Factory due to be commissioned in 2016–17 to serve markets such as Algeria and Libya
Egypt Saudi Arabia’s Aujan Coca-Cola Beverages Company plans to spend USD100m to build a fruit juice factory in Egypt for serv- ing North African markets.
In a statement to Reuters on 23 February, Meshal Alkadeeb, vice-president of strategy and business development, said the investment would cover purchas- ing land and setting up a plant.
“The plant will be commis- sioned between 2016 and 2017. We just started working on it,” he was reported as saying.
Aujun sees Egypt as a North Africa hub – mainly for Algeria and Libya – and is confident the country is tackling its infrastruc- ture deficiencies, he added.
After three years of turmoil, Egypt’s military-backed admin- istration aims to woo foreign investment to tamp down social discontent and prepare for elec- tions this year.
Aujun, which is half owned by Coca-Cola Co, has already invested more than USD100m in the Mid- dle East’s food and beverage sector. Along with current investments,
largely in Dubai and Dammam, the firm has agreed to buy a major- ity share in Lebanon’s National Beverage Company.
In Egypt, “the biggest chal- lenges” for investment is currently infrastructure, said Alkadeeb.
But he added that the govern- ment has “realised this” and is “working seriously on addressing the gaps”.
“We’re talking about utilities,” he told Reuters.
“Water is very important and you need to make sure you get elec- tricity for a food factory. Packaging and wrapping material in our industry is also a challenge as well as the facilities that allow you to export and re-export.”
Importing raw materials into Egypt and sourcing them in the country can also present chal- lenges, he added.
Reuters added that a source from the Egyptian cabinet said a draft law would protect govern- ment deals with investors from legal challenges. This could ease concerns raised among investors by recent court cases.