Image : Coca-Cola Vice President for East and Central Africa Alfred Olajide

• Coca-Cola generated US$3.6 billion in economic value, equivalent to 0.3% of COMESA’s GDP.
• Regional supplier procurement reached US$1.5 billion, supporting extensive manufacturing and agricultural value chains.
• Coca-Cola supported over 458,200 jobs, with each direct job sustaining 28 additional jobs.

Harare, Zimbabwe – Coca-Cola contributed an estimated US$3.6 billion to the economies of the Common Market for Eastern and Southern Africa (COMESA) in 2024, supporting more than 458,200 jobs and spending nearly US$1.5 billion on regional suppliers, according to findings unveiled at the 19th COMESA Business Forum in Harare on Tuesday.

The figures, presented by Coca-Cola Vice President for East and Central Africa Alfred Olajide, place the beverage manufacturer’s contribution at approximately 0.3% of COMESA’s combined Gross Domestic Product (GDP). However, the US$1.5 billion procurement expenditure presents an equally consequential economic finding, demonstrating the scale of industrial demand generated by multinational supply chains in a region where trade between member states accounts for less than 7% of total merchandise exports.

The findings emerged from a socioeconomic impact assessment conducted by global consultancy Steward Redqueen, which examined Coca-Cola’s operations alongside its network of bottlers, suppliers, distributors and retailers. The study illustrates how a multinational manufacturer’s economic contribution extends beyond direct production into agriculture, packaging, logistics, distribution and other supporting industries.

For COMESA, the significance lies in the relationship between corporate procurement and industrial development. Large manufacturers create recurring demand for intermediate goods and services, providing potential markets for domestic producers that might otherwise struggle to achieve commercially viable production volumes.

Yet the bloc’s trade performance exposes the limitations of regional integration. According to COMESA, intra-regional exports reached approximately US$14 billion in 2024, compared with US$202 billion in total exports to the world. The disparity indicates that member economies continue to direct the overwhelming majority of their merchandise exports outside the bloc despite decades of regional trade liberalisation.

Coca-Cola’s procurement figures therefore illuminate both the opportunity and the challenge. Its expenditure demonstrates that substantial purchasing activity already exists within the region, but the study does not disclose the proportion sourced across national borders, the distribution among member states or the share captured by smaller enterprises. Procurement from businesses located within COMESA cannot automatically be classified as intra-regional trade.

This distinction is critical because the economic benefits of multinational investment depend partly on how deeply domestic firms are integrated into production networks. A manufacturer sourcing agricultural inputs, packaging materials and logistics services locally creates a broader domestic economic transmission than one heavily dependent on imported inputs. However, deeper localisation must also remain commercially competitive rather than impose additional costs that undermine production efficiency.

For Zimbabwe, the findings come as the country seeks to expand manufacturing exports and strengthen its position within regional value chains.

ZimTrade data shows that Zimbabwe exported US$222 million worth of goods to COMESA in 2025, representing a 10.4% increase from US$201 million in 2024. Despite the recovery, regional exports accounted for only approximately 2.3% of Zimbabwe’s US$9.71 billion total merchandise exports, highlighting the relatively limited contribution of COMESA markets to the country’s export earnings.

The composition of Zimbabwe’s export growth reveals a deeper structural challenge. Value-added exports increased by 30.6% to US$571 million in 2025, compared with US$437 million in 2024. However, their contribution to total merchandise exports remained broadly unchanged at approximately 5.9% in both years. This suggests that while processed exports are growing, they have yet to materially alter the country’s overall export structure, which remains heavily influenced by primary commodities.

The manufacturing sector presents a similar contrast between improving activity and underlying structural constraints. According to the Confederation of Zimbabwe Industries, manufacturing output expanded by 13% in 2025, while capacity utilisation improved to 55.9% from 52.3% in 2024. Despite the recovery, manufacturers continued to operate significantly below installed production capacity, with infrastructure reliability, financing costs and dependence on imported raw materials remaining major competitiveness challenges.

These indicators sharpen the relevance of Coca-Cola’s regional procurement footprint. Zimbabwean manufacturers have potential opportunities in sugar processing, packaging, agricultural inputs and logistics, industries closely associated with beverage production and distribution. Existing industrial capacity could provide a foundation for greater participation, but converting that capacity into supply contracts depends on competitive pricing, quality certification, consistent delivery and dependable infrastructure.

The financing constraint is particularly significant. Smaller manufacturers may possess the technical ability to supply large corporate buyers but lack the working capital to purchase inputs, maintain inventory or finance production before receiving payment. Supply chain financing, invoice discounting and credit facilities supported by verified purchase orders could improve their ability to fulfil larger contracts without requiring substantial upfront capital.

Such interventions would be more effective when accompanied by stronger supplier development programmes that improve product standards, traceability and production reliability. The objective should be to create commercially sustainable suppliers rather than increase local procurement through administrative requirements alone.

Meanwhile, Coca-Cola’s employment footprint demonstrates the broader economic linkages associated with its operations. The study estimates that every direct job within the Coca-Cola system supports an additional 28 jobs across the regional economy, contributing to the more than 458,200 jobs supported through its activities and value chain.

These figures require careful interpretation. The employment estimate represents direct and indirect jobs supported, rather than newly created positions during 2024. Similarly, the US$3.6 billion economic contribution measures estimated value added across the wider economy, not Coca-Cola’s direct revenue. The assessment employed a Multi-Regional Input-Output model to estimate these effects.

Speaking in a statement accompanying the findings, Olajide emphasised the role of the company’s broader commercial network.

“The Coca-Cola system operates as a critical economic engine across the COMESA region, empowering local suppliers, retailers, and distributors to thrive,” he said.

The findings place a measurable economic dimension on COMESA’s industrialisation ambitions, particularly as member states seek to strengthen regional value chains and reduce barriers to investment and cross-border commerce.

For Zimbabwe, the policy implication extends beyond attracting additional multinational investment. The more immediate opportunity lies in improving the ability of existing manufacturers to compete for corporate procurement contracts, expand regional sales and increase the value retained through domestic production.

Coca-Cola’s US$1.5 billion supplier expenditure demonstrates the purchasing power embedded within established multinational operations, but it does not establish how much of that opportunity Zimbabwean businesses currently capture. That is the critical missing measure. For COMESA, the success of industrial integration will ultimately be determined less by the size of multinational economic footprints than by the proportion of their supply chains that regional industries can competitively serve.

- Equity Axis News