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KBL & BBL Launch Enterprise Development Programme Project Thusanang

10 May 2010

April 26, 2010

1. Kgalagadi Breweries (Pty) Limited and Botswana Breweries (Pty) Limited have rolled out their new innovating programme called Project Thusanang which translates into ‘helping each other through interdependence'.  This project aims to benefit Batswana by forging mutually beneficial relationships with farmers by sourcing grain locally, thereby empowering farming communities and taking import substitution to new heights.  Project Thusanang signifies the companies' commitment to partnering with small-scale subsistence farmers to develop value-added agriculture as a way of stimulating local economic growth and is expected to improve income levels and entrepreneurship among disadvantaged farming communities.

2. Smallholder farmers are central to KBL and BBL's local sourcing strategies as they involve more local farmers in their supply chain and have recognized the importance of enterprise development and the subsequent employment multiplier effect.  In this case, smallholder farmers are farmers who grow small volumes of produce, depend mainly on family members to do most of the work and hire casual labour during land preparation and harvesting.  These farmers typically only produce on relatively small plots (less than 10ha and often smaller).  The companies work with them to improve the reliability of supply and reduce dependence on imports, whilst in the process building up employment, local capacity and signifying a move away from subsistence-based agriculture towards a small-scale agribusiness model that will provide them with more disposable income.

3. Through Project Thusanang the companies will source more of their high quality raw materials from local suppliers, rather than relying solely on large regional and international suppliers.  The growth and development of these suppliers helps local communities, whilst delivering significantly to the business case through more direct and secure supply chain, improved quality, product innovations and the marketing opportunities that these relationships will bring.  Once fully rolled-out, Project Thusanang aims to deliver solid commercial objectives, ranging from improving the quality of the grain in Botswana to identifying alternative crops as a raw material for new, innovative products. 

4. The project will also firmly contribute to the companies' sustainable development in stimulating local economic growth and enterprise development to benefit subsistent farming communities.  A most substantive benefit is its potential for job creation.  This unique appeal of the project stems from the number of jobs that will be created indirectly in the local economy through the companies' sourcing strategy and their support for local entrepreneurs in the distribution chain; a phenomenon known as the job multiplier effect. 

5. "Enterprise development is an integral part of our business' long term sustainability, helping to create jobs and wealth in the communities where we operate," says Hloni Matsela, KBL's Managing Director.  "Encouraging enterprise development in our value chain is a key sustainable development priority for both KBL and BBL, and our activities in this area are numerous and well integrated into our day to day business."

6. Hloni Matsela explains that KBL and BBL's enterprise development initiatives have three main strands:  Investing in the company's value chain to support local suppliers; encouraging broader entrepreneurship in local communities; and supporting smallholder farmers. 

7. By undertaking Project Thusanang, KBL and BBL have added to their many achievements anchored upon their joint philosophy of the community-centred business model as a critical success factor to their businesses.  As KBL and BBL continue to broaden their horizons, sustainable development remains a central core of their business model.   These two companies remain committed in exploring mutual initiatives of impact that will help create a better future for Batswana and inspire business confidence whilst helping diversify the economy.     

Kgalagadi Breweries (Pty) Ltd      Tel: 3953619  Fax: 3901447 
Thapelo Letsholo Director of Corporate Affairs & Strategy   Mobile: 71324996
Mokoro Ketsitlile Corporate Communications Manager  Mobile: 74012259

This is an SABMiller subsidiary news release, first published in its local market on [26/04/2010].

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