Zambian Breweries’ US$33m maltings plant set for commissioning

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Zambian BreweriesZambian Breweries’ US$33 million maltings plant is now ready for commissioning following the successful testing of its barley acceptance systems at the Lusaka South Multi Facility Economic Zone (LS-MFEZ).

The Independence Day run-through reaffirmed the company’s commitment to being a long-term investment partner with the government, said Director of Corporate Affairs Ezekiel Sekele.

The plant is part of the group’s continuing investment plan in Zambia and is set to boost purchases of barley from local farmers as a key ingredient in the company’s popular Mosi, Castle and Castle Lite lagers.

The company’s multi-million dollar commitment to the maltings plant is part of the group’s wider commitment to investment in Zambia, spurred by the government’s reduction in excise tax on clear beer in last year’s Budget.

In the last five years Zambian Breweries, National Breweries and Heinrich’s Syndicate, which are now part of AB InBev, have invested more than US$400 million in long-term capital projects.

The group’s investments are helping it to grow production volumes, thus increasing employment opportunities, enabling the company to buy more agricultural commodities such as barley, maize, sorghum and cassava from local suppliers and boost sales, thus increasing overall tax revenue to the government.

The new facility – the first of its kind in Zambia – will enable locally grown barley to be processed into malt, the main ingredient for clear beer, for the first time in Zambia, creating more business for farmer suppliers who provide the brewery with barley thus spurring economic growth, job creation and national development, explained Managing Director Annabelle Degroot.

“The future of Zambia and its economic development matters deeply to us. The plant will enable Zambian Breweries to add value within Zambia to barley – all of which is bought from local farmers in Zambia. Previously, we used to export our barley to neighbouring Zimbabwe for malting and then import it back to Zambia,” said Degroot.

“Our recent upswing in investment has been as a direct result of the confidence we have in our business, and in Zambia, following the government’s move to reduce excise tax on clear beer from 60 percent to 40 percent, making it comparable to the region’s average rate and thus stimulating demand and enabling the business to grow volumes,” she added.

The plant has a maximum capacity of 15,000 tonnes of finished malt per year, creating a surplus over the brewery’s current demand of 10,000 tonnes and thus producing excess supply that can be exported.
The barley will be stored in ten massive 1,500 tonne-silos, each 32 metres high, which involved the country’s largest single pour of concrete – 1,800 cubic metres – for their foundations.

The company is now awaiting the official commissioning of the plant by the government.

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2 Responses to Zambian Breweries’ US$33m maltings plant set for commissioning

  1. In Zambia, an investment of US$ 33 million is a big deal worthy of all the “big” speeches, ceremonies and all the paraphernalia that goes with it. Elsewhere in the world, even in Africa, US$ 33 million is just small beer.
    Where has Zambia been when the whole world was going round?!

    Pheka
    October 26, 2016 at 9:17 am
    Reply

  2. Pheka don’t show your ignorance online what kind of investment have you made in area where you live, I believe that you don’t even have a chicken run. You don’t even have a $ 1,000 in your bank account your children haven’t been setup a trust fund in case you kick a bucket soon, they would be orphans. $ 33 million dollars is the kind of money which you will never make in your life time. Stick to online politicking. Private sector investment

    Buck teeth
    October 26, 2016 at 5:54 pm
    Reply

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