adminThe new brewing plant will be owned 60 percent by SABMiller Namibia, a wholly owned subsidiary of SAB SA, and 40 percent by Namibian partners.
This comes as an extension of the giant brewer’s footprint in the African market where it already dominates markets in Zimbabwe, Zambia, Botswana and South Africa.
According to the multinational, construction of the brewing plant is expected to last for 16-18 months before the first drop of alcohol is ready for the market.
Excavation for the 260 000 hectolitre brewery about 60km out of the Namibian capital, Windhoek, has started and the government and other stakeholders have given their thumbs-up.
Research has shown although the initial production will be 260 000hl a year, output can be pushed up to 400 000hl with time when the brewery will be fully functional.
The brewery will sit on 7,2ha and is expected to create more than 200 permanent jobs. Unemployment in Namibia stands at 27 percent.
SABMiller chairman Norman Adami said the company was upbeat about its prospects in the country.
“We have confidence in Namibia and we believe that competition is good for everyone.
“We obviously understand the privilege of us being here and in future we should be working on a long-term investment. We hope to join the lead in creating a vibrant manufacturing sector.”
Mr Adami acknowledged that penetrating the Namibian market would be a challenge, but there was an advantage in that the cost of producing was relatively lower. In addition, the completion of the plant would create an easy gateway into the booming Angolan market.
Although SABMiller is a leading world brewer, the Namibian market is heavily saturated with Namibian Breweries (Nambrew) products. Only last week an emerging brewer, Camelthorn Breweries, failed to honour its debt obligations, and was on the verge of a Nambrew takeover.
In a recent interview, Namibian deputy minister of trade and industry Tjekero Tweya welcomed SABMiller’s investment, saying it was in line with the country’s goal of stimulating the primary industries.
“This was something Namibia needed to do in order to stimulate economic growth and job creation. We are greatly impressed with such developments because they show the country as a good investment destination and will go a long way in creating the much needed jobs,” Mr Tweya said. – Businessday.
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