Foreign companies are reportedly jostling to buy the last brewery owned by the Ethiopian government, a week after it sold two its beer producers to Holland’s Heineken.
South African, British and Dutch breweries have put bids for Meta Abo brewery, which brews one of Ethiopia’s most popular beer brands by the same name.
The brewery is located about 20 kilometers west of the capital Addis Ababa.
Last week, Heineken, one of the world’s biggest breweries sealed its takeover of two of Ethiopia’s most famous breweries for US$ 163 million.
Heineken took over Bedele and Harar breweries from the government for US$85 million and US$78 million respectively.
The fresh bids for Meta Abo will have to compete with those from South Mellor, South-West Development, Diageo‘s John Walker & Sons, Scotch Whisky Distillers and Heineken.
According to the Privatisation and Public Enterprise Supervision Authority (PPESA), the Meta Abo brewery has US$ 30 million worth of assets.
Heineken’s bid for Harar Brewery was won without competition, but the company’s bid for Bedele Brewery had to beat three other bids.
Heineken beat the 70 million dollar bid from South-West Development had put a US$70 million bid, BGI (US$68 million) and Carlsberg (US$64 million).
Heineken said it will continue to brew local brands such as Bedele, Harar and Hakim Stout, which have a combined market share of 18%.
The breweries have a total capacity of about 15 million gallons a year.
Ethiopia is Africa’s second most populated country with 85 million people and its beer market has been growing by at least 20 percent per year over the past five years, compared to a Gross Domestic Product growth of 8% percent.
Source: The Africa report