Despite two recent Executive Orders signed by Vice President Yemi Osinbajo, to improve the Ease of Doing Business in the country, more multinational corporations have continued to move fresh investments to other economies considered safer than Nigeria.

The latest move came from Coca Cola, a leading non alcoholic beverage bottler, which would be investing almost $90 million in Kenya, as part of its Africa expansion drive.

The company said the investment is to span over three years through 2018 and aims to increase its product range in the region.


In a statement on Tuesday in Nairobi, the company said the wider range of soft drinks in the country would begin in 2018, although it failed to give details of the range of products.

Coca-Cola, which is the leader in the Kenyan soda market with brands like Coke and Fanta, said it had invested a total of $17 billion in Africa since 2014, an amount that doubled what was invested in the continent a decade before.


The group, however, faces growing competition in Kenya from other soft drinks producers like SABmiller and PepsiCo.

Regrettably, the promise of Africa’s biggest economy has turned to peril with companies drawn to Nigeria by the prospect of a population bigger than Germany and Turkey’s combined are retreating; and foreign investors are pulling their money out.


“Our clients, Fortune 500 and other multinationals are all quite concerned by the state Nigeria finds itself in,” said Alexa Lion, a senior analyst at Washington-based Frontier Strategy Group, which advises companies looking at developing nations. “Sentiment has worsened. There’s a lot of anxiety.”

Recall that after four years of trying to gain traction, Truworths International Ltd., a South African clothing retailer, gave up in 2016. It closed its last two outlets in Nigeria, in the southeastern cities of Enugu and Warri. Not willing to tolerate Nigeria’s dilapidated infrastructure, complicated red tapism and expensive rent, the company said import and foreign-exchange restrictions caused it to throw in the towel.

“We were happy to lose money for a few years while we developed the business and opened new stores,” Chief Executive Officer Michael Mark, had said in an interview.


“The straw that broke the camel’s back was not being able to get stock into Nigeria. You can’t have a clothes shop with no clothes. With all the other things, it just wasn’t worth it. It was impossible to do business.”

http://www.akelicious.com/2017/10/nigeria-loses-90m-investment-to-kenya.html

Nigeria is a failed state. Restructuring is the only way out of the mess we find ourselves.

so bad.....that foreign investors are pulling away cos of minuscule reasons like 'dilapidated infrastructure'. like seriously, our infrastructural development is bad, I wonder how companies thrive in this country with our epileptic power supply , that one alone is a major setback.

I've lost count of companies that left the country with tail between their legs cos of 'ease of doing business' , we're 169th in the rank; far lower than many African countries . a company even said they're happy to lose money for a few years while they developed and opened new stores, but after opening new stores nko? they vamoose.

why God gave us oil is still a mystery to me, haba! to get "oyel" na curse? "oyel" came and our bunch of clueless leaders lost their senses.

industrialize the country, na wash. build infrastructure, na wash. give us stable electricity, na rocket science. ok, create a business-friendly environment, no gobe. which kyne wahala be this ntori oloun?

I was about to state the headline was misleading until I got to the part of companies leaving because of fx among other issues...

potential investors are being put off by the way this government 'carries' itself. there is this arrogant aura prevalent, but that is not even the problem, the problem is that in its arrogance, the government knows nothing, has no direction, no feasible plans...

all its actions taken are designed for propaganda effect. there is no genuine desire to develop the country, just actions that scream 'look at us, we are working', when in reality, nothing is been done.

PMB needs to really take a step back & look at the social destruction he has brought to Nigeria.

he then needs to use the rest of his term to reconcile all, apologise for his divisive comments, listen more to the cries of discontent, expand friendships & generally right the wrongs he has committed in the last 2+ years...

9ja...even if them win am its of no use to the civilians

Who would want to invest in such a confused, melancholy place?

This is a bad news for Nigeria, with foreign investors leaving, our revenue will also reduce.

Nigeria can not resist borrowing to sustain the govt
as such, high debt profile for the govt and i believe the next govt will leave it for the next govt.


just like what king Louis XI of france said "[the revolution] will not happen in my rule" 17th century.


Also this is a good news to our young entrepreneurs in the country, less competition. But are they ready?

Even if the conditions and policies are favorite, companies with always want to explore in opportunities to expand and spread their tentacle.

