Stanbic Bank backs PepsiCo’s EA growth with $45M funding

• Since 2020, the Standard Bank Group has supported CBL’s modular expansion and further demonstrated its commitment by advising and funding the acquisition of SBC Kenya by CBL’s shareholders in 2023.
• The funding is expected to boost manufacturing output, support local supply chains, and enhance productivity in key sectors critical to job creation and innovation.

Stanbic Bank Kenya and Stanbic Bank Uganda, both part of the Standard Bank Group, have successfully closed a long-term funding package worth US$45 million to help two PepsiCo bottlers in East Africa grow: Crown Beverages Limited (CBL) in Uganda and SBC Kenya Limited in Kenya.

The deal, which was set up so that CBL would get $30 million and SBC Kenya would get $15 million, is a big step forward for industrial growth in the region and for new ways to do business across borders.

This deal not only strengthens Stanbic’s position as a leader in corporate and investment banking, but it also shows how well the Standard Bank Group can connect clients across African markets.  Using its presence in 20 countries, the group has structured its financing to help CBL, grow its business and support its purchase of SBC Kenya in 2023.

Stanbic Bank Building on a 20-Year Relationship with PepsiCo

The funding comes from a partnership between Stanbic Bank Uganda and Crown Beverages Limited that has lasted for 20 years.  Standard Bank has supported CBL’s modular factory expansions since 2020. In 2023, it helped CBL’s shareholders buy SBC Kenya and gave them advice on how to do it.  This new package keeps that legacy going by giving both bottlers the tools they need to modernize their plants, increase their production capacity, and make local supply chains stronger.

“This deal shows how our Positive Impact framework turns big ideas into real actions,” said Paul Muganwa, Executive Director and Head of Corporate and Investment Banking at Stanbic Bank Uganda.  “By working with our Kenyan colleagues to create a cross-border solution, we are moving toward inclusive growth in the areas of finance, business, and industry.”

Muganwa talked about how the deal would have a ripple effect, creating jobs, increasing manufacturing output, and strengthening trade links between regions. This would be especially good for young people, women, and farmers in the beverage supply chain.

 Easy cooperation across borders

SJ Kok, who is in charge of corporate and investment banking at Stanbic Bank Kenya, said that the two country teams worked well together.  Kok said, “The fact that we can work together across our country teams shows how strong our regional network is.”  “We were able to easily help SBC Kenya and come up with a funding structure that met the complicated needs of a brownfield expansion because we already had a good relationship with Crown Beverages Limited in Uganda.”

This coordination across borders shows how Standard Bank Group, Africa’s largest bank by assets, uses its regional presence to give clients an edge over the competition. Jobs, innovation, and local value chains that drive the $45 million investment is expected to:

• Boost the production capacity of both the CBL and SBC Kenya plants
• Make thousands of jobs, both directly and indirectly.
• Make it easier for East African farmers and suppliers to sell to you.
• Increase productivity in the fast-moving consumer goods (FMCG) industry

The deal fits with Kenya and Uganda’s national development goals because it puts sustainable industrial growth first. The beverage industry supports more than 200,000 jobs in these countries.

 A Plan for African Finance

This deal is more than just money; it’s a plan for investment within Africa.  As the African Continental Free Trade Area (AfCFTA) gains traction, deals like this show how banks can:

• Less dependence on foreign capital
• Make it easier for M&A across borders
• Speed up the integration of industries

Muganwa ended by saying, “Banking with Stanbic in Uganda or Kenya means using Africa’s largest financial network to help our region grow and open up the continent’s potential.”

As CBL and SBC Kenya grow, the money will help them come up with new ideas for packaging, distribution, and sustainability. This could mean switching to more energy-efficient production.  The deal strengthens Standard Bank Group’s position as Africa’s partner in progress, showing that strategic, collaborative finance can change industries and improve people’s lives.

This $45 million package sends a clear message in a time of global economic uncertainty: East Africa is open for business, and Stanbic is paving the way for the future.

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