Abstract:

"The government made a courageous decision to allow the brewers to
introduce beers made from local raw materials at zero excise duty in
December 2002. This enabled the brewers to produce and market high
quality beers made from predominantly local ingredients, priced within the
reach of low income consumers, who previously could only afford to drink
informally-produced liquor.
This initiative allowed small scale farmers the opportunity to start growing
sorghum and barley as cash crops, as a substitute for imported barley malt,
as part of the government's Poverty Eradication Action Plan.
Since the introduction of Local raw material beers, industry volumes have
increased from 9 million cases in 2003, to over 12 million cases this year,
while excise and VAT revenues have increased from Ush 80 billion to over
Ush 100 billion during the same period.
Nile Breweries invested over US$ 3 million in capital projects in its
2005/2006 financial year, and will invest a further US$ 4 million in
2006/2007, to help keep pace with the demand for its Eagle beers.