Nestlé reorganises its business in Sub-Saharan Africa to cut costs

  • Written by  Food Bev

Nestlé has announced it will restructure its business in Sub-Saharan Africa and close a regional head office in Kenya as it aims to ensure it “continues on a healthy growth path” in the continent.

The company said that as of 1 August 2018, the Central West Africa Region (CWAR) will become a key market. Angola and the Democratic Republic of Congo, currently part of the Equatorial Africa Region (EAR), will join CWAR.

Nestlé will also expand the Southern African Region (ZAR) to include the Horn of Africa, Southern, Eastern and Island clusters of EAR. The new, enlarged region, headquartered in Johannesburg, will be renamed the Eastern and Southern African Region (ESAR).

In a statement, Nestlé said: “Our team in EAR has done a tremendous job, but after trying for nearly ten years we can no longer sustain the cost of the regional head office with the size of the business there.

“So, we plan to close the office at the end of July, redistributing the responsibilities between the head offices of the two other regions on the continent in Accra and Johannesburg.”

It added: “We understand this is unsettling for those employees affected. We will strive to minimise the impact of the changes, holding consultations with them to achieve this. We are very grateful for their contribution to the growth of our business in Sub-Saharan Africa and will do our utmost to give them strong support through this process.”

The company stressed employees who work in offices, consumers, customers and wholesale partners across EAR will not be affected by the closure of the regional head office.

In its most recent quarterly results, Nestlé recorded high single-digit growth in Sub-Saharan Africa.

The announcement comes the same day as Nestlé revealed it may eliminate up to 500 information technology positions in Switzerland over the next 18 months as it shifts work to other sites in Spain, Portugal and Italy.

Login to post comments
back to top

BEAMED BC-TV

Latest on Economy

Economy

Mozambique to host 12th U.S.-Africa Busi…

14 March, 2019 | Hits:2581

Johannesburg, South Africa (ADV) – Mozambique is s...

Economy

Aliko Dangote named richest person in Af…

05 March, 2019 | Hits:2886

Aliko Dangote, the Nigerian businessman and Presid...

Economy

Expert: Small fragmented African airline…

28 February, 2019 | Hits:2824

Like it has been the case in previous years, the g...

Economy

SKA infrastructure design complete

28 February, 2019 | Hits:4125

South African Science and Technology Minister Mmam...

Economy

Kenyan and Chinese firms secure geotherm…

28 February, 2019 | Hits:1143

Ethiopian Electric Power (EEP) has signed a deal w...

Economy

South Africa stimulus package to create …

28 February, 2019 | Hits:1640

Transport Minister Blade Nzimande has announced a ...

Economy

eSwatini is facing an unprecedented econ…

28 February, 2019 | Hits:1272

eSwatini’s economy probably contracted in 2018 and...

Economy

80% of women in low- and middle-income c…

27 February, 2019 | Hits:1068

80 per cent of women in low- and middle-income cou...

Economy

South Africa - India trade relations dee…

27 February, 2019 | Hits:1121

Two KwaZulu-Natal companies are on a mission to ex...

Economy

Closing Africa’s financing gap

27 February, 2019 | Hits:1178

Toward the end of 2018, the United States merged e...

Economy

First China-Africa economic, trade expo …

27 February, 2019 | Hits:1282

At least 1,000 African guests and traders will att...

Economy

Ethiopia moves to boost ease of doing bu…

27 February, 2019 | Hits:1064

Ethiopia continues to work towards improving ease ...

Economy

US $7bn to be injected into infrastructu…

27 February, 2019 | Hits:1126

South Africa is set to commit US $7bn over the nex...

Economy

Mozambique, Soliridad Southern Africa in…

26 February, 2019 | Hits:1118

The National Institute for Standardization and Qua...

Economy

Mozambique, Soliridad Southern Africa in…

26 February, 2019 | Hits:1206

The National Institute for Standardization and Qua...

Economy

Ethiopian Airlines to operate all-female…

26 February, 2019 | Hits:1058

Ethiopian Airlines has announced that it has final...

Economy

Africa: The first African Digital Rail S…

26 February, 2019 | Hits:1161

Cape Town, South Africa, 25 February 2019 - "Afric...

Economy

Tech startups in Sub-Saharan Africa to g…

26 February, 2019 | Hits:1040

Tech startups from Sub-Saharan Africa markets to g...

Economy

IFC invests $15 million in Comoros telec…

25 February, 2019 | Hits:1156

International Finance Corporation has made its fir...

Economy

MafAfrique to invest $7 Million in Tanza…

25 February, 2019 | Hits:1231

Advisory and fund management group, MafAfrique, ha...

By Category

Local News

User Menu

About Us

Follow Us