KBL faces uncertain future

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Local beverages giant, Kgalagadi Breweries Limited (KBL), is understood to have reached a tipping point in its struggles with the rising alcohol levy and tough beer regulations, with reports that further levy adjustments could force a relocation to South Africa.

Of  late, Sechaba Brewery Holdings, which holds 60% equity in the Kgalagadi Breweries group, has been the subject of intense market speculation following its shock announcement last December that it was weighing a Botswana Stock Exchange delisting.

This week, market insiders told BusinessWeek that KBL executives had already intimated that an increase to the alcohol levy, which currently stands at 50%, could trigger sustainability issues and force the 37-year-old group to drastic measures.

Editor's Comment
UDC's 100 Days: Please deliver your promises!

We duly congratulate them to have ousted the long ruling Botswana Democratic Party (BDP) from power. Prior to taking power from the BDP, the coalition had made several election promises that are credited for influencing change and swaying the people to vote in its favour.The party had made an undertaking, which its leader and President Duma Boko consistently bellowed in his campaign trail. These undertakings were promises that Batswana would be...

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