The company makes a range of beer and soft drinks
The East African Community (EAC) has granted Bralirwa Ltd, Rwanda’s biggest beer and beverage manufacturer, a duty remission on key industrial inputs, allowing the company to import sugar and raw materials tax-free until June 30, 2025.
The decision, published in the latest EAC Gazette, is part of a routine mechanism that enables partner states to support industries considered essential to their economies.
Across the region, governments frequently apply for waivers on behalf of manufacturers to lower production costs and enhance competitiveness.
A duty remission is a tax incentive that allows businesses to import specific goods or raw materials at a reduced or zero import duty rate.
Governments and trade blocs, such as the EAC, grant these exemptions to support key industries, reduce production costs, and promote economic growth.
Under this system, manufacturers can import essential inputs at a lower cost, making their final products more affordable.
However, the waiver usually applies only if the goods are used domestically. If the finished products are sold in other EAC partner states, they attract normal duties and levies under the Common External Tariff (CET).
Boosting Rwanda’s Beverage Industry
Bralirwa Ltd, a major producer of beer and soft drinks, will benefit from a 0% import duty on 10 million kilograms of refined sugar and 8 million kilograms of other sugar for industrial use.
The tax relief aims to ensure affordable production of beverages while stabilizing local supply.
Additionally, the company has been approved to import a range of raw materials for beer production, including malt (both roasted and unroasted), maize grits, yeast, colorants, and disposable beer tubes, among others.
Packaging materials like bottles, PET closures, aluminum foils, and Heineken-branded labels are also included in the waiver.
The move is expected to help Bralirwa maintain stable product prices in Rwanda and improve its ability to compete in the regional market. However, the EAC has stipulated that if Bralirwa exports its products to other partner states, they will be subject to normal duties and levies.
Bralirwa’s financial performance has been strong, with profits for the first half of 2024 (January–June) rising to Rwf 14.8 billion, a 15.1% increase compared to the same period in 2023.
The company is engaged in fierce competition with its main rival, SKOL Brewery, as both brands battle for dominance in Rwanda’s growing beer market.
The latest duty remission could give Bralirwa an added advantage in pricing and production efficiency, enabling it to retain its market share and sustain profitability amid the competition.
A Common Practice in the EAC
While this waiver benefits Bralirwa, duty remission is a common practice among EAC member states. Countries frequently seek tax exemptions for companies in strategic sectors such as sugar, textiles, cement, and pharmaceuticals to promote industrial growth.
Similar programs have been granted to Uganda’s sugar manufacturers, Kenya’s textile industry, and Tanzania’s cement producers in previous years. These exemptions help local businesses lower production costs, protect jobs, and attract investment.
By securing this duty waiver, Rwanda is ensuring that Bralirwa remains competitive, especially as regional integration deepens under the EAC Customs Union.
The decision aligns with the broader strategy of supporting manufacturers in vital sectors, a practice that benefits consumers and economies alike.
With the June 30 deadline in place, industry experts will be watching closely to see if the waiver is extended beyond mid-year—a possibility that will depend on economic conditions and policy decisions by the EAC Council of Ministers.
