9 February 2013

Tanzania: Investor in Mbeya Turns to Brewing

Dodoma — MEMBERS of Parliament learnt that an investor in Mbeya changed his investment plans from erecting a factory for farm implements to setting up a beer brewery.

Initially ZZK Mbeya, an investor who due to shortage of materials like iron ore, chose to change from his original investment and has started brewing beer, a move which apparently won government defence in the House.

The Minister for Industries and Trade, Dr Abdallah Kigoda, defended the investor, on grounds that it was almost impossible to carry on with the farming implements project since there were no materials like iron ore which is yet to be mined at Liganga.

"Investing in the project requires huge investment particularly in iron ore which has not been secured to date," he said. Earlier on, responding to a question from Mr Aliko Kibona (Ileje, CCM), the Deputy Minister, Mr Gregory Teu, said the evaluation done by the investor showed that the company would not realise any profit had it chosen to carry on with investment in the original project.

He said stiff competition from other farm implement industries, lack of raw materials, and outdated technology also contributed in cancellation of the project hence venturing into brewery business. T he investor in turn, according to the Deputy Minister will be brewing beer which according to an evaluation will create a lot of employment for residents in the locality.

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