Vasari Beverages, an investment group that buys consumer drinks businesses, completed a $100 million fundraising in June 2019 and planned to expand its operations in Ethiopia while looking for acquisitions elsewhere in Africa and in Asia, The Africa Report said. Vasari holds stakes in Dashen Brewery, one of Ethiopia’s largest brewers, and in the Rorank distillery, which makes spirits under the Super Eagle and Crystal brands.
Vasari chief executive Vivian Imerman said Ethiopia’s alcoholic drinks market had “very strong growth prospects.” The magazine pointed to the country’s population of about 105 million, the second largest in Africa after Nigeria, and a median age of 17, one of the youngest on the continent. The International Monetary Fund expected Ethiopia to be Africa’s fastest-growing economy in 2019.
The main companies in the market were Heineken, Diageo, Dashen, BGI Ethiopia and Habesha, and investment in the sector was accelerating. The government had recently tightened rules on alcohol advertising.
The magazine also listed the risks. In April the World Bank warned that political disruption and social unrest could slow growth by cutting investment, tourism and exports. The Economist Intelligence Unit, a research firm, still expected strong growth and said Prime Minister Abiy Ahmed’s government would push ahead with reforms and sell stakes in state-owned companies.
Sources: The Africa Report