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Gaza Pepsi Factory Shuts down, Owners Blame Israeli Restrictions

A Palestinian man walks past Gaza Pepsi factory for soft drinks in Gaza City June 21, 2021. (Reuters)
A Palestinian man walks past Gaza Pepsi factory for soft drinks in Gaza City June 21, 2021. (Reuters)
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Gaza Pepsi Factory Shuts down, Owners Blame Israeli Restrictions

A Palestinian man walks past Gaza Pepsi factory for soft drinks in Gaza City June 21, 2021. (Reuters)
A Palestinian man walks past Gaza Pepsi factory for soft drinks in Gaza City June 21, 2021. (Reuters)

Gaza's Pepsi bottling company was forced to halt operations this week due to Israeli import restrictions that were tightened during an 11-day conflict between Israel and Palestinian militants last month, the company's owners say.

With a truce between Israel and Gaza's Hamas largely holding, Israel on Monday allowed a limited resumption of exports from the enclave.

But it has kept in place tightened measures on raw material imports, including carbon dioxide gas and syrup that the bottling company's factory needs to produce Pepsi, 7UP and Mirinda soda, said Pepsi Gaza's Hamam al-Yazeji.

"Yesterday, we completely ran out of raw materials, and unfortunately we had to shut down the factory, sending home 250 workers," Yazeji said. Before the May fighting, he said, Pepsi Gaza was generally allowed to import needed materials.

Israeli officials did not immediately provide comment on the tightened restrictions.

Israel and neighboring Egypt keep tight control over Gaza's borders, and say the restrictions are necessary to stop weapons reaching Hamas and prevent them from being produced locally.

Egypt and the United Nations stepped up mediation last week after incendiary balloons launched from Gaza drew retaliatory Israeli air strikes on Hamas sites, challenging the fragile ceasefire.

Shutdowns could also occur in other Gaza factories if Israeli restrictions are kept up, analysts say. Manufacturing makes up around 10 percent of Gaza's service sector-dominated economy, according to UN data.

Pepsi Gaza's factory has operated continuously since 1961, when the Gaza-based Yazeji Soft Drinks Company acquired rights to produce 7UP and other types of soda in the enclave.

Worth about $15 million, the owners say, the factory's products are distributed locally. A separate branch operates in the occupied West Bank, worth about $30 million, which serves the territory as well as East Jerusalem.

Company officials had made plans to celebrate 60 years of operations before the shutdown on Sunday.

Yazeji had tears in his eyes as he walked through his empty factory on Monday. The shutdown was "catastrophic", he said.

"This year should have been exceptional, celebrating 60 years since we began production.

"We are deprived of marking this anniversary."

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Macron and Tebboune Announce Return of Normal ‘French-Algerian’ Relations

The Algerian and French presidents in August 2022 (Algerian presidency)
The Algerian and French presidents in August 2022 (Algerian presidency)
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Macron and Tebboune Announce Return of Normal ‘French-Algerian’ Relations

The Algerian and French presidents in August 2022 (Algerian presidency)
The Algerian and French presidents in August 2022 (Algerian presidency)

French President Emmanuel Macron and his Algerian counterpart, Abdelmadjid Tebboune, on Monday confirmed a normalization of ties after months of strained relations and agreed to reestablish political dialogue and relaunch cooperation on security and migration.
During a phone call, Macron urged Algerian counterpart Abdelmadjid Tebboune to show “mercy and humanity” towards a jailed French-Algerian writer, Boualem Sansal, the Elysee palace said in a statement.
The author was sentenced last Thursday to five years in prison after an interview he gave to a French far-right media outlet was deemed to undermine Algeria's territorial integrity.
Macron “called for a gesture of mercy and humanity towards Mr Boualem Sansal, given the age and state of health of the writer,” the Elysee statement said.
French nationals living in Algeria and who mostly own private companies, are concerned that the diplomatic rift between both countries would affect their businesses.
They hope discussions between French and Algerian high ranking officials would halt the deterioration in bilateral relations.
Michel Bisac, president of the Algerian French Chamber of Commerce and Industry, told the French-language news website Tout sur l'Algérie, that French residents in Algeria working in companies or in the finance and business fields, are “always welcomed by their Algerian partners.”
“The problem is mainly political,” he said in an attempt to minimize the escalated relations between both countries and its impact on jobs, and French investments in Algeria.
Bisac said most French companies have performed well in 2024, but the diplomatic escalation between the two countries has raised concerns.
“French companies in Algeria do not face any retaliatory measures. As for administrative difficulties, especially with regard to imports, they affect all foreign investors, and do not specifically target France,” he added.
Bisac said there is no campaign against France despite the tense relations, affirming that professional ties remain strong, and expatriates continue to work in a stable environment.
But as bilateral relations continue to deteriorate, he said, the economy could be affected, threatening years of Franco-Algerian cooperation.
Meanwhile, the government in Paris is divided on the French-Algerian crisis. French Interior Minister Bruno Retailleau vowed a “gradual response” after Algeria refused Paris’ demand to readmit Algerian nationals from France that local authorities have deemed a threat and are seeking to expel.
In return, French Foreign Minister Jean-Noel Barrot will travel to Algiers on April 11 at the invitation of his Algerian counterpart, Ahmed Attaf, as part of the effort to mend ties between both countries. He is expected to meet with Tebboune.
Recently, Algerians have shown a willingness to dialogue, but the local press has continued its attacks on right-wing French officials, including presidential candidate Bruno Retailleau, who has called for the termination of the 1968 Franco-Algerian immigration agreement.
In return, Algeria's parliament established a commission to draft a law criminalizing French colonial rule, a move deemed “historical” and backed by local lawmakers, historians, and legal experts. Observers expect Algeria to abandon this step when relations between Algiers and Paris return to normal.