Nile Breweries’ next 75 years depend on more than beer

As the brewer marks its 75th anniversary, local sourcing, tax policy, illicit alcohol and water efficiency are emerging as key tests of its next phase of growth

NEWS ANALYSIS | JULIUS BUSINGE | Uganda’s beer maker, Nile Breweries Limited, is looking to deepen local sourcing, improve water efficiency and address industry taxation and illicit alcohol as it marks 75 years of operations in Uganda, highlighting the business and policy priorities shaping its next phase of growth.

The brewer sources more than 98% of its raw materials locally, works with about 25,000 Ugandan farmers and spends more than Shs156 billion annually on local procurement. Its two breweries in Jinja and Mbarara have a combined annual production capacity of about three million hectolitres.

Company executives shared the figures with journalists during a tour of the Jinja plant on Oct.13, part of activities marking the anniversary under the theme “Beer and More”.

NBL’s Managing Director, Nkanyiso Mncwabe, said the company’s contribution extended beyond brewing to the farmers, employees, suppliers, distributors, retailers and communities connected to its operations.

“It is not only beer but also the impact that we create in the country,” Mncwabe said, adding that the company intended to maintain partnerships with Ugandan businesses as it looked towards its next 75 years.

The company sources barley, sorghum, cassava and maize from local farmers. The programme links agricultural producers to a large industrial buyer, while providing the brewer with a domestic supply base for key production inputs.

Officials also reported paying more than Shs450 billion in annual taxes since 2024. Between 2010 and 2025, its cumulative tax contribution to Uganda’s domestic revenue exceeded Shs5 trillion, according to the company data.

Tax and competition

Despite its local supply-chain investments, the brewer says illicit alcohol remains a challenge for the wider industry, affecting competition, government revenue and consumer safety.

Emmanuel Njuki, head of legal and corporate affairs at Nile Breweries, said the company was engaging Parliament, the Uganda Revenue Authority (URA) and the Ministry of Finance, Planning and Economic Development on tax arrangements for the business and the wider sector.

He said the company maintained a good working relationship with URA and remained optimistic about Uganda’s economic prospects and its industrialisation agenda.

The discussions reflect a policy concern for formal manufacturers: how to maintain tax revenues while ensuring that businesses operating within the regulatory framework can compete with products that evade applicable taxes and standards.

For policymakers, the challenge includes enforcing existing rules against illicit alcohol while assessing how the tax structure affects formal production, investment and the competitiveness of the wider sector. The company has not disclosed specific tax changes it is seeking.

NBL’s  anniversary also comes as it seeks to improve productivity across its agricultural supply chain. Njuki said the company was exploring better seeds, improved agronomic practices, technology and environmental initiatives to strengthen operations.

Water and quality

Water efficiency is another priority for the manufacturer, given the resource’s importance to brewing, agriculture and surrounding communities.

Mncwabe said the company wants to increase beer production while using less water. He reported that water-use efficiency per hectolitre of production in Uganda had improved by more than 20% since 2017.

He also said all communities in high-water-stress areas supported through the company’s initiatives in Uganda recorded measurable improvements in water availability and quality in 2025. The company is also supporting efforts to restore River Rwizi.

The focus on water stewardship links environmental commitments to operational efficiency, as manufacturers face pressure to manage resource use while maintaining output and quality.

NBL executives said its beer portfolio had also received more than 75 Monde Selection awards over the years, recognising product quality. Established in 1951, the company is part of global brewer AB InBev and produces brands including Nile Special, Club Pilsener, Eagle Lager and Castle Lite.

As the brewer enters its next phase, officials said, its performance will depend on maintaining reliable local supplies, improving production efficiency and working with regulators on industry challenges. The company’s 75-year milestone therefore highlights not only its manufacturing history, but also the importance of agricultural linkages, tax policy and responsible resource management to the future of Uganda’s brewing industry.

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