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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

SLB commissions new fluids systems plant in Pemba to support Mozambique’s offshore energy development

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Mozambique

New facility expands in-country drilling and completion fluids capability, advancing the next phase of SLB’s growth in Mozambique

PEMBA, Mozambique, October 9, 2026/APO Group/ –SLB (NYSE: SLB) (www.SLB.com) announced the opening of a new fluids systems plant in Pemba, Mozambique. The new facility strengthens in-country capacity to prepare, store and deliver drilling and completion fluids for offshore operations, reinforcing the infrastructure needed as Mozambique’s offshore activity grows and its role as a strategic energy hub for East Africa continues to expand.

The commissioning of the plant, also known as a liquid mud plant, coincides with SLB marking 70 years of operations in Mozambique. It reflects the company’s long-term commitment to investing in people, infrastructure and capability that support the country’s long-term offshore energy development plans.

 




  

With an initial storage capacity of 21,000 barrels, the liquid mud plant provides a scalable platform for future growth, supporting multiple customers and rising offshore activity while improving logistics and enhancing operational flexibility.

As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions

“As SLB marks 70 years in Mozambique, this investment reflects our confidence in the country’s future and our commitment to supporting its energy ambitions,” said Miguel Baptista, Central, East and Southern Africa, Managing Director, SLB. The new liquid mud plant strengthens local energy infrastructure, expands opportunities for local content development, and enhances our ability to support customers as they deliver some of Africa’s most significant offshore energy resources.”

The liquid mud plant project was delivered with strong local participation and that momentum is expected to continue into operations. During project delivery, more than 100 jobs were created in Pemba with nationals representing 80% of the workforce, reflecting a focus on building local capability.

The project was delivered with a strong focus on safety, operational integrity, and quality, achieving more than 67,000 hours worked without a recordable safety incident.

This key infrastructure strengthens SLB’s ability to support consistent service quality and enhance supply chain readiness for increasing offshore activity across Mozambique, supporting customers execute safely and efficiently while developing local skills and expertise.

Key Points:

  • SLB has commissioned a new fluids system plant in Pemba, expanding in-country drilling and completion fluids capability for offshore operations.
  • With an initial storage capacity of 21,000 barrels, the facility provides a scalable platform to support growing offshore activity in Mozambique.
  • The investment marks the next phase of SLB’s growth in Mozambique, strengthening local capability and supporting long-term offshore energy development.

Distributed by APO Group on behalf of SLB.

 

 




 

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South African Energy Storage Association (SAESA) welcomes 4,600 MW battery storage prioritisation and calls for integrated energy planning

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Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply

JOHANNESBURG, South Africa, October 9, 2026/APO Group/ –The South African Energy Storage Association (SAESA) (www.SAESA.org.za) welcomes the prioritisation of 4,600 MW of battery energy storage under the first Integrated Resource Plan (IRP) 2025 Section 34 determination.

 




  

The timing is significant. Recent Integrated Energy Plan (IEP) modelling and assumptions discussions highlighted a fundamental shift that South Africa’s energy planning now needs to capture: we cannot plan the future power system by counting megawatts of generation alone.

We must plan for when energy is available, where it is available, how it moves through a constrained grid and how it is stored and dispatched when the system needs it most.

The announcement reinforces that shift. Battery energy storage systems (BESS) are becoming critical system infrastructure, supporting flexibility, reducing avoidable curtailment, shifting energy into periods of demand and strengthening security of supply.

For SAESA, the message for the IEP is clear: storage, flexibility and system services must be modelled as integral components of South Africa’s future electricity architecture, with their contribution considered from the outset of generation planning.

“The IEP must plan the power system we are becoming, not simply model the power system we have inherited,” says SAESA.

The IEP must plan the power system we are becoming, not simply model the power system we have inherited

Partnership with C&I Energy + Storage Summit

SAESA is an association partner of the C&I Energy + Storage Summit, created by VUKA Group, taking place on 28–29 October 2026 at The Maslow Hotel, Sandton, Johannesburg.

