In a bid to tap into the burgeoning beer demand in South Africa, Eswatini Beverages Limited (EBL) is gearing up to significantly boost its export capacity. The company’s Country Director, Doreen Tumureebire, revealed that after resolving key issues last year, EBL is now poised to enhance its presence in the South African market.

Tumureebire outlined EBL’s ambitious plan to export at least 28,000 hectoliters (equivalent to 2.8 million litres) of beer to South Africa, with an estimated value of E30 million. However, she highlighted that a substantial portion of the revenue, E10 million, is allocated to taxes.

Since the beginning of the year, EBL has already dispatched 5,000 hectoliters of beer to South Africa and aims to ramp up exports to achieve the 28,000 hectoliters target. The company is primarily focusing on exporting Carling Black Label beer, which is currently experiencing high demand in South Africa due to local breweries struggling to meet market needs.

To facilitate increased exports, Tumureebire emphasized the necessity of reducing export levies, citing the example of neighboring Mozambique, which imposes lower taxes on beer exports, giving them a competitive edge.

Despite the push for expansion, EBL remains committed to addressing issues of alcohol abuse and underage drinking. Tumureebire highlighted ongoing educational initiatives, including roadshows aimed at raising awareness and promoting responsible consumption.

Recent data revealed that in 2022, EBL contributed E250 million in taxes, underscoring its significant role in the local economy. An Oxford Economics study highlighted the beer industry’s substantial contribution to Eswatini’s economy, with beer-related economic activity accounting for two percent of the country’s national tax revenue.

Furthermore, the study indicated that the sector generated approximately E450 million in tax revenues, supporting E970.2 million in gross value added (GVA) contribution to Eswatini’s GDP. EBL played a pivotal role in this economic landscape, contributing E826.2 million to the GVA, with an additional E144 million from the downstream value chain.

EBL’s digitization strategy, focusing on automation and mobile payment platforms, aims to streamline operations and enhance customer convenience. Tumureebire emphasized the importance of embracing new technologies to drive efficiency and reduce risks associated with cash handling.

As EBL charts its course for growth, the company remains cognizant of its broader social and economic responsibilities, striving to balance expansion with responsible business practices and community welfare.