SABMiller, SWD to Build a $ 60 Mln Brewery

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SABMiller, the world’s second largest brewer, and SouthWest Development (SWD), an Ethiopian investment group, are going to build a 60-million-dollar brewery in Ethiopia. The brewery will be built near Holeta, 40km from Addis Ababa.

The brewery is expected to have an annual production capacity of 500,000 hectolitres of beer. Construction of the factory is scheduled to start when the rainy season is over and to be completed in 18 months time.

Beer consumption is growing in Ethiopia at the rate of 20 percent. The current annual per capita consumption of beer is four litres.

Early this month, Heineken concluded the purchase of Bedele and Harar breweries for 163 million dollars. SABMiller and SWD have also shown interest in the market. Their initial offers to buy state-owned breweries have been unsuccessful.

It was reported last week that Meta Abo, another state-owned brewery, was up for auction. The government of Ethiopia has not yet revealed how much it is demanding for Meta Abo but the bids will close on September 3.

SABMiller and Southwest Development jointly own Ambo Mineral Water S.C. which they bought from the Ethiopian Privatization and Public Enterprises Supervisory Agency (PPESA). They have upgraded the factory with a 21 million dollar investment.

The Reporter