Can PepsiCo Inspire Sustainable Development in Africa?

In late August, the Stockholm International Water Institute (SIWI) awarded PepsiCo the Stockholm Industry Water Award here at World Water Week. The ceremony summed up the mood here among the 2500 delegates from 43 countries: ominous warnings about the world’s impending water crisis with an air of cautious optimism. SIWI awarded the prize to PepsiCo for the company’s overall improvement in water efficiency by 20 percent per unit of production four years ahead of its 2015 goal. PepsiCo also conserved 4.2 billion gallons of water last year and saved $45 million in water and energy costs last year. So can PepsiCo take that experience and thrive in one of the most water stressed continents on the planet?

PepsiCo plans on expanding its operations in Africa this coming decade. In an interview with Sanjeev Chadha, head of PepsiCo’s operations in the Middle East and Africa, he explained why Pepsi is bullish about its prospects in Africa despite the region’s reputation as a difficult and contentious place in which to both conduct business–and he was adamant that the company can maintain sustainable development and operate responsibly.

“Africa is the new Asia,” Chadha said to me as we started our chat as the day’s sessions winded down. The macroeconomic factors certainly support his optimism. Take Africa as one entity, and you have a billion people contributing to a trillion dollar economy. Economic growth is certainly impressive compared to much of the world, with an overall rate at five to six percent annually.

Read more about sustainable development in Africa on Triple Pundit.