Tanzania Breweries invests US$40mn in Kilimanjaro Malting Plant
TANZANIA – Tanzania Breweries (TBL), a subsidiary of the largest brewer in the world, ABInBev, has committed a tune of TZS 96 billion (US$40.38mn) to be invested in the construction of the Kilimanjaro Malting Plant in Moshi that will use an all-in-one malting solution called RimoMalt technology.
RimoMalt is the first fully modular all-in-one standardized 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.
Brewery Operation Director Richmond Raymond detailed that the efficiency of the system, with the ability to steep, germinate, and kiln all in the same module, simplifying the production process.
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 US$10.5 million to produce 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.
This phase aims to enhance local production capacity 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 US$6.3 million, which will complete the project and get the plant ready for the utilization of the excise code on locally malted barley.
Jose Moran, TBL’s Country Director, commented: “The total capital expenditure in the revamping of the Kilimanjaro Malting Plant is expected to be TZS 96 billion, with TZS 42 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.”
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.
Richmond Raymond, Brewery Operation Director, pointed out that the investment 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.
Deputy Minister for Investment, Trade, and Industry, Hon. Exaud Kigahe, noted that the 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.
It is envisaged that the Kilimanjaro Malting Plant will 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.
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