Business Fights Poverty

Business Fights Poverty

Business Call to Action: Coca-Cola - new enterprises and jobs in Africa

The UK Government and UNDP hosted the Business Call to Action event on 6 May 2008, inviting Chief Executives and Board Chairs from some of the world’s largest companies to showcase concrete initiatives that support economic growth and reduce poverty in developing countries.

This video showcases Coca Cola's announcement that with its bottling partners it is investing n Africa to find ways they can expand and upgrade their Manual Distribution Centres to generate more jobs, incomes and enterprises in local economies - currently 1800 of these independently run businesses, directly employ 7,500 people and generate revenue of US$0.5 billion.

The lessons learned initially in Tanzania will be applied in Coca-Cola's distribution network across Africa.

By leveraging and replicating this improved model, by 2010 Coca-Cola in Africa aims to create between 1,300 and 2,000 new independent distribution businesses; create between 5,300 and 8,400 new jobs; and generate new revenue of between US$320 million and US$520 million.

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Tags: action, africa, and, business, business call to action, More…call, coca-cola, enterprises, in, jobs, new, tanzania, to
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KREUTZER Comment by KREUTZER on October 2, 2009 at 2:26pm
The question if it is possible for Coca-cola to set up a business file to make the vanilla production going in the fair trade in Madagascar ,like it happens for cacao ,and some other product .
Pascal Dey Comment by Pascal Dey on July 20, 2009 at 6:38am
The topicality of the questions raised in the previous comments cannot be overestimated. That is, we are called upon to discuss whether or not Western-style consumerism in itself can contribute to the alleviation of poverty. The case of Coca-Cola is illustrative in that it entails a generic problem: Given that the poor, by definition, have limited disposable income, they need to make well-grounded decisions regarding how to best invest their money (in terms of sustainable livelihoods). The problem, however is that the poor, as scholars like Karnani and others have convincingly argued, are prone to being seduced by marketing claims and, by extension, prone to consuming goods (such as cigarettes and alcohol) that are evidently detrimental to their health. If one accepts that consumption per se is no panacea in the quest towards a wealthier world, the next step would be to inquire whether and how certain goods affect the livelihoods of the poor. On the face of it, such inquiries would have to not only measure the income situation of distributors. They would have to bring to light how the actual consumption of Coca-Cola affects poor people’s well being, health or human development quite generally. This being said, I want to make it clear that pro-poor distribution channels (the World Business Council for Sustainable Development speaks of “inclusive business” whereas Ashoka have put forward the term “hybrid value chains”) are an apt means for creating income opportunities for the poor. One must, however, not loose sight of the fact that the goods being distributed must necessarily be reflected as to how they affect consumers lives (poverty, health, education, empowerment, etc.). As long as one puts selective emphasis on the outreach of initiatives like that by Coca-Cola (e.g. 7500 people working in distribution channels), there would indeed be little empirical basis for claiming that the consumption of Coca-Cola profits the bulk of the poor. The issue of scarce disposable income in fact forces consideration of all the alternatives available to the poor (in terms of consumption) and the promotion of those alternatives which promises positive livelihood ramifications.
Maarten Comment by Maarten on June 23, 2009 at 10:46pm
If one wants to develop Africa, and one believes it needs to go through partnership with business, then we should accept that businesses enter Africa and sell their wares... like they do elsewhere in the world. I believe we can only develop Africa and eradicate poverty through business, and here coke is a good example of employing people, driving their business, and creating surely new entrepreneurs on the side. One should not immediately criticize their efforts in Africa, or you will all send them home and we are back to square one.
Iuliana Dutkay Comment by Iuliana Dutkay on June 19, 2009 at 3:35pm
The comment from Nancy Woodruff below is absolutely on point. Great initiative to adapt distribution networks to local conditions, but WHAT are they distributing is a valid question. Let's not just ship product that increasingly health-conscious consumers in the US and Canada and Western Europe are no longer buying, and look at the full implications. Are the poor drinking Coke because it is an appetite inhibitor, are they spending their meager income on a product that is in the long run damaging for health? Do they have a choice among other products than sugary/caffeinated drinks?
Ochola Michael Comment by Ochola Michael on May 19, 2009 at 11:30am
This is a good idea of jobs creation in Africa other than sofistication that leads to less jobs, Africa needs to grow and the growth can be guided through many factors and a few listed below, Coca cola is taking agood channel of CSR in Uganda too not only on job creation;

1) Increasding investment that would lead to more people acessing jobs and basic services.
2) Introduction of friendly technologies that can be compatible with the rates/levels in that nation. Eg look at China, Japan the nation is growing becuase many the labour system is not complecated to machines only but also many people being employed
AMARTEY ALBERT Comment by AMARTEY ALBERT on May 8, 2009 at 9:21pm
i wish to work with coca cola
Daisy Likukela Comment by Daisy Likukela on May 5, 2009 at 11:31am
Interested in joing the team, marketing, fundraising, campaign, logistics or community liaison and support with a great input in Corporate Social Responsibility.

If we follow the rule of life, almost, I mean "ALMOST" all foods are not too good for our health, too much eggs... too much salt....too much sweets....too much meat.....junk food, bread, rie, rice, alcohol the list goes on, so we just live by the grace of God.

Daisy Likukela
Zambia
ndiaga gueye Comment by ndiaga gueye on April 7, 2009 at 8:53am
We should give the world the same chance to survive.Like first adopt a one currency for the worldwide managing by the worldbank.
Nancy Woodruff Comment by Nancy Woodruff on April 1, 2009 at 7:21pm
Coca Cola's Manual Distribution Centres in Africa may provide local jobs and generate new revenues but their product damages health. Consider what we are now dealing with here in the US with obesity and health care costs and how difficult it is for people to deal with sugar and caffeine addictions, diabetes, nutritional deficiencies, etc. Empty calorie products sold in poor countries are especially damaging to the poor and to sustainability in their countries.

Coca Cola's effort in Africa is an excellent example of the need for those of us involved in "Business Fights Poverty" to address a central question: How important is it to address WHAT a business produces and offers to the poor consumer? And how can this be done?
Olushola Rotim Tobi Comment by Olushola Rotim Tobi on March 25, 2009 at 2:16pm
also integrated to join as regional marketing head.

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