Kraft Heinz plans to invest E£920m ($57.6m) in Egypt over the next five years. The investment includes 14 new production lines to meet both local demand and to service export markets in the Gulf region and in Africa.
Kraft Heinz has already reportedly invested E£257m ($16.1m) in Egypt. As part of the GAFTA (Greater Arab Free Trade Area) trade block and COMESA (Common Market for Eastern and Southern Africa), Egypt has established itself as an important export hub for FMCG manufacturers including Mars, PepsiCo and Danone. Around 20% of its Egyptian production is exported, either to the Gulf or to African markets.
In March 2018, we reported that Mars Wrigley Egypt had completed a $42.5m expansion to its chocolate manufacturing plant in Cairo to help it reach a growth target of $100m in additional exports to Africa and the Middle East.
In January 2019 Lactalis acquired major dairy company Greenland Group for Food Industries from Americana Group through its joint-venture operation, Lactalis-Halawa.
In February 2020 the European Bank for Reconstruction and Development (EBRD) offered a $100m to Saudi dairy and soft drinks company Almarai to finance expansion in Egypt and Jordan. The funds will be used to increase production capacity for its Beyti (Egypt) and Teeba (Jordan) subsidiaries.
In June 2020 PepsiCo announced plans to invest nearly $100m into Egypt. Overall, the company plans to invest $515m between 2018 and 2021 into its most important market in Africa. PepsiCo will expand the production capacity at subsidiaries Pepsi Cola Egypt and snacks manufacturer Chipsy for Food Industries, which it acquired in 2001.