Ama, Nigeria: President Olusegun Obasanjo opened on October 24 the largest brewery in Africa, a Ђ220 million (R1.8 billion) plant financed by the Dutch beer giant Heineken, Business Report posted on October 27. Despite the recent return of Sharia Islamic law to 12 of Nigeria's 36 states, the country's market remains thirsty for beer and the government sees increased local production as a key growth factor.
Obasanjo said Nigerian Breweries' latest plant was proof that his "effort to revamp the economy and attract foreign investors was yielding good results". "We are committed and determined to encourage inflow of foreign investments," he said at the opening in Ama, near the southeastern city of Enugu.
Nigerian Breweries was established in 1946, and now has six plants. It is a subsidiary of Heineken International, which holds a 54 % stake, and serves a vast market of 126 million Nigerians. Nigerian Breweries is the most capitalised company in Nigeria, with a market capitalisation of more than 200 billion naira (R10.3 billion). Nigerian Breweries' managing director, Festus Odimegwu, said completion of the brewery in 14 months was a "veritable reflection of our status as a forerunner in cutting edge technology". Obasanjo earlier encouraged local brewers by banning imported beer, but many companies won waivers to this rule, including Heineken, and international brands are still available.
Heineken invested Ђ220 million in the plant, which has the capacity to produce 300 million litres of beer a year, officials said. The chairman of Heineken International, Anthony Ruys, said the establishment of the gigantic brewery in Nigeria would open a "floodgate" of business opportunities to Africa's most populous nation.
The governor of Enugu State, Chimaroke Nnamani, said the partnership between the Netherlands and Nigeria was "a demonstration of trust in the Nigerian leadership and economy".
29 October, 2003
