SABMiller to pump $2.5bn into Africa
SABMiller is due to invest up to $2.5 billion in Africa over the next five years to build and revamp breweries according to its head for the region.
The group’s Africa business, which excludes South Africa, is its fastest growing and benefits most from capital expenditure. As reported, SABMiller’s underlying volumes in the last three months of 2011 increased by 11 percent in the region.
"We are still looking at around $400 to $500 a year...for the next three to five years," Mark Bowman, SABMiller's Managing Director for Africa told the Reuters Africa Investment Summit.
"There's quite an attractive growth in markets outside South Africa so we will be investing basically to meet and be ahead of demand."
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Bowman added that the brewer, which is headquartered in London, will build two or three breweries each year across Africa to increase capacity.
Although commercial beer consumption per head is much lower a 8 litres per person per year compared to 70 litres in North America and Europe, Bowman said that if home brewed beer was included consumption would be the same.
SABMiller recently launched its lower priced cassava beer, using the natural root vegetable to produce lager and selling it at a 25 percent lower price to standard lagers.
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