The world’s largest beer maker, Anheuser-Busch InBev NV (AB InBev) has agreed to build a $100 million brewery in Tanzania. This is part of the company’s plan to boost its investment in Africa after recording an increase in the demand for its beer on the continent.
According to Bloomberg, the plans for a facility in Dodoma, Tanzania’s capital was reached after a meeting between President John Magufuli and Ricardo Tadeu, AB InBev’s head of Africa.
A few days ago, the company announced that it was also building a brewery in Nigeria and that the continent is among its fastest-growing territories. This is a huge development after the company took over SABMiller in 2016 for $106 billion.
AB InBev cited Africa as a major factor in the decision to buy SABMiller, which has its roots selling beer to miners in 19th century Johannesburg. Since the SABMiller deal pulled through, rival companies such as Heineken NV has hired hundreds of sales staff and invested in growing markets such as Ivory Coast, Mozambique, and Rwanda.
Last year, Jorge Paulo Lemann, one of AB InBev’s billionaire shareholders, said that the continent’s rapid urbanization and warm climate could eventually see it overtake the U.S. in beer sales.
The company also announced that it will start distributing its flagship Budweiser brand in South Africa this year. It will also introduce an alcohol-free version of SABMiller’s Castle brand. Castle Lite, South Africa’s biggest selling lager, remains popular. The overall fourth-quarter revenue for the company grew by 8.2 percent, beating the average estimate of 5.3 percent growth.
In Africa, SABMiller produces over 200 beers, and it has over 70,000 employees across 80 countries.