PEPSICO’S VOTE OF CONFIDENCE IN SOUTH AFRICA’S FOOD AND BEVERAGE SECTOR

The recent announcement that food and beverage giant, PepsiCo, has entered into an agreement to acquire Cape Headquartered Pioneer Foods Group for R24bn has created quite a buzz of excitement for Cape Town and the Western Cape.

Wesgro CEO Tim Harris notes that the agreement is a vote of confidence for the food and beverage sector of the Western Cape and South Africa, and demonstrates that South Africa is indeed the springboard into the rest of Africa.

It has been a privilege for Wesgro, Cape Town, the Western Cape Official Tourism, Trade, and Investment Promotion Agency to assist Pioneer Foods in accessing opportunities, both nationally and internationally, through our International Trade team.

“As the Cape’s official trade promotion agency, we have been mandated by our government partners to facilitate outward foreign direct investment into the rest of Africa, positioning the Western Cape as a global headquarter for operations on the continent. This agreement shows that this is an attractive option for major global companies,” added Harris.

Western Cape Minister for Finance and Economic Opportunities, MEC David Maynier, added: “The Western Cape exported over $US33 billion worth of goods globally, with the rest of Africa being the single biggest market for these goods. In fact, seven of our top 15 export markets are countries in Africa. The future growth of the Western Cape’s economy is increasingly linked to accessing and leveraging the remarkable opportunities emerging on our continent. This deal demonstrates that the rest of the world is noticing this, and we encourage other global companies to follow suit and come and base their operations in the Western Cape.”

According to research conducted by Wesgro’s IQ unit (on behalf of the City of Cape Town and the Western Cape Government) from 2008 to 2018, the Food and Beverage sector made up almost one-third of the Western Cape’s outward investments into the rest of Africa.

Mayoral Committee member for Economic Opportunities and Assets Management, Alderman James Vos, highlights that this is precisely the reason for Cape Town being the “go-to-city” in Africa.  “Wesgro’s research, which we launched this month, found that over half of all companies surveyed on their Africa Strategy said that Cape Town was the best, or one of the best cities, for doing business on the continent. Moreover, three-quarters of respondents ranked demand for their product, as a top reason for exporting into the African market. It is clear Cape Town is well-positioned to be a springboard to access these opportunities, and we look forward to many more investments of this magnitude in the future.”

– Issued by Wesgro