Coca-Cola Hellenic Bottling Company (HBC) is looking to invest USD 1 bn in the Egyptian market over the next five years following its acquisition of Coca-Cola Bottling Company of Egypt (CCBCE), CEO Ahmed Afify told PM Moustafa Madbouly yesterday, according to a cabinet statement. The money will go towards building factories and adding production lines, he said. The statement provided no further details on the company’s spending plans.

The acquisition: Over the summer a subsidiary of HBC purchased a 94.7% stake in CCBCE for USD 427 mn, giving it access to Egypt — one of the largest markets in Africa. FTSE 100-listed Coca-Cola HBC is one of the largest Coca-Cola bottlers in the world and is 23% owned by the US’ Coca-Cola Company.

Madbouly has taken a personal interest in the company’s activity: “I will personally follow up on the company's work in Egypt during the coming period, and I will visit its site after the start of its expansions,” Prime Minister Moustafa Madbouly said during his meeting with HBS and CCBCE executives and representatives.

IN OTHER INVESTMENT NEWS-

Germany’s BSH Home Appliances will begin constructing its planned EUR 30 mn (EGP 550 mn) oven factory in Tenth of Ramadan City next year, which will be the company’s first factory in Africa, according to a press release (pdf). Construction is set to take two years, with the factory slated to come online in 2024. The facility will have a production capacity of over 350k units per year, with a portion earmarked for the local market and some earmarked for exports. The company plans to sell the units under the Bosch brand to consumers in Egypt, as well as export them to other countries.

Background: BSH has been eyeing the Egyptian market since 2018, when it initially reported interest in constructing a EUR 80 mn water heater and stove manufacturing company. The company signed a memorandum of understanding with the Trade and Industry Ministry in 2019 to build its home appliances factory.