FDBusiness.com

SABMiller’s Ugandan subsidiary, Nile Breweries, has officially opened its new brewery in Mbarara, western Uganda. Following an investment of US$90 million, the new brewery has been operational since April this year. The new facility is SABMiller’s second brewery in Uganda and doubles the company’s potential brewing capacity to 3.6 million hectolitres.

Commenting on the new brewery’s opening, Mark Bowman, managing director of SABMiller Africa, says: “The growth potential in Uganda, particularly Western Uganda, is significant and the new brewery in Mbarara will allow us to realise the opportunity. Building a second brewery in Uganda is part of our strategy to invest in new capacity across Africa so that we are in a strong position to capitalise on the continent’s long-term beer market growth over the coming decades.”

Clear beer volumes in Uganda have been growing at a compound annual growth rate of 11% for the past six years. Growth is expected to continue at this level for the foreseeable future, driven by GDP growth, a rapidly growing population, and currently low per capita consumption. The new brewery brings SABMiller’s total capital investment in Uganda to over US$200 million in the last five years.