Nestle ramps up sourcing in Nigeria, other African countries
Nigeria last week allowed naira currency to drop as much as 36
Nestle has given local suppliers letters of intent
Provides technical expertise, financial support

LONDON, June 26 Reuters Food giant Nestle39;s businesses in Nigeria and other African countries are ramping up sourcing of local raw materials like starch and turmeric, a move that may help reduce foreign exchange exposure that has been a headache for the sector.

In the wake of the COVID19 pandemic and the supply chain problems it wrought across the world, consumer goods companies have stepped up efforts to bring production and raw material sourcing closer to their consumer markets.

Growing debt in many African nations has put pressure on foreign reserves and created currency volatility that makes it harder and more expensive to import inputs. Last week, for instance, Nigeria39;s central bank allowed the naira currency to drop as much as 36 on the official market.

Nestle, which is replacing imported corn starch in Nigeria with cassava starch, told Reuters it has helped seven local suppliers to boost capacity to meet the company39;s supply needs.

The next step is to expand the localization journey across the region Cote dIvoire, Cameroon and Senegal, the

world39;s biggest packaged food maker said in an emailed statement in response to questions.

The Swiss company, which makes Kit Kat candy bars and Nescafe coffee, has more than 2,000 brands…