E-Malt.com News article: 1760

The Tanzania Breweries Limited (TBL) has contributed over 380bn/- to the government Treasury in the last ten years, besides increase in profitability and growing dividends to its shareholders. This was said in Dar es Salaam on October 30 by the Executive Managing Director of TBL, Arnold Kilewo, when outlining to journalists achievements the company has made since it went into a joint venture with South African Breweries (SAB) ten years ago. On November 6, it will be exactly ten years since the joint venture went into effect.

“Considering the successes of this venture and looking back to where the company was ten years ago, it is important for us to celebrate and congratulate one another for all the great achievements,” he said. The company, which was making losses until 1994, made a pre-tax profit of 11.03 bn/- in 1995 rising to 31.5 bn/- in year 2000 and 34.3 bn/- last year.
As for taxes paid to the government, the TBL has contributed 83.592bn/- this year, the figure rising significantly in the intervening years from 31.468bn/- in 1996.

Kilewo mentioned the major objectives of the joint venture between TBL and SAB (now SAB Miller) as to increase beer production, raise plant capacity utilization and improve beer quality. Other objectives were to reduce production costs, make profit and pay dividends to shareholders.

Giving background, Kilewo said SAB obtained 50 % share of TBL for a consideration of 22.5 million US dollars, the amount which was injected in cash, spares and equipment. In addition two other agreements were entered into: A management contract and the contract to build Mwanza Brewery.

“Refurbishment of the Malting plant at Moshi, and the breweries at Arusha and Dar es Salaam were completed on schedule and the first beer was brewed at Mwanza on October 4, 1995,” he said. He said beer production has been increasing since 1993, from 525,000 hl in 1993 to 1.45 million in 1997, 1.66 million hl in 1999 and 2.05 million hl this year.

The TBL Executive Managing Director said beer quality has also improved over time. He attributed the change to improved brewing technology, employee training and availability of quality inputs. Another achievement for TBL is on the number of brands produced, going up from one at the time of privatisation to 17 brands currently.The company is already exporting its products to Kenya, Uganda, Malawi and the Democratic Republic of Congo, while its Konyagi Ice is now sold in the UK and South Korea.

On future plans, Kilewo said TBL aimed at consolidating its achievements and focus more on increasing exports.
He mentioned some of the challenges that the company has faced over the years as confusion surrounding IPC exemptions, power cuts and shortage of water and essential inputs.Kilewo also commented on the recent crackdown on bars in Dar es Salaam, championed by the Regional Commissioner, Yusuph Makamba. He said the company and its customers have suffered significantly because of the enforcement of a law which he said had outlived its usefulness.

The TBL, which had a market value of 50 million US dollars in 1993, is currently worth 470 million US dollars.


05 November, 2003