ECCBC plans reductions in its water and energy footprint with the replacement of production lines, reduction of raw materials, and solar panel installation, among other actions.
IFC is providing a 64 million euro financing package comprised of a 52 million euro loan from IFC’s own account, 8.5 million euro equivalent in USD from the Canada IFC Blended Climate Finance Program (BCFP), and 3.5 million euro equivalent in USD from the Alafaq Aljadida Middle East and North Africa (MENA) Private Sector Development (PSD) program.
Equatorial Coca-Cola Bottling Company (ECCBC) has developed a sustainability strategy that has received the International Finance Corporation’s (IFC) support through a loan of 64 million euros. The loans provided by BCFP and MENA PSD, along with a similar amount from IFC, will be used for climate investments and will enable the company to progress on their climate agenda. The company’s ESG (Environment, Social and Governance) Impact Strategy 2030 reinforces the sustainability of the business ensuring it meets the evolving demands of its internal and external stakeholders and contributes to protecting the shared environment. Through its six pillars — packaging, water, climate, communities, sourcing and people — the ESG strategy follows ECCBC’s vision to become the best beverage company in each of the countries that it operates and the leading Coca-Cola system bottler in Africa, not only through the beverages they produce, but by creating long-term value for local communities and investing in a better future for Africa.
IFC is providing a 64 million euro financing package comprised of a loan from IFC’s own account of 52 million euros. The financing package also includes concessional finance from the Canada IFC Blended Climate Finance Program (BCFP) for an amount of 8.5 million euros equivalent in United States Dollars (USD) and the Alafaq Aljadida Middle East and North Africa (MENA) Private Sector Development (PSD) program for an amount of 3.5 million euros equivalent in USD.
According to this strategy, ECCBC plans to develop initiatives to reduce the company’s water and energy footprint in water-stressed areas like North Africa. Specific activities include the replacement of production lines to achieve energy and water savings, reduction of raw materials use, and solar panel installation, among other actions.
The project will also generate livelihood opportunities throughout the value chain as most of the company’s products are sold through small retailers. An exciting component of the project includes piloting off-grid solar-powered coolers at the “last mile” which would also help address the rising demand for safe beverages and food in markets where there is limited access to refrigeration and efficient transport. With these actions, ECCBC commits to preserve the environment by driving efficiencies and innovation.
“I am proud to say that Equatorial Coca-Cola has fared well in the face of the rapidly evolving challenges of the last few years and that we have continued making strides in our path towards becoming a more responsible, inclusive, diverse, and sustainable business,”Alfonso Bosch, Chief Executive Officer at ECCBC.
“To achieve this purpose, partnerships like the one with IFC are essential. By working together, we can unify forces to develop more impactful solutions and achieve larger goals, in order to improve the future of Africa,”Alfonso Bosch, Chief Executive Officer at ECCBC.
“By working with Equatorial Coca-Cola Bottling Company, we aim to help shape the beverage sector’s sustainability path and influence industry practices throughout Africa. The project targets reducing the company’s water and energy footprint through technological upgrades, solar solutions and piloting recycling programs. We look forward to working closely with more companies across Africa to help them achieve their climate and sustainability goals.”Henrik Elschner Pedersen, IFC Regional Industry Director in Africa for Manufacturing, Agribusiness, and Services
Beyond the investment, ECCBC and IFC will work together on the improvement of ECCBC’s Environmental and Social (E&S) practices through strategic and technical advice. For example, implementing sustainability measures, installing solar power, and boosting circular economy activities including recycling capacity, and energy savings in the cold chain.
ECCBC is the official Coca-Cola bottler in 13 countries in North and West Africa, with a proud history dating back over 30 years, and is committed to continuing to invest, employ, produce, and distribute locally while maintaining strong commitments to the economic and social well-being of each community it serves.
ECCBC recently consolidated its inorganic growth agenda in Morocco and Algeria. In Morocco, ECCBC has carried out an acquisition that has reinforced its position as the main Coca-Cola bottler in the country. In Algeria, ECCBC expanded its soft drinks business to the entire Algerian territory to create and lead a unified Algerian Coca-Cola Bottler.
ECCBC’s inorganic growth agenda shows its optimism and trust in Africa’s future with the vision to become a leading Coca-Cola system bottler in the continent. To this vision, the company unites its willingness to play an increasingly active role in African social and economic development, also by ensuring that it operates as an ESG oriented company, a priority for the future of local communities, and by extension for its own future as a business. ThirdWay Partners acted as sole strategic advisor to ECCBC.