In late March the Tanzanian President’s Office announced that AB InBev, the main shareholder of Tanzania Breweries (TBL), would start work on the $100m brewery next year. Production is expected to begin in 2020 at the site, which will have the capacity to generate 1m hectolitres of beer per year.
An agreement on the terms of construction was reached during the 11th Tanzania National Business Council – a forum for dialogue between the public and private sectors in Tanzania.
AB InBev already operates breweries in Mbeya, Dar Es Salaam, Mwanza and Arusha, with these expected to reach maximum capacity by 2020, according to a statement made to press in March by Roberto Jarrin, president of AB InBev, East Africa.
African beer market offers growth potential
AB InBev’s new facility comes on the back of strong growth in the beer market in Africa last year, in contrast with the broader global market: consumption grew by 4.5% across the continent but fell by 0.7% in the world’s six largest markets in 2017, according to industry research company Plato Logic.
This rise in African consumption, coupled with declining demand in more mature markets, follows investments from several major players in the beer market across sub-Saharan Africa in recent years.