Zambia: Zambian Breweries says construction of malting plant not halted, the company is only reviewing its entire business operations

Zambian Breweries Plc. has clarified that, whilst it is reviewing its planned US $32.6 million investment in a malting plant as part of a review of its entire business operations, no decision to halt the project has been taken, 4-traders reported on October 30.

The company has said that the proposed increase in excise tax on clear beer from 40% to 60% in the 2014 National Budget will have an impact on demand resulting from an upward price adjustment. As a normal business practise, this expectation has prompted Zambian Breweries to take a review of its operations and investment plans.

It was reported previously that the company had decided to halt the construction of the plant.

Zambian Breweries Plc. is a subsidiary of SABMiller Plc., which is listed on the London Stock Exchange. Apart from investing in the planned malting plant at the Lusaka South Multi-Facility Economic Zone, (MFEZ), SABMiller Plc. is also investing US $26 mln in a new opaque beer brewery in Lusaka under National Breweries Plc.