SBL’s investment in spirit making plant in Moshi was best milestone

14Jan 2022
By Guardian Reporter
Dar es Salaam
The Guardian
SBL’s investment in spirit making plant in Moshi was best milestone

ONE of the most outstanding investments made by Serengeti Breweries Limited last year was expansion of its factories in Dar es Salaam, Mwanza and Moshi where billions of shillings were spent.

SBL refurbished plant in Moshi municipality.

But perhaps the most significant investment was that of a spirits manufacturing plant which was commissioned by Prime Minister, Kassim Majaliwa during the third quarter of 2021. “I would like to congratulate Serengeti Breweries for this state of the art investment which will not only create more jobs but also boost government revenue in terms of taxes,” said Majaliwa.

He pointed out that the government of President Samia Suluhu Hassan is ready to work with serious investors such as SBL because industrialization remains the main focus of the country’s five year development plan.

“The government has made significant efforts to create a friendly environment for private investments to strive so as to encourage more manufacturing of goods locally,” the PM noted saying the new Moshi spirits plant and related expansion of its other factories will also benefit smallholder farmers who supply raw materials.

“In this regard, SBL’s investment enables us to be in a better position manufacture more products internally and the surplus to regional and global markets,” he added while assuring SBL investors of full cooperation from the state.

SBL which has been working with hundreds of smallholder farmers from eight regions of the country, gets over 70 percent of inputs for the manufacturing of alcoholic drinks locally. The brewer has contracted over 400 cereal farmers in Arusha, Dodoma, Kilimanjaro, Manyara, Mara, Mwanza, Morogoro and Singida regions who supply the raw materials.

Briefing the PM on SBL’s investments, Managing Director, Mark Ocitti said the commissioned plant was the company’s first spirits production factory and that the investment was worth 15.6bn/-.  Ocitti said the plant was one of the major projects under the company’s three year development plan which started in 2019.

“This expansion will create increased demand for cereals that SBL sources from local growers of maize, barley and sorghum for beer production. It will also create more direct and indirect job opportunities and expand the firm’s product distribution footprint nationally,” he said.

The SBL chief executive further noted that, prior to the commissioning of the Moshi spirits facility, SBL was a net importer of all of its spirits brands hence spent hard currency to get the products into the local market.

“With this plant therefore, we are also saving foreign currency used to import liquor and spirits manufactured outside Tanzania,” Ocitti noted while unveiling that in total, the brewer has invested over 76bn/- in the expansion of factories and capital boosting since 2019.

Out of the amount, 31bn/- was invested between 2019 and 2020 in Dar es Salaam to expand the brewery; and the Moshi brewery in 2020. “Our plan is to invest a total of 124bn/- by end which will take our total investment in Tanzania to over 200bn/-,” Ocitti told the PM.

Through investment made so far, SBL has created direct employment for over 800 while thousands of others are indirectly employed across its value chain. Those employed include restaurants, pubs and bar staff, transporters, farmers and agro-input dealers.

The SBL chief said with the coming into being of the African Continental Free Trade Area agreement; resumption of Bagamoyo mega port and Special Economic Zone’s negotiations plus finalization of the U$3.5 billion East African Crude Oil Pipeline project with Uganda, the future of rapid economic growth for Tanzania is real.

“We thank President Samia Suluhu Hassan’s shuttle diplomacy which has started bearing fruits because east Africa is opening up,” the SBL Managing Director stated saying the brewer will invest more to exploit the promising market potential in Africa.