Heineken started activities in Mozambique in 2016 with a sales and marketing office as it imported global brands such as Heineken, Amstel, Amstel Lite and Sagres into the country. Now, the Dutch brewing giant says the construction of its first brewery in the country is a ‘major step forward’ in its activities.
Located in the province of Maputo, the brewery will have a capacity of 0.8 million hectolitres and will brew products for the domestic market. The new brewery is expected to create 200 direct jobs and additional indirect jobs.
Production will commence in the first half of 2019. Heineken says it will announce which brands will be produced at the brewery once construction is complete.
New market
The foundation stone of the new brewery was laid in the presence of His Excellency Mr. Max Tonela, Minister of Trade and Industry.
Boudewijn Haarsma, Heineken International managing director for East & West Africa, said the company had enjoyed the support of the government and believes that the new brewery will help contribute to economic and social development in the country.
"We are delighted to enter Mozambique, where we see promising long-term economic perspectives.
“Investing in a new market like Mozambique supports Heineken’s ambition to expand its footprint and be the number one or a strong number two in all markets in which it operates.
“With our extensive experience and existing business in Africa, we also aim to be a partner for growth today in Mozambique as we already are throughout the continent.”
Heineken aims to source 60% of its agricultural raw materials in Africa by 2020. Consequently, Heineken Mozambique says it will explore local sourcing of raw materials, as well as seeking to improve crop yields. It will also look to improve the capabilities and living standards of farmers.
Growing markets
Heineken's Africa, Middle East and Eastern Europe division accounts for 15% of its total revenues. In its Q3 2017 results organic consolidated beer volume in the division was up 8.8%.
Heineken first imported beer into Africa in 1900, and today operates in 23 countries across Africa and the Middle East, including Ethiopia, South Africa, Nigeria and Algeria.
In 2015 it inaugurated Ethiopia's biggest brewery, representing an investment of $95m in the Kilinto brewery which has a total capacity of 1.5 million hectoliters.
Beer consumption in Africa is predicted to grow at around 5% in the period 2015-2020: putting it way ahead of mature markets such as Western Europe and North America which show growth of around 1%.
Growth is driven by rising GDPs, economic development and urbanization.
Map credit:getty/harvepino