Tanzania Breweries Limited announces a multibillion malting plant investment

Dodoma. Tanzania Breweries Limited (TBL) has announced a Sh96 billion investment in its flagship Kilimanjaro Malting Plant that is being built in Moshi.

The plant will boost the agricultural sector, improving the livelihoods of farmers by scaling up local purchases of barley from 5,000 tons to 12,000 tons and then 32,000 tons over five years once completed.

Furthermore, TBL’s investment in the opening of this plant in March 2024 will benefit brewers and manufacturers, thus boosting Tanzania’s economy. The construction phase of the megaproject will provide direct employment to around 70 people, 80 percent of them Tanzanians, and is set to create direct and indirect jobs for many others once it is fully operational.

The project is expected to be implemented in two phases: phase one between 2023 and 2024, and phase two between 2024 and 2025. Phase one begins with an initial investment of $10.5 million for the production of 12000 Metric Tonnes(MT) and aims to boost local production capacity at the farmer level through capacity building, seed variety testing, and the initial construction and upgrading of the malting facility.

The second phase of the project will scale up the project's construction to 16000 MT of capacity with a total investment of $6.3 million, which will complete the project and get the plant ready for the utilization of the excise code on locally malted barley.

TBL’s Country Director, Jose Moran, said: "The total capital expenditure in the revamping of the Kilimanjaro Malting Plant is expected to be Sh96 billion, with Tsh42 billion injected in the first phase. Overall, through this investment, the plant will broaden the contribution of manufacturing and local agriculture to the economy of Tanzania."

This investment could not have been made possible without the government’s support in creating an enabling environment; as such, it aligns with the government’s priorities, including the boosting of agricultural production, the support of local manufacturing, employment and sustainable livelihoods, and the expansion of trade.

In helping to realise this goal, Minister for Agriculture, Mr Hussein Mohamed Bashe, said: "We continue to play our role in supporting TBL in several ways, including promoting value addition, which entails the processing of agricultural products in order to increase their market value and create new manufacturing opportunities. For example, the Ministry is working with farmers to improve their harvesting and storage techniques and promote the establishment of agro-processing industries."

Deputy Minister for Investment, Trade, and Industry, Hon. Exaud Kigahe, added that "measures taken by the government to reduce the cost of doing business are making it more attractive for companies to set up manufacturing operations in Tanzania, and by doing so, Tanzania can boost its economic growth, create jobs, and improve its trade balances."

The presence of other government officials such as Hon. David Kihenzile, the Chairman of the Industries, Trade, Agriculture, and Livestock Parliament Committee, who reiterated the government’s pro-business approach, and Hon. Daniel Sillo, the Chairman of the Parliament Budget Committee, also helped solidify the government’s stance in supporting business growth in Tanzania.

The Kilimanjaro Malting Plant is expected to inject an additional Tsh 226 billion into the revenue of Tanzania through an expanded value chain across agriculture, malting, brewing, packaging, distribution, logistics, and retail, in addition to the construction of the malting facility.

Moran shared his hopes for this venture, saying, "We firmly believe in Tanzania and its potential for further growth. As the biggest taxpayer, being able to continue to invest in the country creates a win-win situation for everyone. With this investment, TBL is once again showing its commitment to the expansion of industry, manufacturing, agriculture, and a future with more cheers."

Beyond the economic impact, technology is also an integral part of TBL’s strategy, and the opening of the malting plant manifests that, as it is remodelled as an all-in-one malting solution plant with the RimoMalt technology at the centre.

RimoMalt is the first fully modular all-in-one standardised malting technology developed by Swiss equipment manufacturer Bühler and represents a breakthrough in the malting industry as it offers a plant structure that can grow with the demands of customers.

This flexibility in production technology will enable TBL to efficiently scale up its operations and meet the growing demand for its products.

The new Kilimanjaro Malting Plant, fitted with this state-of-the-art technology and equipment, will not only improve efficiency and lower operating costs; it also makes TBL the first company globally to utilize this technology, a testament to TBL’s drive for innovation.

On the use of modern technology, Moran said: "TBL's focus on innovation and modernisation will help it stay ahead of the competition and continue to produce world-class beer products that meet the evolving needs and preferences of Tanzanian consumers."

Brewery Operation Director, Richmond Raymond, detailed the efficiency of the system, with the ability to steep, germinate, and kiln all in the same module, simplifying the production process.

"This is a significant milestone for TBL and the Tanzanian community, as it marks a return to local production of malt, a key ingredient in brewing beer, and the creation of new jobs and opportunities for local farmers," said Raymond.

"Improving local production of barley, boosting excellence in production, and embracing innovation for our community is key for us, and we are here to stay," he added.

The transformative production processes that come with the malting plant and its new technology are also an opportunity for private sector stakeholders to tap into in terms of long-term investments for significant expansion of the sector.