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Enterprise development

Encouraging enterprise development in our value chains

Colombia: Microcredit for shopkeepers

A local shopkeeper in Columbia

Bavaria Opportunities is a programme that provides access to credit for shopkeepers to help strengthen their business, increase their revenues and improve their quality of life and that of their families.

In Colombia, one of the main obstacles for micro-entrepreneurs is the lack of access to credit and other financial services. The opportunities to gain access to capital are scarce so they often have no choice other than resorting to informal loans which charge high rates of interest.

In August 2009, Bavaria piloted a micro-credit project at Comuna Uno in Bucaramanga. The results were so successful that one year later the programme expanded throughout Bucaramanga and its metropolitan area, Boyacá, Bogotá – southern areas – and Antioquia. It is gradually extending to cover the country.

A part of this project, Bavaria has formed a partnership with local financial institutions, including Financiera Comultrasan, Banco Agrario de Colombia and Bancolombia to grant small loans to informal, low revenue and growing micro-entrepreneurs who lack credit history, financial information or commercial guarantees. As a result, recipients are able to buy stock, purchase new equipment or repair existing assets, or use the funds for business growth.

As a part of this programme, entrepreneurs also have access to other Bavaria programmes, such as Educational Support for Shopkeeper’s Children and Grandchildren.

South Africa: Supporting owner drivers

A truck driver

Our South African subsidiary, SAB Ltd works hard to ensure its distribution strategy has a focus on identifying, mentoring and encouraging local suppliers. In 1987, SAB Ltd introduced its owner-driver project, which saw former employees of SAB Ltd form their own companies to distribute SAB Ltd’s products, including Castle Lager, to retailers.

About 70% of SAB Ltd and ABI deliveries are carried out by owner-drivers, many who have gone on to own more than one vehicle. The programme empowers drivers, develops sustainable businesses and jobs, and allows SAB Ltd to develop superior routes to market.

Uganda: Engaging with suppliers

Three men inside a bottling plant

In Novermber 2011, Nile Breweries hosted its inaugural Suppliers Day. A number of suppliers and key stakeholders were invited to the brewery in Jinja for a brewery tour, a briefing from the Nile Breweries management team and a question and answer session.

MD Nick Jenkinson also presented at the event on what Nile Breweries has achieved across the ten sustainable development priorities, also highlighting how they are similar to Uganda’s development agenda.

Following the success of the day, Nile Breweries now aim that this will become an annual event.

Colombia: Working with Small-scale Grain Farmers in Colombia

Small-scale Grain Farmers in Colombia

In 2008, Bavaria initiated its Grain Project to explore how it could better support local suppliers of malting barley to help ensure a sustainable long-term supply as well as increase levels of rural employment and economic development.

Read more about Working with Small-scale Grain Farmers in Colombia

South Africa: Taung farmer project

Farmers in South Africa

Before 1990 in South Africa, barley was only produced in the rain-fed region of the South Western Cape. However, due to the climatic risk of producing the crop in just one geographical area, SAB Ltd launched a project to identify and cultivate alternative crop producing regions in central South Africa. This also gave the opportunity to experiment with different barley varieties than those adapted to the Southern Cape environment.

The Taung project was launched in 1994 in partnership with the North West Department of Agriculture, Conservation, Environment and Rural Development and the local tribal authority.

Read more about Taung farmer project

Tanzania: Supporting the Southern African Growth Corridor to source local barley

Farmers in Tanzania

In Tanzania, in the past there have been limitations to growing barley such as the lack of modern farming techniques, basic farming equipment and variable rainfall patterns. These challenges have led Tanzania Breweries (TBL) to establish its ‘Project Saidiana’ programme which aims to increase the local production of barley.

Last year, TBL signed agreements with ten organised groups consisting of approximately 170 smallholder farmers from the Southern Highlands region. In 2011 TBL hope to procure 1,700 tons of malting grade barley from these farmer groups.

Read more about Supporting the Southern African Growth Corridor to source local barley

South Sudan: Creating local employment in Sudan

Local workers unloading a truck

White Bull Lager is the flagship product of Southern Sudan Beverages Ltd (SSBL) – the first brewery in Southern Sudan for 50 years. The brewery is the only local manufacturing plant in the city of Juba, and produces one of the few new formal consumer beer brands.

SSBL commissioned its brewery in South Sudan in 2009 and invested US$37m to build the facility in Juba. To date, its operations in the region have created employment for 200 Sudanese. Its pioneering land lease agreement ensures that the local community receives royalties from the development and benefits from the business’ continued success. SSBL, through SABMiller, is one of the largest private sector contributors to the South Sudanese economy, paying excise tax at both national and state level.

Read more about creating local employment in Sudan

Zambia: Local barley sourcing

Zambia - locally produced barley

In February 2011, consumers of clear beer in Zambia were able to taste the first brew made from high quality locally produced barley (the major ingredient in the production of clear beer). The project was successfully piloted by Zambian Brewries in 2009 and established the capability of farmers in Zambia to produce a high yielding, high quality crop.

The project was significantly expanded in 2010 when the first commercial crop was grown by 14 farmers from Mkushi, Mpongwe, Chisamba, Lusaka and Mazabuka.

About 1,600 hectares of irrigated land were planted in April and May of 2010 with a yield of 6.5 tons per hectare. This represented about 10,500 tons of barley or 8,500 tons of malt. The barley is used in the production of the company's premium clear beer brands - Mosi Lager, Mosi Gold, Castle Lager and Carling Black Label.