Foreign investment in Ethiopia's beverage industry is showing a huge increase as global groups are increasingly attracted to the industry, stated an Ethiopian Food, Beverage and Pharmaceuticals Industry Development Institute report.
The Institute says investment in alcoholic, non-alcoholic beverages and soft drinks as well as the stimulants industry have shown a tremendous progress during the past decade.
Institute Beverage Processing Directorate Director Aklilu Kefyalew said multinational beverage companies are continuing to increase their presence in Ethiopia's rapidly growing economy.
"Ethiopia is attracting more investment as a business and world tourism destination and beverage investment has become the lucrative market for the wine and beer industry."
Breweries are helping transform Ethiopia's business landscape with alcoholic beverage industries having a lion's share in terms of investment and market coverage, said Aklilu.
By the end of the fiscal year, the country's export revenue from the alcoholic beverage industry is expected to hit US$17 million. More than US$6million has already been secured during the past six months, he added.
In line with its policy of encouraging private investment, the Ethiopian government has privatised state-owned breweries including Harar and Meta.
The director said despite the rapid expansion of brewery investment and the inefficient supply capacity of malt factories has been a major constraint in the area.
BGI Ethiopia Brewery Marketing Manager Isayas Hadera indicated the emerging middle class income and population trend as key growth drivers of alcoholic beverage companies in Ethiopia.
"The domestic market is rising from 15 to 20% every year. We are witnesses rapid growth in the previous decade which has allowed us get a better market share in the country," he said.
With annual production capacity of three million hectoliters of beer, BGI is exporting beer to South Sudan, Djibouti, USA, Israel and Europe, which is showing increment every year.
Dashen, BGI, Heineken, Meta, Raya, Habesha and Zebidar are the seven beer companies operating in Ethiopia which collectively run 11 factories. Four giant liquor and two wineries also make part of Ethiopia's growing beverage industry.