Gov’t hints diminishing interest in beverage industry
CEO of Diageo Global delighted over investment in Ethiopia
Following the coming of giant international breweries to the country, the beverage industry in Ethiopia has been showing growth in the past couple of years which in turn is attracting international business figures like Ivan Menezes, Chief Executive Officer (CEO) of Diageo Global, who were in town this week to oversee his subsidiary in Ethiopia. However, this fast-paced expansion exhibited in this industry might no longer be the case in the foreseeable future.
Asked by The Reporter about the current situation in the beverage sector, Minister for Communication and Information Technology and Coordinator of the Finance and Economic Cluster with the rank of Deputy Prime Minister, Debretsion Gebremichael (PhD), hinted that his government may no longer continue incentivizing the industry the way it has been doing in the past few years due to the belief that local consumption should be discouraged to maintain a healthy society.
However, acclaiming the linkages the beverage sector has brought about between the manufacturing and agriculture sectors, the Deputy PM echoed his government’s stance about discouraging alcohol dosages; rather saying export is more preferred. Yet, the growing beer business in Ethiopia has been acclaimed for creating more new jobs and sustainable markets for smallholder farmers. Diageo alone has a contractual agreement with six thousand smallholder farmers to supply barely to the brewery.
Read more at: The Reporter