PZ Cussons UK says that it will continue its manufacturing operations in Nigeria, Kenyan, Ghana and other Africa.
This was contrary to the company”s exit plan from the continent, last year.
PZ Cussons based its latest decision on improving economic indicators in Nigeria and strong population growth projections across the continent.
The latest decision was reached by the company’s Board in a statement published on its website on Thursday following the conclusion of a review of its Africa operations.
” Nigeria’s population alone is forecast to increase by over 100 million, further benefitting from urbanisation and rapidly growing middle classes.
Recent economic and currency trends have been more favourable, supporting double-digit revenue growth in our Africa business in the first half of the financial year,” said the Board in the statement.
PZ Cussons outlined ambitious growth plans as part of a broader group strategy aimed at balancing its portfolio between developed and emerging markets.
The company said that the strategy is based on the significant long-term opportunity in Africa, where the population is forecast to grow by more than 900 million over the next 25 years, representing over half of total global population growth.
The Board is confident that PZ Cussons is well placed to succeed through leveraging local insights and its brand heritage.
The business will continue to benefit from its scale in manufacturing and route-to-market expertise, particularly in a competitive landscape that has seen a number of multinationals exit the market in recent years.
Nearly 80 per cent of Nigeria’s revenue is generated from brands holding #1 or #2 positions in their categories.
