AB InBev plans expansion in Tanzania; announces construction of new $100m brewery

Anheuser-Busch InBev (AB InBev) is moving quickly to expand its holdings in Africa. The world’s largest beer company announced on Monday following a meeting with the Office of the President of Tanzania, John Magufuli, to invest $100m in a new beer plant in Dodoma, the administrative capital of Tanzania. AB InBev is the majority shareholder in Tanzania Breweries Limited, the country’s largest brewer and one it inherited following its acquisition of SABMiller in 2016.

Speaking after the meetings, President Magufuli said, “I want to assure you that my government does not hate business people – we like them and we will support them … this is the right time to do business (in Tanzania), but you must pay your taxes,” the president was quoted as saying.

With a planned annual capacity of 1 million hectolitres annually, the plant will be ready to go into production in the second-half of 2020 and will offer lagers such as Castle Lite, Safari, Kilimanjaro, Balimi Extra and Eagle Lager.

The construction of a new brewery in Tanzania will put AB InBev in direct competition with Diageo controlled East African Breweries Limited (EABL), the region’s dominant brewer.

Africa is seen as holding vast opportunities for growth in beer, according to Ricardo Tadeu, AB InBev’s zone President for Africa. About 65 million in Africa will reach the legal drinking age by 2023.

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