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Thursday 22 August 2013 3:14 am

SABMiller doubles brewing capacity in Uganda

By: Chris Harlow

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SABMiller has announced the official opening of its second brewery in Uganda following a $90m (£57.7m) investment (release).

Construction of the brewery in Mbarara, western Uganda began in February 2012 and has been operational since April this year. The new facility will double the potential brewing capacity of SABMiller’s Ugandan subsidiary Nile Breweries to 3.6m hectolitres.

Clear beer volumes in Uganda have been growing at a compound annual rate of 11 per cent over the last six years, the company says, and is expected to continue at this rate for “the foreseeable future”, thanks to high GDP growth and a rapidly expanding population. Western Uganda is the fastest growing regional beer market in the country.

Commenting on the new brewery's opening, SABMiller Africa managing director Mark Bowman said:

The growth potential in Uganda, particularly Western Uganda, is significant and the new brewery in Mbarara will allow us to realise the opportunity. Building a second brewery in Uganda is part of our strategy to invest in new capacity across Africa so that we are in a strong position to capitalise on the continent's long-term beer market growth over the coming decades.

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