Africa and Fruit Juice – the perfect blend

The global tropical fruit juice market has been exhibiting strong growth in recent years but is plagued by unreliable supply from the major exporters in Latin America and Asia. Countries such as Ecuador and India are vulnerable to adverse weather and annual climatic variations. In contrast, many locations in Africa such as the Upper Awash valley in Ethiopia offer climatic conditions that are close to optimum for growing tropical fruits due to their consistent climate and long hours of sunshine which can give almost uninterrupted year round reliable production of quality fruit.

However, unlike Latin America and Asia, Africa has not benefited from the strong global growth in demand for tropical fruits due to a lack of investment. This is despite the fact that most African countries, including Ethiopia, are signatories to the Multi-lateral Investment Guarantee Agency (MIGA) convention which provides international norms for the protection of foreign investment. They also offer attractive tax regimes and good import and export arrangements, facilitating the investment of foreign capital.

Another key driver for establishing our business in Africa is affordable access to the key resources required for our business such as labour, land and water which delivers a lower cost of operations relative to other existing production locations, such as Latin America. Our fruit juice products from Africa also have a tariff free access to the EU market under the Generalised System of Preferences (GSP).

Countries such as Ethiopia are therefore attractive locations in relation to our target markets of Europe and the Middle East and create highly competitive production bases.