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Can NBL survive Angola?

by Honorine Kaze

Diverse challenges are hampering Namibia Breweries Limited’s market sales in Angola.
However, NBL is not letting go of its chance of buffering earnings and consolidating its position within the Sadc region and remains steadfast to clinch a niche market in the oil-rich country.
The NBL export into the neighbouring southern African country comes with a stumbling block of a 50% import duty, hence influencing NBL prices on the ground.
They also experience challenges in the deliveries of products and money in the bank.
“Duties have always restricted real growth. There is also speculation that the duties might be increased in the near future. Another challenge is that most outlets purchase stock on credit and this can become a high risk in our business,” Antonio Simoes, NBL’s market manager for Angola and Mozambique pointed out.
It is also not a secret that the infrastructure and transport in  Angola are not always up to scratch due to the reconstruction of the country after the war, hence impacting on most businesses within the country and neighbouring countries.
The NBL beer market is mostly found in Luanda as it also faces problem in penetrating more regions within the country due to a problem of liquidities in the market. The devaluation of the Angolan currency, Kwanza, has been impacting greatly on its market share for the past four years; therefore, NBL has been faced with the decision to continually increase pricing of the products.
Despite all challenges faced by NBL for the past 10 years, it recognises Angola as one of its important beer export destinations, qualifying the country as its third largest clear beer market in Africa.
Simoes added that export is one key important aspect that sustains their brand and negotiations on better export agreement are underway in order to ease the costly burden that comes with it.
“The facilitation of bilateral trade agreements to reduce the duties on beer produced in Namibia and engagements with custom and excise on both sides to simplify cross-border processes can go a long way in enhancing trade and ultimately growing our economy,” Simoes emphasised.
NBL also exports to a number of other African destinations including Botswana, Zambia, Zimbabwe, Mozambique, Cameroon and Kenya.