Europe.

It also raised $1 million in a debt round that included Bpifrance and GreenTec Capital Partners. The pre-seed funding will support team growth and expansion while debt funding will enable Asilimia to extend credit to MSMEs, providing much-needed financing to help them scale their businesses.

Asilimia is on a mission to build the digital financial infrastructure of Africa’s highly fragmented and paper-based informal economy, and address the $360 billion credit gap that is impacting the continent’s 150 million MSMEs. Despite contributing approximately 38 percent of Sub-Saharan Africa’s GDP, lack of consolidated data means MSMEs are considered as high risk, leaving them locked out by traditional financial institutions.

And even in a country like Kenya that has a higher financial inclusion rate than most of the continent due to the advent of M-Pesa, most MSMEs still use pen and paper to record their transactions, and 30 percent of their profit is spent on mobile money transaction fees.

Asilimia has built an affordable and easy to use digital platform that formalises payments, revenue collection and accounting for business owners. Making it easier to monitor their business activities in one place. Using just their mobile phones, business owners can record their expenses and sales. Track pending payments and gain financial insights through a simple dashboard that is more efficient than using pen and paper. They can also connect their personal mobile money accounts and save up to 90 percent on transaction fees.

This consolidated and verifiable business data de-risks business owners. Making it easier for them to access a range of financial services, including insurance, savings and loans to meet their specific needs, accelerate their growth and support development in their communities. The startup is growing at 30 percent week on week, and the app is used an average of 90 times per month per customer.

According to Tekwane Mwendwa, CEO and co-founder of Asilimia, “Africa’s informal businesses are the backbone of its economy and we want to unlock their GDP to drive further growth and development across the continent. Our focus over the last few years has been to build a solution that works and this new funding will enable us to take it into new markets and impact the lives and livelihoods of more business owners.”

Asilimia was founded by Tekwane Mwendwa and French entrepreneur Morgane Kablan to build the first financial infrastructure of the informal economy in Africa. The startup was incubated in the prestigious Station F programme in Paris. And it has also been through the Norrsken Impact Accelerator programme.

Funda Sezgi, co-founder and Managing Director at Norrsken Impact Accelerator said, “MSMEs play a vital role across Africa and making it easier for them to succeed is great for the continent as a whole. Tekwane and the team have built a solution that works and we are delighted to be supporting them as they drive prosperity in a key sector for the African economy.”

 

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