The company will spend this ZAR 2bn (CHF 170m) fund on production facilities, and will focus on Nestlé’s creamers, coffee, nutrition and confectionery products.
It will include capacity building, general capital refurbishment, biomass boilers and converting the Mossel Bay dairy factory (which produces milk powder) to water-neutral status.
Capacity for the coffee factory in Estcourt, Kwa-Zulu Natal will be increased, with the aim of creating a coffee hub for the region.
'We believe in the diversity of South Africans' - Nestle
“Our long-term presence in this region, our understanding of our consumers and our many investments and initiatives are a clear illustration of our commitment to this country,” a Nestlé South Africa spokesperson told this publication.
“As a company that has built its business around sustainability and growth, we believe the diversity of South Africans, the favorable demographic and economic growth trends and the conducive business environment will ensure South Africa continues to attract investments such as this ZAR 2bn announcement," they added.
South Africa is Nestlé’s second biggest market in Africa, after the central west African region.
The company says the five year investment plan will contribute significantly towards rural development in the country - for example, the coffee hub could potentially create further jobs - and enhance Nestle's operations via increased efficiency and capacity.
Ian Donald: Extensive experience in emerging markets
Ian Donald succeeds Sullivan O’Carroll, who will retire at the end of September.
A South African citizen who has been with Nestlé for more than 40 years, Donald has particular experience in emerging markets. Prior to his return to South Africa, he was market head for Nestlé in the Equatorial African Region, where he was responsible for 21 countries.