AFP Business News

Click to enlarge photo

NAIROBI (AFP) - Soft drinks giant Coca-Cola on Thursday announced it would invest 50 million dollars in its five franchises in Kenya, where post-election violence adversely affected the firm.

"This is one of the largest capital investments made by the soft drinks giant in the country in any single year so far," said Adeola Adetunji, general manager of Coca-Cola East and Central Africa.

"Our contribution to Kenya's social and economic development is long-term and deliberate, hence our level of capital investment in the country," he added.

"Our business in Kenya was adversely affected by the post-election violence. However we are pleased that we can now see progressive stability in our operating landscape. At Coca-Cola, we see Kenya as a viable investment destination and more particularly in the long term, and are confident that our investments will yield positive returns."

Coca-Cola, known for pushing its products to far-flung corners of the world, has a near-monopoly in making soft drinks in the country.

President Mwai Kibaki has urged investors to return to Kenya, saying stability has been restored after months of violence that claimed at least 1,500 people and displaced hundreds of thousands.

In addition to shattering Kenya's reputation as a bastion of stability in a region beset by conflicts, the crisis choked the mainstay tourism and agricultural sectors.

Effectively, the treasury slashed the 2008 growth forecast from 7.0 percent to between 4.5 and 6.0 percent, with independent economists putting it at an average of four percent.