Localisation of NESCAFÉ coffee mixes at Nestlé Babelegi helps support economic development and job creation.
Nestlé South Africa announced its investment in localising the production of NESCAFÉ coffee mixes (namely the NESCAFÉ Gold range, which includes Cappuccino Original, Cappuccino Original Reduced Sugar, Cappuccino Salted Caramel Latte, Cappuccino Vanilla Latte, Cappuccino Hazelnut Latte, and Cappuccino White Chocolate) and NESCAFÉ RICOFFY 3in1, marking a significant milestone in the company’s commitment to meeting local market needs and supporting economic development.
On 18 July 2023, coinciding with Mandela Day, Nestlé inaugurated the coffee mixes manufacturing plant in Babelegi, Hammanskraal, showcasing dedication to employment creation, community upliftment and economic development.
“We are excited to officially open our NESCAFÉ coffee mixes manufacturing plant and demonstrate our dedication to the local market,” said Carl Khoury, Business Executive Officer, Coffee and Beverages at Nestlé East and Southern Africa Region. “The importance of revitalising South Africa’s manufacturing sector, including its contribution to the economy and export promotion, is emphasised in key national policies such as the Reconstruction and Recovery Plan. We take pride in our investment in this production plant as it reflects our dedication to nurturing the potential of the region and contribution to rebuilding the economy.”
Speaking at the inauguration, Brian Soldaat, Director Investment Promotion (Agri-Processing) from the Department of Trade, Industry and Competition of South Africa emphasised that, “Nestlé’s investment supports the growth of the local economy by localising production, this sets a positive example for the industry, showcasing the importance of collaboration with local communities, economic development, and sustainable business practices.”
Nestlé’s significant investment of R79 million towards the production plant demonstrates its strong commitment to the region, powering positive economic impact. Through the new manufacturing plant, Nestlé has empowered individuals with valuable skills and created a sustainable source of income by creating 27 new employment opportunities in engineering and production. This opportunity has helped 19 men and 8 women, 67% of whom are from the Hammankraal area, gain employment. Of the 27 employees, 24 are employed in production and 3 are based in engineering. Notably, this initiative was led by an all-women start-up team, aligning with Nestlé’s objectives of promoting job creation, fostering diversity,
Speaking on the impact within the community, Cllr Hannes Coetzee, MMC of Economics Development for the City of Tshwane, emphasised, “this plant, made possible through the project capital investment towards local production, not only guarantees the production of exceptional coffee mixes but also uplifts our community. The investment was spent on procuring machines and equipment, training our local workforce, conducting production trials, and benefiting the City of Tshwane through local procurement of services providers, which played a crucial role in the successful completion of the project. With 46% locally sourced ingredients, Nestlé supports the growth and development of the local economy while ensuring the coffee mixes meet the highest standards. This commitment to community upliftment strengthens our community, both economically and through the provision of exceptional products.
Nestlé’s investment in localising production exemplifies its commitment to building strong partnerships with local communities, fostering economic development, and embracing technological advancements. By producing locally, Nestlé aims to streamline supply chain operations, reduce environmental impact, and ensure fresher products for consumers.
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