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Quenching a Thirst – Beverages in Africa

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FMCG

Smollan representing some of the world’s most loved FMCG and commerce brands dips into the types of distribution channels for beverages in Africa

DAR ES SALAAM, Tanzania, November 2, 2023/APO Group/ — 

Africa has a vibrant beverage culture that is evolving at pace. On the one hand, offering a wider selection of drinks that cater to new shopping behaviours, and on the other opening up exciting opportunities for local producers, entrepreneurs, and multinational beverage companies looking to tap into this diverse marketplace.

Smollan representing some of the world’s most loved FMCG and commerce brands dips into the types of distribution channels for beverages in Africa, and a few of the challenges and opportunities that keeps the industry on its toes.

As retailers explore the intricacies of beverage distribution in Africa, this space has experienced significant changes and growth in recent years. To give one a sense of direction, if one looks purely at the alcoholic drinks market in Africa, according to Statista, revenue is set to amount to US$93.24bn in 2023 and expected to grow annually by 7.32% between 2023 and 2027.

Leading up to this, the most notable shifts have been seen in the rise of modern retail formats, such as supermarkets and convenience stores, which have become increasingly popular in urban areas. These retailers offer a wide range of beverage options, including both local and international brands to meet the demands of a diverse consumer base. So too, ecommerce has taken off gaining traction in Africa, enabling shoppers to order beverages online especially beneficial in areas with limited access to physical stores.

Furthermore, there has been a rise in specialised beverage stores and cafes that focus on specific types of drinks from coffee shops offering artisanal brews or traditional teas. It’s all about connecting with customers in new ways by creating unique experiences where enthusiasts can explore different tastes and sensory pleasures and appreciate different beverage cultures.

So how do these new moves to quench a thirst in Africa relate in terms of distribution and the supply chain and what are some of the opportunities and challenges faced within this evolving space?

Warren Brett Cluster Executive, SEA Region, Smollan said, “First and foremost, kudos must go to the wholesalers and distributors, who are the amazing unsung heroes of beverage distribution in Africa. Intermediaries responsible for getting the job done well within the context of fragmented retails networks and complex marketplaces. Working with infrastructure issues, logistics, inadequate cold chain facilities and red tape, they enable and unlock exciting opportunities for growth in this sector.”

Within this unique at times fragile African context understanding the nuances of distribution channels is key to unlocking growth and establishing a strong market presence.

Working with infrastructure issues, logistics, inadequate cold chain facilities and red tape, they enable and unlock exciting opportunities for growth in this sector

DISTRIBUTION CHANNELS

Traditional

These markets play a vital role, especially in regions with limited access to modern retail outlets. The variety at roadside vendors and in village marketplaces, in most instances can be eye-opening – offering locally produced drinks such as palm wine and sorghum beer to bottled water, soft drinks, and alcohol. Where smaller-scale entrepreneurs compete alongside more established multinational brands, making these markets a significant part of the informal economy.

Modern

Supermarkets and hypermarkets have grown significantly, primarily due to urbanisation and evolving customer preferences. These urban retail powerhouses have become a fixture in large cities offering a broad selection that includes soft drinks, bottled water, fruit juices and alcohol plus, premium imported brands. Making these outlets key for global brands to reach consumers. In addition, the convenience of air-conditioned shopping spaces, a guarantee of quality and multiple payment options makes for an attractive shopping experience.

Digital

As access to the internet improves and smartphone penetration grows on the daily, ecommerce and mobile commerce are gaining traction in Africa. These digital platforms offer extensive product selections that are convenient and cater to busy urban lifestyles. Local retails and manufacturers partner with online marketplaces and delivery services to offer fast, reliable fulfilment for consumers plus, payment options from mobile money to credit and debit cards and cash on delivery.

CHALLENGES THAT BECOME OPPORTUNITIES

Right now, global beverage brands and local and regional producers are making significant inroads in various African markets by blending distribution channels to connect with consumers. Furthermore, local players are often keen to invest in local production to create an advantage in price and route to market. Overcoming the challenges to leverage penetration is key for success. If we look at traditional markets, hygiene, quality control and infrastructure are the most common stumbling blocks. While the growth of modern distribution channels has led to increased competition among beverage brands, making price sensitivity a key factor in purchasing decisions. Alongside this, ecommerce channels need to work around issues such as logistics, infrastructure limitations, and trust-related issues in term of payments, delivery, and accessibility.

Distributed by APO Group on behalf of Smollan.

Business

Hainan FTP marks 6-month milestone of special customs operations, signs deals during Hong Kong visit

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Hong Kong

HONG KONG SAR – Media OutReach Newswire – 29 June 2026 – As the Hainan Free Trade Port (FTP) marked the six-month milestone since the launch of its full special customs operations, a Hainan provincial delegation wrapped up a three-day visit to Hong Kong. During the visit, the delegation signed deepened cooperation agreements with several major local chambers of commerce and promoted the latest policies introduced since the island-wide special customs operations took effect.

