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Commentary
What happened to our breweries?
IT is interesting to observe how some of my friends are committed to the places they work in. Collectively, we always amusedly watch how friends from BRALIRWA and EABL start looking around for each of their company’s branding at whichever venue we happen to all meet at during the weekend.
Once, a friend from ORANGE Uganda met another mutual friend of ours and proceeded to have a lively discussion about the telecom industry in the region.
Upon finding out he was from ORANGE, she promptly changed the conversation and moved to another table, where most of her colleagues from MTN Rwanda were seated. A perfect example of job commitment at all times, even after office hours, especially based on the fact that they are all passionate marketers.
It was through a recent conversation with some of these experienced and passionate marketers that I got to learn a few things regarding regional national breweries.
Of late, there have been new beverages, alcoholic and non-alcoholic, which have been introduced into the Rwandan market. Most of these are owned by international brewery corporations such as BRALIRWA, in which 75 per cent shares are owned by the Heineken Group, and East African Breweries Limited (EABL) which is owned largely by renowned global premium drinks company – Diageo Plc.
EABL owns about 80 per cent shares of Kenya Breweries and the same applies for Uganda, where 98.2 per cent is owned by the same corporation. Impressive numbers, and even more impressive is the increase in production capacity of these newly acquired breweries, such as the case of Tanzania Breweries which was taken over by SABMiller (South African Breweries) in the early 90s.
The marketers expounded more and more, until a thought occurred to me. None of these breweries are largely owned nationally. I may be one of the last people to learn about this as I was quite green about the brewery sector until then, but it was slightly disconcerting to know that the majority of shares in Kenyan, Ugandan, Rwandan and Tanzanian breweries are largely owned by international, not national companies.
I am aware that this is the way of business and that takeovers of national entities by huge, more experienced and wealthier conglomerates; the effects of globalization; and the potential for increased national revenue through such multi-national corporations may explain why all the majority shareholders of East African breweries are international. Still, it didn’t lessen the wistful thinking as to why the reverse couldn’t be.
In any case, it was good food for thought to know that the next time I see someone praising the taste of a particular beer, I’ll wonder if they know that it is most likely owned by a company in a distant land, and not a national one as I previously thought.
Contact email: deempyisi[at]googlemail.com
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Comments
This is arguably the most weird commentary to be published by the new times- as an economist, this piece ignores all the fundamentals. It is excruciating to see how this article is poorly written: 1) I am not sure what the author aims to achieve, and 2) Maybe she should begin drinking the local brew, instead of making ignorant comments- what a waste of space!
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So what Diana ?? !! We are tirelessly and obsessively calling and even begging for "FOREIGN INVESTORS" to come and own these "national entities", to the point of even creating a huge, "budget guzzling" entity to facilitate that "sell out" ! Ask your friend Clare A. But, you should not be disconcerted at all; I am told that it is for my well being. But I can foresee that it will take us another 200 years to deconstruct this "ECONOMIC COLONIZATION" by the same former political masters.
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The article on my part actually seems to be like a mind opener. True to her words so many people for sure, like the author and I, had no clue about the real ownership of this big companies. It's not a waste of space to some of us but I believe people who like engaging in thoughts outside the box have found it truly benefiting.
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Diana, Your article is mind stimulating whoever say the opposite, has not understaod your arguements. Why should be proud of foreign manufactured instead of local?. Here the Swedish were very proud of Volvo until the Chinese bought the comapny from them! In England, the Germns bought the Rover Group which makes Land Rovers etc the people were disapointed! (I was a student in England by then), In USA people are calling on down scalling of selling their industries etc. Why
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Nice article, Diana, and some of the questions we should be asking ourselves. My comment to Mr. Styles is instead of calling the article a waste of space, please share with us your views as an economist on why Diana's arguments are ignorant. We should promote debate and not personal attacks.
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A very poor article! I wonder how it passed through the editors of the newtimes... Really bad article!!!!
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This is a horrible article. It shows a serious judgement flaw from the editorial team!!! Please save us from such kind of work in the future!!!
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Diana,You are a good analyses keep it up.You can be one of the voice for the future of Africa.Cheers lady
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This is globalisation and it is here to stay! You could think that you are protecting yourself but instead you are kill ourself "economically". Our markets are open. Believe it or not. If others are smart in doing business we have to become smarter otherwise we will disapear "businessly". This article is thought proviking but awaken us to the reality.
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This article is very interested. This Girl of Pr Mpyisi she very intergent. Ample time is needed to debate on this article, but it is very hard b'se this world don't have justice all sectors. "Abakire si abantu" White peoples are very intergent when they defending their interests
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In the crisis, do not sell your fixed assets to foreigners. USA,EU are nationalising their wealth, ask Africans to privatise: what do you thing. And there is asymmetric power/information of bargaining, purchasing. This means the markets are not properly functionning. Do not sell , keep your resources until you privatise for nationals with tight control.
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