Eswatini Beverages Limited Poised for Major Beer Export Deal, Faces Tax Hurdles

Eswatini Beverages Limited (EBL) is on the brink of solidifying a significant beer export deal with South Africa, offering promising prospects for the Eswatini economy. However, the company faces substantial tax challenges that could impede its ability to fully capitalize on this lucrative opportunity.

Doreen Tumureebire, the Country Director of EBL, recognizes the significant economic impact of exports, particularly citing the Carling Black Label deal, which generates approximately E20 million in tax revenue for Eswatini. However, Tumureebire underscores a critical obstacle: the burdensome taxes imposed on beer exports.

“Out of the E30 million generated from exporting 28 million liters to South Africa, we allocate about E20 million to taxes,” Tumureebire explained, highlighting the substantial portion of revenue diverted to taxation due to exporting.

Tumureebire points out the competitive disadvantage faced by EBL compared to neighboring countries like Mozambique, which do not impose similar taxes on beer exports. This tax discrepancy makes Mozambique a more appealing option for South African bulk buyers.

“We are urging for a revision of the export levies to facilitate increased exports and revenue generation for the country,” Tumureebire emphasized, advocating for a decision to alleviate the tax burden on EBL’s export activities.

Highlighting the importance of collaboration between EBL and the Eswatini Government, Tumureebire proposes a comprehensive review of export levies to enhance Eswatini’s competitiveness in the regional market.

The call for tax reform underscores EBL’s determination to leverage export opportunities for economic growth while navigating regulatory challenges. As discussions continue between EBL and government stakeholders, the outcome remains pivotal for the future of Eswatini’s beer export industry.