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01 February, 2023

Brewing news Uganda: Uganda Breweries commissions new Sh39.9 bln production line

Uganda Breweries Limited has commissioned a Sh39.9 billion production line that will increase the brewer’s production capacity to 30,000 330ml Bottles Per Hour and 25,000 500ml Bottlers per hour averaging Best – in Class efficiency of 94%, The Independent Uganda reported on February 1.

The new line which is manned by at least 65% women will supplement a UGX 44.4 billion state-of-the-art bottling line that was launched in 2010 that doubled the production capacity of the beer bottling plant.

The commissioning on February 1 was presided over by a delegation from the Ministry of Finance led by the State Minister of Finance for General Duties – Henry Musasizi, accompanied by the Permanent Secretary and Secretary to the Treasury – Ramadan Ggoobi and Moses Kagwa – the acting Director of Economic Affairs.

While addressing guests and the media during the commissioning, Andrew Kilonzo – UBL’s Managing Director – said, “As a 76-year business, this milestone stands as a testament to the fact that our quality Ugandan products – made from quality Ugandan inputs – are well-received in the country and the region, which translates into our growing impact on the lives of the over 38,000 farmers and over 200,000 farmer households that supply the raw materials that feed our production processes.”

He added that the line averages a Best-in-Class Efficiency of 94% and that despite the increased demand for UBL’s products, the brewer continues to promote a culture of responsible consumption of adult beverages through campaigns targeted at promoting moderation, dissuading drink driving in the strictest terms and also ensuring the communication of zero tolerance to underage drinking.

The new line brings UBL’s total capital expenditure in Uganda to over Sh7.8 trillion since the brewer commenced operations in 1946, and it has since grown to become one of the country’s top 5 taxpayers contributing atleast UGX 430 billion in taxes annually.

While addressing guests, Musasizi hailed UBL for believing in Uganda’s economic potential by increasing its investments in the country.

“Uganda Breweries and the larger hospitality industry have been instrumental in the economic recovery of the country following the COVID-19 pandemic. New investments like these give us more hope in the full recovery of the manufacturing sector and are evidence that the Ugandan economy is sound as evidenced by the trust and appetite of investors like these.”

Uganda’s manufacturing sector has the potential to drive the country’s post-COVID recovery through the government’s encouraging the uptake of local raw materials to promote local manufacturing towards import substitution and export promotion.

Output from Uganda’s manufacturing sector was $6.66B in 2021 – a 12.15% increase from 2020, and the sector employs more than 1.3 million people, contributing 18.6% of the nation’s GDP, 19% of the total exports and 14% of the tax revenue collections.

Japheth Katto – UBL’s Board Chair, thanked the Minister and the Ministry in general – for maintaining an open-door policy with the private sector that encourages dialogue and collaboration towards contributing to the country’s economic growth.

“As a company, we have shown our commitment to growing with Uganda through being a diligent taxpayer, employing thousands of people in transport, distribution, processing, manufacturing and so on, and we thank your ministry and the government for creating a favourable climate for business all towards realising the immense potential that lies within Uganda,” he said.

Uganda Breweries Limited is Uganda’s leading premium adult beverage company. It is a subsidiary of East African Breweries Limited (EABL), the region’s leading beverage Alcohol Company in which Diageo is a majority shareholder.

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