Mmegi/The Reporter (Gaborone)

Botswana: KBL Exports to Zambia, DRC Not Affected By Levy

Kgalagadi Breweries' clear beer export to Zambia and the DRC has not been affected by the 30-percent levy slapped on alcoholic beverages by the government towards the end of last year.

The company's Director of Strategy and Corporate Affairs, Thapelo Letsholo, says the levy does not apply on exports.

KBL started supplying Zambia and the DRC markets with clear beer and soft drinks two years ago after it won the award of Best Brewer, beating nine other breweries, among them Zambia, Lesotho, Swaziland, Mozambique, Tanzania, Ghana, Uganda and India.

The award is given by SABMiller to the brewery that displays high adherence to the Manufacturing Performance Index (MPI) scorecard.

The award was the result of a series of successes in the year preceding its bestowal. These included Carling Black Label's 10 out of 10 quality rating and the Best Castle Award, as well as various other impressive results across the scorecard. The recognition opened doors for KBL products in the lucrative DRC and Zambian markets.Letsholo says KBL currently supplies the Zambian and DRC markets with clear beer and soft drinks, but is unwilling to reveal the export volumes. Although SABMiller also operates in both countries, its breweries can source brands or packs from other entities where they cannot meet either the quality or capacity required.This arrangement will go on for this year until such a time that the two SABMiller entities in Zambia and the DRC determine that they can satisfy their own markets, according to Letsholo.

"The import or export, as the case may be, is usually not for a defined period of time but per order basis," he says. "Therefore, we cannot say with certainty when the current arrangement will cease."

KBL has been importing beer in returnable bottles from South Africa for years. But the company commissioned a P24-million plant for manufacturing non-returnable bottles in December last year.

Letsholo says when the plant is fully operational, KBL will stop importing bottled beer from South Africa.


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