Dutch brewer Heineken N.V. announced on Monday the laying of foundation stone for its first brewery in Mozambique.

The company said that the new brewery which will open in the first-half of 2019 will be located in the province of Maputo, cost $100 million (€85m) to build and have a production capacity of 0.8 million hectoliters a year.

Heineken entered the Mozambican beer market in 2016, importing international beer brands including Heineken, Amstel, Amstel Lite and Sagres into the country.

The brewer noted that the construction of its first brewery in Mozambique is a major milestone forward for its presence in the country.

With the investment, Heineken is targeting the creation of 200 direct jobs in the country and support additional indirect jobs through its entire value chain, adding that it will also explore the possibility of sourcing 60% of its agricultural raw materials from the country which is in alignment with its “Africa 2020 Vision.” The initiative, it said will lead to better training and improvement in crop yields for farmers involved in the value chain, as well as better living standards for them.

Heineken will take on Cervejas de Mocambique (CDM), which is the local unit of Anheuser-Busch InBev, formerly SABMiller, and the market leader in Mozambique, with brands such as 2M Lager (Mac Mahon), Impala (brewed from Cassava), Laurentina, Manica among others.

Boudewijn Haarsma, Heineken International’s Managing Director East & West Africa, said: “We are delighted to enter Mozambique, where we see promising long-term economic perspectives. The project is progressing well thanks to the support of the Mozambican Government and its commitment to bring investments into the country. Investing in a new market like Mozambique supports Heineken’s ambition to expand its footprint and be the number one or a strong number two in all markets in which it operates. With our extensive experience and existing business in Africa, we also aim to be a partner for growth today in Mozambique as we already are throughout the continent. I am convinced our presence will contribute to the economic and social development that is already under way in Mozambique.”