Patrick Chitumba, Patrick.chitumba@chronicle.co.zw
THE festive season brings renewed optimism to Gweru residents as Go Beer Breweries prepares to resume operations after years of dormancy.
The Gweru City Council has allocated US$2,3 million to revitalise the brewery, a former revenue cornerstone for the city. This initiative is expected to bolster the city’s finances and service delivery.
Gweru Mayor, Councillor Martin Chivhoko, said recruitment for the brewery is underway, with operations anticipated to begin soon.
“Yes, Go Beer Breweries has started the recruitment exercise and those interested in joining the company can drop their applications at the brewery which is located in the light industrial area or apply online,” he said.
Cllr Chivhoko said the production of beer is expected soon while the infrastructure and equipment have since been set up.
He said the revival of Go Beer Brewery is crucial for the council’s revenue generation which will also improve service delivery.
To support production, the council cultivated 23 hectares of winter wheat, aiming for a daily output of 120 000 litres of traditional beer.
“We put 23ha under winter wheat at the Go Beer Farm, which we are going to use as raw materials for the brewery. We aim to produce our own raw materials for the brewery to make the business viable,” said Cllr Chivhoko.
In July 2020, the council announced that it had found an investment partner to revive Go Beer Brewery but the deal fell through.
The council has beer halls in most suburbs which have since been turned into revenue halls where residents pay their bills.
Cllr Chivhoko said the local authority is exploring other sources of revenue to avoid relying solely on ratepayers.
Go Beer Breweries, which closed in 2014 due to financial mismanagement and debt, had left a gap in the city’s revenue streams. Its revival could mark a turning point in diversifying income sources, reducing reliance on ratepayers, and rejuvenating infrastructure like idle beer halls.
After the council announced that it had shut down the company in 2014, municipal police and auditors immediately moved in and locked beer halls around the city to institute a probe into the company’s business activities. However, to date, no culprits have been brought to book.
At its closure, the beer establishment was reeling under a US$2,6 million debt and failed to honour its obligations at the Local Authorities Pension Fund.
Since the dollarisation of the economy in 2009, the cash-strapped local authority has been bankrolling the beer concern to the tune of over US$2 million for payment of Go-Beer creditors and employees who sued the council.
The beer concern lost equipment and cattle, which were attached to cover retrenchment costs, although the council managed to pay all retrenched workers in 2018.