Bidco Africa

Bidco Africa, previously Bidco Oil Refineries Limited(BORL), is a multinational consumer goods company headquartered in Thika, Kenya with subsidiaries and distributorships across 16 countries in East Africa, Central Africa, and Southern Africa.^[1] Its products include edible oils, fats, margarine, laundry bars and detergents, personal care products, and animal feeds.^[2] Bidco Africa owns over 40 brands and is the largest producer, marketer, and retailer of consumer goods in the region.^[3]

Overview

Bidco Africa has manufacturing factories in Kenya, Tanzania and Uganda. The Group's products are marketed to 13 African countries.^[4] In November 2014, Forbes dropped Vimal Shah from the list of Africa's 50 richest people but retained the combined figure of $700 million as the net worth of Bhimji Depar Shah, then aged 82, together with Vimal Shah, then aged 55, and Vimal's younger brother Tarun Shah.^[5]

In April 2015, Bidco Africa announced plans to quadruple business volume before 2020, by building new manufacturing factories in Mozambique, Madagascar and Ethiopia in addition to existing operations in Kenya, Tanzania, Rwanda and Uganda.^[6]

History

Bidco Africa was founded in 1970 by Bhimji Depar Shah to manufacture garments. The company ventured into soap production in 1985 and launched edible oil manufacturing in 1991.^[7] In 1998, Bidco acquired the Elianto unit from Unga Group, a firm listed on the Nairobi Securities Exchange. This was the first acquisition by Bidco.

The group expanded regionally in 2001 when it launched into Tanzania^[8] through the creation of BIDCO Oil & Soap Ltd in Dar es Salaam. This marked the entry of Bidco into one of Africa’s fastest growing markets.^[9]

In 2002, Bidco acquired Unilever’s leading brands in edible oil and soap business in Kenya.^[1] This bought brands such as Kimbo and Cowboy into its stable.

In 2005, the group expanded into Uganda with the official opening of the Bidco Uganda Limited Complex in Jinja.^[10] This plant has since been producing products for both the Uganda local market and the export markets.

Corporate philosophy

The Company's vision is to grab, grow and sustain the number one position in the African market. The Soil to Pan philosophy comprises a full value chain that starts from the farmer to the consumer's table.^[11]

Ethical issues

According to Friends of the Earth International, Bidco Uganda, a joint venture formed between Wilmar International, Josovina Commodities and Bidco Africa is involved in a long running dispute over land with local communities in Uganda.^[12]

According to The Guardian in March, 2015, the land grab issue has plagued the community of Kalangala for a number of years. In July, 2011 residents awoke to "find yellow machines churning up her land and razing the crops she had grown in a bid to make way for palm oil plantations."^[13] Bidco Africa have made no recorded statement on these matters. Again according to Friends of the Earth International, the projects implications include: Forced displacement, poor labour standards, deforestation, and insecurity amongst other.^[14] The community have now taken the conglomerate to court.^[12][15]

In February, 2016 The United Nations Development Programme (UNDP) received a petition from the Bugala Farmers Association in Uganda related to UNDP’s association with Bidco Africa Ltd. ^[16] A complaint was also received by the UNDP’s Stakeholder Response Mechanism (SRM) and Social and Environmental Compliance Unit (SECU). ^[17] In May, 2016, UNDP visited Kalangala to further investigate the issues surrounding the matter.^[18]

Bidco Africa in Kenya, has suffered from issues with poor working conditions for its workers for a number of years. In 2011 approximately 3,000 workers went on strike, paralysing operations at the edible oil processing factory. The protests were against poor working conditions, harassment by senior managers and inadequate wages.^[19] This problem does not seem to have gone away, with further protests in March, 2015 by approximately 1,200 workers raising similar issues to that of the 2011 strike.^[20]

Allegations of tax impropriety have also dogged Bidco Africa. In 2012 Bidco Africa was in court contesting a KSh1.3 billion tax bill from the Kenyan Tax Authorities.^[21] In 2013 Bidco Africa was found guilty and ordered by the courts to pay the amount due.^[22] The sum of KSh 1.3 billion was calculated from Bidco Africa's undervaluation of value added tax and duty payable on the contract due to tariff misclassification and undervaluation of goods.

In October, 2016 a petition was submitted to the Kenyan National Assembly detailing a range of Tax and labour irregularities. The Kenyan Parliament is now set to make further investigations. ^[23]

Sports sponsorship

Bidco Africa is a sponsor of Bidco United Football Club an association football club based in Kenya competing in the Kenyan National Super League,^[24] and Bul FC a Ugandan football club based in Jinja and plays in the Ugandan Super League.^[25]

Ownership

The stock of Bidco Africa is a wholly owned subsidiary of Hemby Holdings Limited, a privately held investment holding company of Bhimji Depar Shah and his family. The indirect shareholding in the group's stock was equally divided among Bhimji Depar Shah, Vimal Shah and Tarun Shah.^[26]

See also

• Bhimji Depar Shah
• Vimal Shah

References

External links

• Bidco gains support of Uganda farmers in raging land dispute