AfricaPress-Tanzania: ZANZIBAR government yesterday reaffirmed its resolve to expel Coca-Cola Company over failure to honour the investment agreement.
“They have to give way for other serious investors,” Attorney General (AG) Said Hassan Said told the House of Representatives, hinting that the government had written over 20 letters to the adamant investor.
He accused the bottling company of stopping production and turning the factory facilities into warehouses.
“Coca-Cola has long ceased to produce and instead turned the factory into storage facilities,” charged the AG.
Mpendae Representative Mohammed Said Mohammed cautioned the government against frustrating investors, describing the trend as highly dangerous for the country’s economic prospects.
“Let’s not violate our own legislations; we will scare away investors and this doesn’t augur well for our future, economically,” charged the representative, asking whether the government was ready to go into arbitration with the estranged investor.
The AG assured that the government doors were wide open for any available option for the benefits of both Zanzibaris and investors.
The revolutionary government had directed the bottling factory to officially close its business in the Isles after prolonged idleness due to disagreements over operational conditions.
Mr Hassan informed the House that the Coca-Cola management had been operating contrary to their licence, saying the only feasible solution was to kick them out.
He said it was unfortunate that the management of the factory, the world’s largest soft drinks producer, had not been open to Zanzibar, prompting authorities to end relations despite it employing many Zanzibaris during its operation.
Statistics on its production and employment were not readily available but backbenchers had expressed keen interest to have the factory resume production because it also employs youths.
Over 40 per cent of Zanzibar’s imports include soft drinks, mainly from Dar es Salaam and the United Arab Emirates (UAE).
Few local investors have recently started production of soft drinks and mineral water for the domestic market.
