May 8, 2008

Coca-Cola Unfolds Initiative to Support African Entrepreneurs

This Day (Lagos)

Coca-Cola Africa ,Tuesday, restated its commitment towards ensuring the attainment of the Millenniuum Development Goals(MDGs) by throwing its weight behind communities in the continent for sustainable future.

Unfolding a new initiative that is expected to boost economic growth across the continent , at a Business Call to Action event held in London , the company restated its commitment to investing in the expansion and upgrading of its distribution network of Manual Distribution Centres (MDCs), which , it says , are significant in maximising job and wealth creation in Africa's MDC-surrounding communities.

In announcing Coca-Cola's initiative at the event in which the company was recognised as an important contributor in the critical drive to achieve the MDGs , Chairman and CEO, The Coca-Cola Company, Neville Isdell said: "I firmly believe that business can have a very positive role in achieving the Millennium Development Goals.

"As part of the Call to Action, we at The Coca-Cola system will continue to use the core of our operational expertise and a winning formula of our business success in Africa - a distribution system based on independent local entrepreneurs - to create more jobs, more prosperity, more entrepreneurship and skills and ultimately more sustainable communities."

At the epoch-making event hosted by the United Kingdom Secretary of State for International Development , Douglas Alexander, and Kemal Dervis of the United Nations Development Programme (UNDP),the company said it aims to enhance this distribution network and replicate this model in key African countries over the next three years .This,in turn, is expected to create between 1,300-2,000 additional independent distribution businesses, 5,300-8,400 new jobs and generate new revenue of between US$320 million and US$520 million .A statement from the company made available to THISDAY said the pilot project which kicks off in the course of 2008 is being conducted in partnership with key bottling partner, Coca-Cola Sabco, the Harvard CSR Initiative and the International Finance Corporation. "Coca-Cola's MDC business model, which has been operational over the past five years, is a distribution system based on independent local entrepreneurs, the foundation of the Coca-Cola distribution system. "It has created new small businesses, new jobs and increased skill levels, and, while rolled out across four East African countries, Tanzania was specifically chosen for a pilot project that will investigate ways to further enhance the socio-economic impact of this simple, yet innovative distribution system. This process will be completed in collaboration with local bottler, Coca-Cola Kwanza," said the statement.

"MDCs are best described as managed third party distribution centres. Instead of trying to service thousands of small retail outlets with small drop sizes, the bottler distributes to carefully selected MDCs who sell Coca-Cola products exclusively," the statement affirmed .

It further added: "The MDC owners are actively supported and managed by the bottler, who helps each owner establish their operations, including designing routes and methods of delivery and determining the frequency of delivery service required to maintain stock levels. "

Speaking in the same vein,Coca-Cola Africa Business Unit President for East and Central Africa , Nathan Kalumbu said: " The Coca-Cola Company aims to support the development of sustainable communities, because without sustainable communities we do not have sustainable business ."

According to him , "The Manual Distribution Centre (MDC) model, which is currently being executed in a number of African countries including Tanzania, has created new small businesses, new jobs and increased skills levels and provides a powerful platform from which we offer entrepreneurial opportunities that open the door to job and wealth creation."