Clover invests R7m in African expansion drive

Clover South Africa is starting to see returns on its investment after making an initial R7 million outlay in a bid for success on the African continent, according to a company spokesman. The dairy and fruit juice manufacturer’s West Africa branch has enjoyed a positive start since it jointly launched Tropika with New Age Beverages in Nigeria last December. The spokesman, who did not wish to be named, said Tropika was doing “very well” and owed some of its success to the growing presence of the Shoprite group on the Continent. He added that trading in Africa was much more difficult than doing business in South Africa and milk products, for example, cost double in Nigeria compared to this country. However, Clover South Africa, which is listed on the Johannesburg Securities Exchange, has adopted a patient stance to its expansion plans in Africa and was not discouraged by the negative results from its foreign operations in its interim balance sheet released in March. While Clover West Africa is pushing the latest expansion drive into Africa, the company already invested more than R3 million in 2009 in Zambia to set up a processing and distribution hub for the southern half of sub- Saharan Africa.