BARLEY FARMERS TO BENEFIT AS TANZANIA BREWERIES UNVEILS $40M KILIMANJARO MALTING PLANT

TBL’s Managing Director, Michelle Kilpin.

Kilimanjaro, Tanzania – A new era is dawning for barley farmers in Tanzania with the imminent opening of the Kilimanjaro Malting Plant in Moshi. The $40.38 million (approx. 96 billion TZS) facility, constructed by Tanzania Breweries Limited (TBL), is poised to significantly transform local barley farming and processing.

TBL’s Managing Director, Michelle Kilpin, hailed the plant as a strategic milestone for agricultural development, saying it reflects investor confidence and strong alignment with government efforts to uplift rural livelihoods.

“This is yet another significant effort by both local and foreign investors to support the government’s initiatives to uplift farmers by providing a reliable market for their produce,” Kilpin stated.

Scaling Up Barley Production and Market Access

The malting facility is expected to triple local barley procurement, increasing annual purchases from 5,000 tonnes to 15,000 tonnes initially, with a goal of reaching 32,000 tonnes in five years. This increase offers barley farmers not only market stability but also greater long-term income prospects.

Currently, TBL works with more than 4,500 local farmers across Arusha, Manyara, Dodoma, and West Kilimanjaro, sourcing key raw materials such as barley, maize, and sorghum.

“Our support goes beyond procurement,” Kilpin said. “We offer training in sustainable farming techniques, provide quality seeds and fertilisers and guarantee secure off-take contracts.”

She further highlighted TBL’s Smart Agriculture Initiative, which integrates digital connectivity, real-time information, and modern farming practices to empower farmers and improve yields.

Creating Jobs and Strengthening the Supply Chain

The Kilimanjaro Malting Plant is expected to boost processing capacity, improve operational efficiency, and reduce production costs. Importantly, it will expand contract farming, directly engaging 17,500 out-growers from Kilimanjaro, Manyara, Mbeya, and Rukwa under formal agreements.

This development is set to further solidify TBL’s commitment to building a resilient, farmer-inclusive supply chain that also benefits end consumers through cost efficiencies.

TBL’s Broader Economic Impact

TBL’s Head of Tax, Jovin Bachwa, emphasized the company's role as a key economic player, noting that TBL has paid over 5.5 trillion TZS in taxes over the past decade.

“Our tax contributions help support national initiatives, including infrastructure development, social services and economic growth programmes,” he said.

However, Bachwa also raised concerns about the financial impact of the Electronic Tax Stamps (ETS) system. Despite last year’s reduction in ETS charges from 28% to 24%, he proposed a further cut to 17% to ease the burden on manufacturers.

“Between 2018 and 2022, we paid over 75.8 billion TZS for the ETS system, nearly 38% of our excise duty. These funds could have been reinvested in expanding our operations and supporting more farmers,” he added.

A Forward-Thinking Investment

With the Kilimanjaro Malting Plant nearing completion, TBL’s investment stands as a model of private sector leadership in agricultural transformation. By combining modern infrastructure, farmer support programs, and sustained advocacy for a better tax environment, TBL is not only brewing beer—it’s brewing opportunity for thousands of Tanzanian farmers.

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