SABMiller will spend US$34m to build its first brewery in Namibia, stepping up competition with an alliance between Diageo and Heineken in the region.

SABMiller plans to begin work on the 220,000 hectolitre capacity brewery in the second half of calendar 2010, it said today (23 April).

Namibia’s Government last year granted the brewer a licence to brew and bottle beer in the country.

By building a facility there, SABMiller will step up competition against a tri-party alliance between Diageo, Heineken and their joint-subsidiary, Namibia Breweries.

“We have been importing beer into Namibia for over 20 years and such a significant investment symbolises our current optimism in the country,” said SABMiller’s representative in Namibia, Cobus Bruwer.

Namibia has a per capita beer consumption of 40 litres, compared to an average of five litres across Africa and around 56 litres in neighbouring South Africa.

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