According to data released by Hainan Province during the visit, Hainan’s foreign trade has surged since the launch of special customs operations. As of June 17, the province’s total goods imports and exports reached RMB 173.98 billion (approximately US$24 billion), up 54.6% year on year. Imports of zero-tariff goods hit RMB 2.645 billion, a 120% jump that generated tariff savings of RMB 440 million. A total of 172,100 new market entities were registered—a 61% increase—including 1,240 foreign-invested enterprises. Zero-tariff items now account for 74% of all tariff lines, benefiting more than 12,000 market entities.

During the Hong Kong visit, China Council for the Promotion of International Trade Hainan Provincial Committee (CCPIT Hainan) signed separate deepened cooperation MOUs with the Chinese General Chamber of Commerce, Hong Kong and the Hong Kong General Chamber of Commerce. Under the MOUs, the parties will establish a regular liaison mechanism for the periodic exchange of economic and trade information, and will promote collaboration in areas including professional services, green finance, the digital economy, supply chain management, and cultural tourism. Mutual enterprise service desks will be set up to provide consulting services regarding policies and projects. The parties will leverage their complementary strengths to help Chinese mainland enterprises access overseas markets via Hong Kong, while facilitating Hong Kong companies’ entry into the Chinese mainland through Hainan.

The delegation also held talks with the British Chamber of Commerce in Hong Kong and the American Chamber of Commerce in Hong Kong, exploring ways for British and American businesses to leverage Hainan’s value-added processing tariff exemptions and multifunctional free trade accounts to position themselves in regional supply chains and cross-border investment and financing. HSBC, De Beers, and other British firms are already active in Hainan, and the UK served as the Guest of Honor country at the 2025 China International Consumer Products Expo.

According to industry analysts, amid the shifting international trade landscape, Hainan is leveraging Hong Kong’s “super-connector” role to accelerate its integration with global capital and business networks, while simultaneously offering the Hong Kong business community a policy testing ground for entering the Chinese mainland market.

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Africa’s Grid Constraints Come into Focus as Regional Markets Push Toward Integration

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Africa

Regional power pools are advancing and renewable pipelines are growing, but the regulatory and financial architecture needed to connect them remains the continent’s most critical infrastructure gap – an issue central to the Power Africa Today conference at AEW 2026

CAPE TOWN, South Africa, June 25, 2026/APO Group/ –Africa’s electricity demand is projected to nearly double to 2,291 TWh by 2050, requiring an estimated $30 billion in transmission and grid infrastructure investment to unlock and integrate new generation capacity. Yet across the continent, grid systems are struggling to keep pace with rapidly expanding supply pipelines and rising demand.

In Nigeria, repeated nationwide grid collapses as recently as February 2026 underscore the fragility of aging transmission infrastructure. In East Africa, tower failures along the 428 km Loiyangalani-Suswa line temporarily stranded output from Lake Turkana Wind Power – Africa’s largest wind installation. Meanwhile, demand growth pressures are accelerating across North Africa, where electricity consumption is expected to rise by around 50% by 2035, driven by urbanization, desalination projects, and climate-related temperature increases.

Despite these constraints, generation investment continues to accelerate across Africa, particularly in renewables, gas-to-power and hybrid systems. However, without equivalent investment in transmission and interconnection, much of this new capacity risks being underutilized or stranded. This growing imbalance between generation and grid capacity is driving a sharper focus on system-wide planning and regional market design – issues that will be central to the newly launched Power Africa Today conference at African Energy Week 2026. The platform will bring together policymakers, utilities, investors and developers to explore how regional interconnection, cross-border trading frameworks and financing structures can better align generation growth with grid expansion.

Power Markets Experiment with Reform

Alongside infrastructure challenges, Africa’s electricity sector is undergoing gradual – but uneven – market reform. Most countries still operate vertically integrated systems dominated by state utilities, but a growing number are introducing competitive frameworks to attract private capital and improve efficiency.

Zimbabwe opened its electricity market to full private participation across generation, transmission and distribution in 2025, targeting $9 billion in new investment. South Africa is advancing one of the continent’s most ambitious grid expansion programs, with plans for 14,500 km of new transmission lines and 133,000 MVA of transformer capacity by 2034, alongside mechanisms designed to crowd in private financing. Kenya, meanwhile, has introduced open access regulations enabling independent power producers to wheel electricity directly to multiple off-takers, reshaping how generation assets interface with the grid.

