Tanzania Breweries Limited (TBL) plans to build a USD50m malt plant in Iringa to meet the increasing demand for malt in Tanzania.
Roberto Jarrin, Managing Director of TBL Group told local media that the project will go ahead if the government takes measures related to the remission of excise duty on locally sourced malt.
According to Jarrin, beer produced from locally-sourced malt should be eligible for a 20% reduction of excise duty, a practice which has been introduced in other East African countries to stimulate local extraction of raw materials.
TBL’s main activities include the production, distribution and sale of malt beer, non-alcoholic malt beverages and alcoholic fruit beverages in Tanzania.
It operates breweries in Dar es Salaam, Arusha, Mwanza and Mbeya and 10 depots throughout the country.
TBL also produces malt at its malting plant in Moshi, which has a production capacity of 15,000t.
Malt is a key ingredient in manufacturing beer. Beer consumption in Tanzania was estimated at 10l per capita in 2014 and is projected to reach 12l by 2019, according to Business Monitor International (BMI).