South Africa’s Clover Industries will no longer invest in Nigeria due to a financial crisis there, the dairy products company said on Wednesday.
“The current financial crisis experienced in Nigeria which is fueled by the low oil price is a further cause of concern, thus the group has decided to withdraw from future investments in Nigeria,” Reuters quoted Clover as saying in a statement.
Companies have laid off thousands, cut production and even closed operations as they struggle to get enough dollars to pay for imported spare parts and raw materials.
“It’s a sad decision but until the currency crisis is resolved we won’t be able to invest in there any further,” Chief Executive Johann Vorster told Reuters.
Clover had planned to invest no less that 100 million rand ($6.43 million) in developing its products in Nigeria, he said.
The company said it would continue to expand in Botswana, Namibia, Lesotho and Swaziland.
He added that the company would like to keep the Clover brand alive through its Tropika juices.