Interconnected electricity markets are the foundation of Africa’s industrial future

Regional Integration Remains Fragmented

Efforts to connect Africa’s fragmented power systems are progressing, though at different speeds across regions. In Southern Africa, the World Bank’s RETRADE SAPP program, approved in 2025, is deploying $12 million to strengthen renewable integration and transmission capacity across 12 member states. In East Africa, the Ethiopia–Kenya–Tanzania Electricity Highway is now in trial operations at up to 2,000 MW, marking a significant step toward a more interconnected regional grid.

West Africa is also moving toward deeper integration, with permanent synchronization of the West Africa Power Pool expected in 2026. Analysts, including the African Finance Corporation, argue that such synchronization is critical to unlocking large-scale hydropower potential and industrial demand across the region. Longer term, full synchronization between the Eastern and Southern African power pools – targeted for the end of 2026 – could create one of the world’s largest cross-border electricity trading corridors.

Building Bankable Financial Architectures

While interconnection is advancing, infrastructure alone is not enough to create investable electricity markets. Investors consistently cite the lack of standardized offtake structures, creditworthy counterparties, and cross-border payment guarantees as key barriers to scaling capital deployment.

New models are emerging to address these constraints. Africa GreenCo, operating across Zambia, Namibia and South Africa, is helping to aggregate independent power producers under a single creditworthy intermediary, standardizing power purchase agreements and reducing counterparty risk. At a broader level, AUDA-NEPAD estimates that Africa requires around $30 billion in additional investment to complete priority transmission corridors and establish three fully interconnected regional trading blocs by 2030.

“Interconnected electricity markets are the foundation of Africa’s industrial future,” said NJ Ayuk, Executive Chairman of the African Energy Chamber. “The question at Africa Energy Week is not whether integration is possible – the evidence is already there. The question is which regulatory frameworks and financial structures will get projects to financial close, and which markets will be ready when capital is looking to move.”

The Power Africa Today conference will run alongside AEW 2026, taking place October 12–16 in Cape Town, and will focus on the regulatory, financial and infrastructural architecture needed to build interconnected electricity markets capable of attracting institutional capital and delivering reliable, cross-border power at scale.

Distributed by APO Group on behalf of African Energy Chamber.

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African Development Bank Group and La Francophonie Sign Partnership Agreement to Promote Youth Employment in Francophone Africa

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The agreement was signed during a meeting between the Secretary General of La Francophonie, Louise Mushikiwabo, and African Development Bank Group President, Dr Sidi Ould Tah in Paris, France

PARIS, France, June 25, 2026/APO Group/ –The African Development Bank Group (www.AfDB.org) and The International Organization of La Francophonie (OIF) on Wednesday entered a strategic partnership to strengthen digital skills, employability, and entrepreneurship of young people and women in five African countries: Benin, Cameroon, Guinea, the Democratic Republic of the Congo and Madagascar.

 

The agreement was signed during a meeting between the Secretary General of La Francophonie, Louise Mushikiwabo, and African Development Bank Group President, Dr Sidi Ould Tah in Paris, France. The agreement will address a major challenge faced by countries in the Francophone world and across Africa: providing young people with access to opportunities offered by the digital economy and fostering the emergence of a new generation of entrepreneurs.

The partnership calls for the implementation of training programs in digital professions and entrepreneurship, in fields such as web and mobile development, cybersecurity, artificial intelligence, and data analysis. Participants will also receive guidance toward employment and self-employment, as well as support for innovation and business creation, notably through training camps, prototyping activities, and partnerships with incubators and accelerators.

The African Development Bank Group and OIF will also work with national authorities in these five countries and training institutions to sustainably strengthen local capacities and promote ownership of the programs by national stakeholders. An initial pilot phase, lasting 12 to 24 months, will be rolled out in the five partner countries, followed by a gradual expansion to other member states depending on the results achieved.

The African Development Bank Group is pursuing a bold agenda based on “Four Cardinal Points” developed by Dr Ould Tah, the third of which is ‘Turning Demographics into a Dividend.’ This is about strategically converting Africa’s rapidly growing and youthful population into a decisive engine of inclusive growth, productivity, and innovation through large-scale investment in human capital—particularly youth and women.

 

It sees Africa’s growing young population not as a risk, but as a major asset. With the right policies and investments, this potential can create jobs, help small businesses grow, bring more informal businesses into the formal economy, and equip young people with the skills needed for the future. By investing more in education, science and technology, vocational training, entrepreneurship, finance, and digital tools, Africa can help its people drive economic transformation, stay competitive, and build lasting, resilient growth.

The OIF said the agreement marked the first concrete step in its initiative to mobilize innovative and additional funding for its most impactful projects.

Distributed by APO Group on behalf of African Development Bank Group (AfDB).

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