Frontier Markets: Can Coca-Cola Save Nigeria?

Coca-Cola (KO) is going to invest about $17 billion in Africa, where it already has 140 bottling plants, between the years 2010 and 2020. This news comes from an article in Forbes titled, “Why Coca-Cola is betting big on Nigeria.” According to author Pete Guest, Coca-Cola recently bought a 40% stake in the Nigerian juice company Chi, and hopes to complete the sale over the next three years.

I applaud one of my favorite bellwether stocks in the developing world, but I have to admit that I am not too sure about this move. Nigeria’s GDP growth through 2015 averaged just about 2.5% year over year. Remember, they went

Coca-Cola Takes Stake in Nigerian Juice Maker Chi

Bottles of Coca-Cola are pictured during a presentation in Paris, France, January 19, 2016.

Coca-Cola has bought a 40 percent stake in Nigerian juice and snack producer Chi Ltd, it said on Saturday, as it continues to expand in Africa to tap a young and fast-growing population.

The U.S. drinks giant bought the stake from unlisted TGI Group, the two companies said in a joint statement, but did not disclose the value of the sale.