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JUNE 18, 2022

LOCAL BUSINESSES CONTINUE TO BENEFIT FROM ZAMBIAN BREWERIES 

Zambia’s largest brewer has continued to empower local businesses through the procurement of goods and services

LUSAKA, ZAMBIA – For over a decade, Zambia’s largest brewer Zambian Breweries, part of the world’s largest brewing company – Anheuser-Busch InBev – has continued to invest in its business, people, and equipment.

Last year Zambian Breweries spent over half a billion kwacha on the purchase of plant property and equipment. The disclosure, made in the company’s most recent annual report to shareholders, came with the announcement of the completion of the US$18 million expansion of its Ndola and Lusaka plants. 

In the last decade the company has spent just under half a billion united states dollars on plant, equipment, containers and distribution fleet. The company’s capital expenditure, during the period,  has included the construction of a malting plant in the Lusaka South Multi-Facility Economic Zone (MFEZ) which was commissioned four years ago; upgrading of its Lusaka and Ndola plants with cutting-edge technology; and the replacement of bottles, kegs, and crates to increase brewing capacity and address beer shortages across the country.

Through this ambitious capital expenditure, made during a time when all industries were hard hit by the effects of the COVID-19 pandemic, the nation’s largest beer brew looked forward to strengthening its partnerships with local businesses and its ever-expanding footprint of direct and indirect contributions to the economy.

However, one question that may often be asked is ‘what is in it for the ordinary Zambian?’ beside the obvious consumption of the company’s end products. 

This investment has not only contributed to the general development of the country but has also directly improved standards of living for many Zambians through the employment opportunities created both directly at the company’s plants and through the out-grower farmers, distributors, retailers, and outlets across the country. 

According to the economic impact analysis published by global consultancy EY last July, Zambian Breweries was the top generator of indirect jobs among Zambia’s largest companies, responsible for indirectly creating over 79,000 jobs in 2019 across a wide section of the economy: from agriculture and food and beverages to manufacturing, wholesale and retail trade; transport and storage, and hospitality. 

Zambian Breweries has continued to empower local businesses through the procurement of goods and services. In 2020, Zambian Breweries spent close to K2 billion on local goods and services.

The company has also continued its commitment to providing a market and input and yield support for local farmers. In 2021, the brewer’s agricultural procurement increased to more than 32,000 tonnes – a 40 percent increase benefitting around 8,000 households.

Among the businesses experiencing the quantified impact of the company’s operations are the cooperatives around the country that are participating in its out-grower schemes.

Following the success of the initial Smart Agriculture project, Zambia’s largest brewer has expanded the reach of the programme to impact more local communities with its barley, cassava, and sorghum out-grower initiatives. 

Zambian Breweries more than doubled its procurement, of cassava, from 4,000 metric tonnes in 2019/2020 to almost 5,000 metric tonnes in 2020/2021, which directly benefited over 6,000 households over the past 5 years in its project areas. The brewery also managed to procure 2,300 metric tonnes of sorghum – positively impacting over 3,500 households. 

This partnership with local farmers has opened up opportunities for financing, education, farming input supply, and technology support to thousands of small, medium, and large-scale maize, cassava, sorghum, and barley growers.

The out-grower schemes alone significantly contribute to job creation across the entire value chain, from agriculture to marketing and retail. 
Speaking on the effects of Zambian Breweries’ expansion country director Michelle Kilpin said: “It brings us a lot of joy to see our growth and investments impacting more industries than just food and beverages. Our value chain cuts across so many sectors and impacts the livelihoods of our people in ways that may not be immediately obvious. The EY report released last year really emphasised that for us and hopefully for all our stakeholders as well.”

“With the majority of our raw material being sourced locally, we are proud to be able to point at that as our tangible support of the country’s overall goal to increase local spend on agricultural goods and services, bringing direct profit to our local businessmen and women.”

The COVID-19 pandemic further amplified the importance of locally sourced raw materials in its operations.

Through a partnership with the UN World Food Programme, the brewer has enabled smallholder farmers to access high-yielding sorghum seed, training on crop management and insurance to protect their crops from climate shocks, and agricultural extension services and markets.

The company also continues to empower small-scale farmers with digital financial skills through its technology-based platform called BanQu.

By 2025, Zambian Breweries targets to skill, connect, and financially empower 100% of its direct farmers through the smart agriculture goal.

Further, in line with the Global Responsible Sourcing Policy, Zambian Breweries looks at the entire value chain for opportunities to reduce costs, limit environmental impacts and improve economic stability among its suppliers and surrounding communities.

Meanwhile, the company is also empowering local transporters and distributors, investing K200 million in 2020.
The country’s largest brewer has many local businesses at heart and for as long as it continues to operate at maximum capacity, more entrepreneurs will be empowered.

In the words of AB InBev’s vision, Zambian Breweries looks forward to a future with more cheers.

-Ends-

About AB InBev in Zambia
Zambian Breweries Plc is part of Anheuser-Busch InBev (AB InBev), the largest brewer in the world, with more than 400 beer brands and some 200,000 employees in over 50 countries. It is also one of the world’s largest bottlers of soft drinks.
Zambian Breweries was established in Zambia in 1968 and its product range has grown to include clear beers such as Mosi Lager, Castle, Carling Black Label, Eagle beer, Stella Artois and Budweiser.

For media inquiries please contact
Gillian Langmead at Langmead & Baker Ltd
+260 979 060705
info@langmead.com