South African Company, Clover Industries (Clover) has announced that it will no longer invest in Nigeria due to the financial crisis caused by the fallen oil price.
“The current financial crisis experienced in Nigeria which is fuelled by the low oil price is a further cause of concern, thus the group has decided to withdraw from future investments in Nigeria,” Clover said in a statement.
“It’s a sad decision but until the currency crisis is resolved we wont be able to invest in there any further,” Chief Executive Johann Vorster told Reuters.
Clover, established in 1898 is a branded foods and beverages Group, that produces and distributes (for itself and other FMCG companies) a diverse range of dairy and consumer products through one of the largest chilled and most extensive distribution networks in Southern Africa.
The company had planned to invest about $6.43 million in developing products in Nigeria, but instead will continue to expand operations in other Southern African countries – Botswana, Namibia, Lesotho and Swaziland.
Clover produces a wide range of poducts, some of which include – Tropika, Clover Krush, Clover Life Nectar, Aquartz Mineral Water, Nestlé Pure Life, Milo, Nestea Ice Tea, Manhattan Ice Tea, Super M Flavoured Milk, Quali Juice.
South African retailer Truworths last month has also decided to exit Nigeria because of the government’s import restriction policy.
The Central Bank last year banned access to forex from its official window on the back of a forex policy that was aimed at curtailing “irresponsible demand”. Also citing high rental cost as another reason for pulling out.
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