By Patrick Kagenda & Agencies
A report revealing the economic and social contribution made by Nile Breweries limited (a subsidiary to SABMiller plc) to Uganda was last week released at the Africa World Economic Forum.
Nile Breweries supports over 44,000 jobs in Uganda directly or indirectly, according to a report released by its parent company, SABMiller last week during the Africa World Economic Forum meeting in South Africa.
The report by Prof. Ethan Kapstein of INSEAD also showed that Nile Breweries had injected US$92 million into the Ugandan economy.
Prof. Kapstein’s study estimated Nile Breweries impact on issues such as household income, employment and government revenue, as well as its broader social and environmental impacts.
US$ 55 million was paid in taxes of which US$28 million was paid directly by Nile Breweries.
SAB Miller CEO Graham Mackay said during the release of the report that “Good business is good for development so long as companies operate in a responsible and accountable manner”. In particular, the report looked at the effects on local farmers of the Eagle Lager project.
Since 2002, Nile Breweries has championed the introduction of Eagle Lager made exclusively from locally grown sorghum to provide low income consumers with a safe beer.
Today, the brand is responsible for 50% of Nile Breweries’ sales and provides 8,000 farmers with approximately 70% of their income.
In the National Budget read on June 11, Finance Minister Syda Bbumba announced a 20% reduction on excise tax on beer manufactured using locally grown ingredients.