SA brewery set for Okahandja

BY: JO-MARÉ DUDDY

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
proposalÉto help the brewer gain access to a licence,
Victo said.
“This is no rent-a-darkie deal,” Victor said, describing
the Onyewu team as “down to earthµ and people who
believe in “pulling our sleeves up”.
The company has six sharehmlders: 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