production of beer. The possibilities for the export of beer from Europe, on the
other hand, are becoming smaller and smaller.
Almost without exception, therefore, our breweries in Africa are constantly expand
ing their capacity. As suppliers of know-how our technical departments are closely
concerned in these activities.
A fundamental change in the relationship between Western industry and Africa is
reflected in the explicit endeavour by various African governments to strengthen
the position of their nationals with regard to the ownership and management of
firms which are controlled by Western enterprises. Although our training possibilities
for local employees have been utilized to the maximum, in several countries where
we operate the replacement of expatriate European managers has proceeded faster
than a proper training allows. It is self-evident that this is prejudicial to the efficiency
of the management.
Furthermore, especially recently, we have to contend with incidental and hardly
predictable interventions in business transactions, e.g. in the form of import regula
tions, transfer restrictions and tax increases. These measures largely arise from the less
favourable economic situation, which has an even greater impact on the foreign
exchange income of these countries whose balances of payments are governed by
the world market prices for tropical products and minerals.
Nigeria
The current expansion of the brewery of Nigerian Breweries Ltd. at Lagos is
proceeding according to plan. This brewery - as indeed also the breweries at Aba and
Kaduna - is continuing to produce at full capacity in order to meet the great demand
for its products. The combined production of the three breweries of this group is
at present more than i million hectolitres per annum, including the Heineken beer
brewed under licence.
Ghana
Owing to the prevailing shortage of foreign exchange facing Ghana, the remittance
of dividends and technical fees was still unable to take place, as a result of which our
untransferable receivables from Kumasi Brewery Ltd. rose to an even higher figure.
Sierra Leone
Sierra Leone Brewery Ltd., of Freetown, showed a satisfactory development. In this
brewery, in addition to Star beer, Heineken beer is also brewed under our licence.
