KBL faces uncertain future

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Local beverages giant, Kgalagadi Breweries Limited (KBL), is understood to have reached a tipping point in its struggles with the rising alcohol levy and tough beer regulations, with reports that further levy adjustments could force a relocation to South Africa.

Of  late, Sechaba Brewery Holdings, which holds 60% equity in the Kgalagadi Breweries group, has been the subject of intense market speculation following its shock announcement last December that it was weighing a Botswana Stock Exchange delisting.

This week, market insiders told BusinessWeek that KBL executives had already intimated that an increase to the alcohol levy, which currently stands at 50%, could trigger sustainability issues and force the 37-year-old group to drastic measures.

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