The summit brings together commercial and industrial energy users, project developers, financiers, regulators and solution providers to explore practical approaches to energy security, procurement and storage deployment.

For businesses assessing how storage can support their operations, the event offers an opportunity to meet SAESA and engage with the wider energy community on the decisions shaping South Africa’s evolving electricity system.

Commercial and industrial energy decision-makers are invited to apply to attend as hosted buyers. Qualifying buyers receive complimentary summit access and curated opportunities to engage with industry partners.

 

Meet SAESA at C&I Energy + Storage Summit: Join the Hosted Buyer Programme

The Hosted Buyer Programme connects commercial and industrial energy decision-makers with solution providers shaping South Africa’s evolving private energy market.

Qualified energy buyers receive complimentary access to the summit and curated engagement with industry partners exploring energy procurement, storage deployment and project development.

Apply for the Hosted Buyer Programme (https://apo-opa.co/4ehLijJ)

Distributed by APO Group on behalf of VUKA Group.

 




 

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Afreximbank welcomes launch of Africa Credit Rating Agency as an important step in strengthening Africa’s financial architecture

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Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets

PORT LOUIS, Mauritius, October 8, 2026/APO Group/ –African Export-Import Bank (Afreximbank) (www.Afreximbank.com) welcomes today’s launch of the Africa Credit Rating Agency (AfCRA), an important milestone in strengthening Africa’s financial architecture and expanding the continent’s capacity to generate credible, independent analysis of African credit risk.

 




 
 

Credit ratings play an important role in determining access to capital, influencing investor perceptions and shaping the cost at which governments, institutions and businesses can finance development. It is therefore essential that assessments of African credit risk are independent, rigorous and evidence-based, while reflecting a complete understanding of the structures, institutions and economic realities being assessed.

The establishment of AfCRA adds an important African-led source of credit opinion to the market. Its value will not be measured by whether it produces more favourable ratings, but by the credibility of its analysis, the quality of its data and transparency of its methodology, and its ability to deepen understanding of African sovereigns, sub-sovereigns and corporate credit.

This is particularly important given that many African issuers remain unrated, while local-currency and sub-sovereign markets continue to have limited rating coverage. Expanding credible rating coverage can improve the information available to investors and support the development of deeper domestic and regional capital markets.

AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans

Alongside fellow members of the Alliance of African Multilateral Financial Institutions (AAMFI), Afreximbank has consistently maintained that African Multilateral Financial Institutions should be assessed on the basis of their fundamentals, performance, legal frameworks, mandates and operating models. Ensuring that these institutional characteristics are properly understood is essential to achieving informed, balanced and credible assessments of African risk.

Commenting on the uniqueness of the African market, and need for AfCRA’s rating methodology to reflect this, Mr Denys Denya, Senior Executive Vice President, Afreximbank, said: “The rating methodology AfCRA develops must recognise the uniqueness of our environment and its institutional structures. The Agency must set its own standards and not follow those set elsewhere — it must build a unique identity that conforms to an ‘African best practice.”

Highlighting the need for the autonomy of the Africa Credit Rating agency as it takes off, Mr Denya added: “Most importantly, AfCRA must set a new benchmark for the continent, maintain its independence, and remain wholly owned and controlled by Africans. We must all use it, and in return expect a complete assessment of where we (Africa) stand: the strengths the market has ignored, and the weaknesses we still need to fix.”

AfCRA should therefore be seen as complementary to existing international and regional rating agencies, broadening the range of credible analysis available to investors and issuers while strengthening competition, transparency and analytical capacity within Africa’s credit markets.

As Africa seeks to mobilise the scale of capital required for industrialisation, trade, infrastructure and economic transformation, credible African institutions that improve information, strengthen market confidence and deepen the continent’s financial markets will become increasingly important.

Afreximbank congratulates the African Union, the African Peer Review Mechanism (APRM) and all those involved in bringing AfCRA from concept to launch, and looks forward to the contribution the Agency will make to deeper, more transparent and more efficient African capital markets.

Distributed by APO Group on behalf of Afreximbank.

 




 

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