SA brewery set for Okahandja

NEARLY N$250 million will flow into Namibia’s thirsty economy after a black economic empowerment (BEE) deal between South Africa’s SABMiller and a local consortium secured the global beer giant a much sought-after brewing licence in the country.

Construction on an SABMiller brewery – most likely at Okahandja – may start as early as December, and the first locally brewed Castle Lager and Black Label could be for sale by 2011, according to Samuel Jafet Victor, one of SABMiller’s new partners in Namibia.About 160 people will be sure of a permanent pay cheque once production starts, he told The Namibian yesterday.Victor is the Chairman of Onyewu Holdings (Pty) Ltd, an established BEE investment company that now owns 20 per cent of the newly formed SABMiller Namibia.Twenty per cent of the shares in the local company has further been allocated to three regional trusts for exclusive grassroots benefit: the Omaheke and Karas regions each got seven per cent, while the North collectively holds six per cent.Spicing the deal is the fact that the regions won’t have to wait for the brewery to become profitable before their interests pay off.They will receive a ‘substantial’ amount annually until the company can pay dividends, SABMiller Financial Director and Project Manager for Namibia, Garth Saunders, told The Namibian in a teleconference. The payment will be irrespective of whether the local brewery makes money or not and will continue until the dividends have reached ‘the level we think it should be at’, added Castle Brewing Namibia Managing Director Cobus Bruwer.It took four years to mature the SABMiller Namibia transaction.Looking for their next strategic investment, Onyewu Holdings approached SABMiller in 2004 with a BEE proposal to help the brewer gain access to a licence, Victor said.’This is no rent-a-darkie deal,’ Victor said, describing the Onyewu team as ‘down to earth’ and people who believe in ‘pulling our sleeves up’. The company has six shareholders: Victor, Lyndon Gaidzanwa, Hendrik Dawids, Eliot Shimuafini, Ndawedapo Luke Nepela and Andrew Kandjibi.Onyewa, Oshiherero for elephant, was picked as the name of the company ‘because we intend becoming one of the big five’, Victor said.Clinching 26 per cent of the shares in Mondipak (Namibia) in January 2003 put the company well on its way – being the first BEE deal Anglo American concluded locally. Since then, Onyewa has increased its stake in Mondipak to 40 per cent.In addition, it acquired all the shares in Tube-O-Flex and H&H Transport.With their latest deal, Onyewa will have a seat on the SABMiller Namibia board. According to Victor, the company will enjoy the rotating chairmanship and casting vote for the first year.Two additional BEE shareholders will also serve as directors, he said.Commenting on the plans of SABMiller Namibia, Saunders told The Namibian the local brewery, together with the fact that the company will now be allowed to use returnable bottles, will make their beer ‘a bit cheaper’. Just how big a market share the company is now targeting remains SABMiller’s secret, though.’The consumers will choose,’ was all Saunders wanted to say.Arch-rival Namibia Breweries (NBL) also reacted to the news yesterday.Hardly ‘prosting’ the deal, NBL nevertheless welcomed ‘fair competition on a level playing field’.’We have confidence in the skills, passion, commitment of our people, as well as the strength of our brands to continue to deliver great results to our key stakeholders and thereby contributing towards the sustainable development of our country and its people,’ NBL Managing Director Desmond van Jaarsveld said in a statement.jo-mare@namibian.com.na