Bia ooo, wait. Are you saying that ehmmmm.... Wait. No coke again.
You people should stop running ooo. Na all of una follow destroy Nigeria. Things are now hard but you forgot how during fuel scarcity, price of coke will increase and will not come down when fuel is released. Now you are looking for greener pastures after turning Nigeria to a desert. I don't blame you sha. Na we just dey fall our hand anyhow. Black men will ever learn that white men are just opportunists. Only going to where they can gain and using it till there is nothing left for the next decade.... Na to begin sell zobo. Okwa the new big thing.

Ripple effects of Bubu and his nonsense stringent polices, plus his support and lack of condemnation of his Fulani brothers

God have mecry u always read Nigeria loses Nigeria loses..... When will I start reading the opposite naw

Not every piece of investment must come to Nigeria na. You win some and you lose some.

With this terrorists in government, what do we expect?

From what I read, so Kenya is safer than Nigeria

Sensational dumb headline by stupid bloggers to make wailers wail even more. Because they only read headline or read but don't comprehend.

If coca cola decides to expand its operation in kenya, how does that affect nigeria exactly?

You mean coca cola should not expand its operation anywhere in africa again? Everything should just be nigeria?

Why is south africa or other big economy not crying about coke expanding its operation kenya?


Is coca cola moving out of nigeria or plans to move out of nigeria? Cos I don't get why bloggers like being mischievous, and why nairaland mods decide to indulge these bloggers?

My Nigeria where the people that have ruled us Since independence are still in power. Grandparents that have defrauded and financially wrecked our nation without the fear of God, These old men have no shame at all. No light, no good roads, no health care for the less privileged Just Churches, Churches that can't even provide basic amenities for it's Host Community. It's sad

What do you expect from a country with a failed policy... Ease of doing business almost nil... Over sabi should quote me o... #PEACE...

But there is one stupid man saying we are exporter of yam. I was laughing. Who eat yam abroad. APC govt is sick.

Coke?

No be to dey take our money dey buy diabetes?

If it was an automaker or silicon valley company like Compaq or HP now, I for cry small. Not companies that will produce what we will buy and they make profit and carry it away. Job creation nonetheless, I feel we need investors who can help us produce what will earn us FOREX.

Meanwhile, is there any part of the post that said the investment was meant for Nigeria but was diverted into Kenya?

The reporters cleverly wove a "story" by quoting an SA firm (like we need more of those) importing clothes into Nigeria (how they hope to compete against Aba, I have no idea) closing shop and crying sour grapes.

I can bet my bottom dollar that had nothing to do with Coca-cola investing in Kenya.

And naija coke bottle mouth na hell

with coca cola available in every nook and cranny all over Nigeria do they need to build another plant here?
investments for normal people are made for economic reasons and not political/sentimental reasons like spending millions of dollars looking for oil
stupid sensational headline

No b dier fault, as Nigerians don dey go Kenya, dem wan go serve Nigerians for Kenya.

Gradually-decaying Nigeria.

And somebody will still say Sai buhari, buhauri is working and fighting corruption.
Somebody is fighting for his dear life, una dey deceive una self for here.

Why is Obasanjo keeping quiet.

Bad market re o

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Sall:
Nigeria is a failed state. Restructuring is the only way out of the mess we find ourselves.

restructing solves corruption, bribery, looting, inflation of contract, nepotism, tribalism abi. Mtcheeew

Nobody will put 90 million dollars into the Nigerian economy with the uncertainty Buhari keeps stirring with his meaninless and lack of purpose bad leadership ..We need leaders with vision and not someone with a thing fro destruction instead of building ...I wasnt a fan of Jonthan then but under his govt coca cola made its Nigeria West African office a priority over the Kenyan regional office then .

Useless headline..... How does expansion of cocoa cola in Kenya affect Nigeria..... Were u expecting them to invest the money in Nigeria and then exporting cocoa cola to Kenya?

What is.$90m. A politician eirll steal it.in.one gulp

This post is misleading it didn’t say why Coca Cola is leaving but trusworth or whatever they’re called I don’t care if they live we’ve too much clothing lines already is best we develop our clothing industry by giving local players room and not competition not from the like of SA we already have MTN and Multi choice that’s more than enough investment for SA.
Coca Cola are solid in Nigeria and don’t need to pump in 90million to do increase popularity Kenya is small and have a lot of competition as the article says. Apart from Pepsi co who’s a major contender in the soft drink industry in Nigeria.

Bloody post to rubbish a weak government

Let d executive order automatically improve power and infrastructures na... Though Coke clearly and obviously has no competition in d Nigerian market and can actually afford not to expand and improve on its coverage with d likes of Pepsi doing sitdown look sha. Dat being said investors are still afraid of doing business here and many are relocating to neighboring countries