The Managing Director of Kgalagadi Breweries Limited (KBL) Carlos Bernitt has shared his insights on Botswanaโs economic landscape, emphasising the opportunities and challenges facing the private sector, particularly the beer industry. His remarks follow the presentation of the 2025 Budget Speech by Finance Minister Ndaba Gaolathe.
Bernitt acknowledged the governmentโs efforts to diversify the economy away from mining, particularly diamonds, saying the shift opens new opportunities for businesses.ย
โEconomic diversification beyond mining presents significant growth potential. KBL is eager to contribute to Botswanaโs evolving economy and support the governmentโs vision for a more diversified economic model,โ he said.
However, Bernitt stressed the need for clearer and more consistent tax policies to ensure a level playing field for businesses. He highlighted the impact of recent tax increases on the alcohol industry, which ripple across the entire supply chain, from producers to consumers. โFair and balanced tax policies are essential for business growth. KBL advocates for open discussions with policymakers to ensure legislation that supports, rather than stifles, industry expansion and investment,โ he remarked.
He also pointed out that Botswanaโs excise tax and levy structures are among the highest globally, which could deter foreign investment in the sector. Regarding foreign direct investment (FDI), Bernitt expressed the brewerโs long-term commitment to Botswana, with its majority shareholder, AB InBev, planning to continue investing in the country for the next century.
However, he acknowledged challenges such as policy uncertainty, high taxes, and regulatory complexities like fiscal marking, which can dampen investor confidence.
โPolicy certainty and collaboration between the government and private sector are critical to attracting foreign investment and fostering a business-friendly environment in Botswana,โ he said. As part of its local growth strategy, KBL is nearing completion of a new beer powder production plant, expected to be operational within the next three to four months.
Bernitt also addressed the importance of local sourcing and agriculture, noting that KBL currently imports 85 percent of its raw materials. The company is actively exploring local alternatives, particularly sorghum, to support Botswanaโs agricultural sector. โKBL is committed to local sourcing, with trials underway for sorghum production. By supporting Botswanaโs agriculture sector, we aim to reduce imports and strengthen local supply chains,โ he stated. KBL is working closely with local suppliers to help them meet necessary quality standards, ensuring sustainable sourcing practices for the future.
Sustainability remains a key focus for KBL, with the company investing in solar energy solutions at its plants. This initiative not only reduces the companyโs carbon footprint but also aims to contribute excess energy back to the national grid, supporting Botswanaโs broader energy goals. โSustainability is a priority for KBL. Weโre implementing solar energy solutions at our plants to reduce our carbon footprint and contribute energy back to the national grid,โ Bernitt said.
Bernitt emphasised the need for stronger collaboration between the government and the private sector to create a business-friendly environment. He advocated for policies that foster economic growth rather than imposing additional financial burdens through excessive taxation. โBotswana has the potential to become a regional manufacturing hub. KBL is investing in local production, including a new beer powder plant, to drive exports and economic growth,โ he added.
Looking ahead, Bernitt highlighted the potential of Botswanaโs creative and digital economy, particularly with the proposed introduction of VAT on digital trade. He noted that this development could have far-reaching implications for businesses operating in this space. โThe creative and digital economy offers immense potential for Botswana. By supporting innovation and digital trade, we can create jobs and drive economic diversification,โ he said.
Bernitt reaffirmed KBLโs commitment to Botswanaโs long-term growth, stating, โKBL is committed to Botswana for the next 100 years. Weโre investing in local production, sustainability, and partnerships to support the countryโs long-term economic growth.โ He also expressed optimism about the potential of Botswanaโs tourism and agriculture sectors, which he believes can create jobs, boost exports, and reduce reliance on the diamond sector.
โBotswanaโs tourism and agriculture sectors hold great promise. By focusing on these industries, we can create jobs, boost exports, and reduce reliance on the diamond sector,โ Bernitt concluded.
