Tanzania: Tanzania Breweries Limited planning to invest in another malt making plant

Tanzania’s country’s largest alcoholic beverages manufacturer, Tanzania Breweries Limited is planning to invest in another malt making plant to serve the local market from imports within the next two to three years, the IPP Media reported on November 5.

TBL’s new Country Director, Jose Moran said in Dar es Salaam mid this week that the brewer which controls over 70 percent of the formal alcohol market, wants to get all of its raw materials locally. “Currently we source over 70 percent of raw materials locally,” Moran said adding that because the country produces less malt to meet demand, much of it is sourced abroad.

“We are also looking at the market demand because we also will have to sell the malt to others,” he pointed out saying currently the alcoholic beverages market is dominated by illicit liquor manufacturers who have also forged electronic tax stamps.

Moran who also worked in Zambia before coming to Tanzania said unlike Lusaka which imports almost all beer making ingredients from South Africa, Dodoma produces much of the raw materials locally although supply constraints remain for some products including barley.

“We have illicit products in the market which also include counterfeit electronic stamps which consumers cannot easily notice,” he pointed out while stressing that while TBL and its parent company AB InBev are committed to investing more in the country’s unfair playing field remains a concern.

The new TBL chief who clocked 100 days since assuming the position this week commended Treasury for lowering excise duty charged on beers made from locally made malt saying such an incentive encourages investors to put money in the business.

He pointed out that although the country’s alcoholic consumption has been increasing for many years, formal producers have not enjoyed the growth because of illicit manufacturers but also the burden of ETS.

The brewer which has plants in Arusha, Dar es Salaam, Mwanza and Mbeya has paid over 3.7trn/- in taxes for the past 10 years. “The value added by TBL to the Tanzanian economy is 613bn/- or 0.5 percent of the country’s gross domestic product. TBL also produces malt at its malting plant in Moshi, which has a production capacity of 15,000 metric tonnes per annum. Malt is an important ingredient in manufacturing lager beers.

While presenting his maiden budget speech in parliament last June, Finance and Economic Planning Minister, Dr Mwigulu Nchemba lowered excise duty manufactured with locally malt by five percent although Confederation of Tanzania Industries had requested for a 20 percent reduction to attract more investment in the area.

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