Varun Beverages Invests $50 Million in Pepsi Facility
Varun Beverages DRC Unveils New $50 Million Pepsi Facility
Investment boosts job creation and advanced manufacturing capabilities in the region
Varun Beverages, a prominent franchisee of PepsiCo on a global scale, has made a significant announcement regarding a $50 million investment to set up a state-of-the-art Pepsi production facility in Kiswishi City, located in a Special Economic Zone (SEZ). This notable undertaking marks one of the largest consumer-centric foreign direct investments (FDI) in the history of the Democratic Republic of the Congo (DRC). The facility is poised to create thousands of job opportunities while promoting the global brand of Pepsi in this rapidly developing African nation.
Strategic Location and Economic Development
The new Pepsi facility will occupy a sprawling 15 hectares (approximately 37 acres) at Kiswishi City SEZ, conveniently situated along Highway N1. This prime location ensures easy access to Lubumbashi’s growing population and contributes to the broader economic landscape of Haut-Katanga Province and beyond. Kiswishi is ideally positioned to facilitate logistical efficiencies and drive economic growth, acting as a vital growth engine for both PepsiCo and Varun Beverages.
Ravi Kant Jaipuria, Chairman of Varun Beverages, expressed his enthusiasm for this expansion, stating, "Varun's expansion will meet the rising demand for Pepsi beverages and support our long-term growth trajectory in Africa. Our investment in Kiswishi City SEZ exemplifies our confidence in Congolese consumers and commitment to sustainable manufacturing."
Partnership with Rendeavour and Local Impact
Kiswishi City SEZ is backed by investors from the United States, New Zealand, the United Kingdom, and Norway. Rendeavour, the largest new city developer in Africa, spearheads this ambitious project. Their mixed-use developments across various African nations like Kenya, Nigeria, Ghana, and Zambia have led to billions in investments and have generated tens of thousands of job opportunities for local populations.
Yannick Kitambo, Operations Director at Kiswishi City SEZ, expressed his satisfaction with Varun Beverages' commitment, emphasizing that this new factory will open multiple employment avenues and enrich the economic environment of Haut-Katanga province. He added, "This investment is a testament to our dedication to make Kiswishi the most attractive destination for foreign direct investment in DRC. With its secure and predictable business environment, Kiswishi stands as an engine for growth in the region."
Government Support and Future Prospects
Kitambo acknowledged the support from the Special Economic Zones Authority and the Ministry of Industry, which have created a favorable investment climate through the reliable framework of SEZs in the country. Other operational businesses at Kiswishi City SEZ include Congo Petrol and Queen Energy, showcasing continued investment in the region. The first phase of Kiswishi's residential estate, known as Kimia, is already 95% sold out, highlighting strong demand in the area.
He also stated, "The professional support from the Government of DRC has been exemplary, especially from the President's office and the Ministry of Industry, which we anticipate will further encourage foreign direct investments in DRC, thereby stimulating socioeconomic development throughout the nation."
About Varun Beverages Limited
Varun Beverages Limited is a leading global franchise bottler of PepsiCo beverages, with operations spanning multiple regions in Asia and Africa. The company boasts a comprehensive portfolio of carbonated and non-carbonated drinks. Varun made its foray into the African market in 2007, acquiring the franchise rights for PepsiCo in Mozambique, subsequently expanding to countries including Zambia, Morocco, Zimbabwe, South Africa, and recently, the Democratic Republic of Congo, where it successfully launched a production facility in Maluku SEZ near Kinshasa.
About Rendeavour
Rendeavour is recognized as Africa's largest new city developer. Supported by a consortium of investors including American, Norwegian, New Zealand, and British stakeholders, Rendeavour's projects are among the continent's most extensive construction initiatives. Rendeavour's developments create hubs for business, housing, education, and recreation within infrastructure-ready economic zones.
Currently, the company's ongoing development projects are collectively valued at over $5 billion. They encompass around 150 businesses, schools serving more than 6,000 students, and numerous mixed-income homes that either are occupied or in development stages. Over the past five years, Rendeavour has generated more than 50,000 jobs, including the establishment of East Africa's largest call center, staffed by 5,000 young Kenyans, serving major American clients.
Frequently Asked Questions
What is the purpose of Varun Beverages' new facility?
The new facility aims to increase Pepsi beverage production, creating thousands of job opportunities in the region.
Where is the new Pepsi production facility located?
The facility is located at Kiswishi City Special Economic Zone, strategically positioned to enhance logistical efficiencies.
Who is behind the development of Kiswishi City SEZ?
Kiswishi City SEZ is developed by Rendeavour, backed by international investors from various countries.
What impact does the investment have on the local economy?
This investment is expected to boost local employment, enhance manufacturing capabilities, and attract further foreign direct investment.
How has the government contributed to this investment?
The government has established a favorable SEZ framework that encourages investments, ensuring a secure business environment.
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