Heineken Ethiopia Replaces $1.4bln Of Imported Inputs With Local Barley

By Mintesinot Nigussie  |  September 3, 2026

Heineken Ethiopia has replaced imported brewing inputs worth more than 1.4 billion US dollars with locally grown barley since entering the Ethiopian market 15 years ago, according to the brewer.

The shift has seen the company expand its barley sourcing network from about 2,500 farmers in 2011 to more than 120,000 today, making domestic agricultural sourcing a major component of its Ethiopian operations.

Heineken says it achieved 100 percent local sourcing of raw barley in 2023. The company says the move has reduced its reliance on imported inputs while creating a larger market for Ethiopian barley producers.

The development comes as Ethiopia seeks to reduce import dependence and increase domestic production of industrial inputs, particularly in sectors that have traditionally relied on foreign supplies.

The beer maker launched its local barley sourcing programme in 2013, two years after entering Ethiopia through the acquisition of the Harar and Bedele breweries. The programme has since expanded to involve farmers across several barley-producing regions.

The company has invested more than one billion euros in Ethiopia since its entry into the market. A major part of that investment was the Kilinto brewery, which was inaugurated in 2015 following an investment of 310 million euros.

The brewery, located near Addis Ababa, initially had annual production capacity of 1.5 million hectolitres and complemented the Harar and Bedele facilities acquired by Heineken.

The brewer has continued to invest in its Ethiopian manufacturing operations. In 2026, it introduced Desperados to the local market after investing nearly 500 million birr in production equipment.

Heineken Ethiopia currently employs more than 2,500 people and works with about 400 local suppliers annually. The company estimates that its wider value chain supports about 137,000 jobs.

Its operations have also generated significant government revenue. Heineken says it has paid more than 103 billion birr in taxes during its 15 years in Ethiopia and has received recognition as a leading taxpayer for eight consecutive years.

The company’s local portfolio includes Heineken, Harar, Bedele, Bedele Special, Walia and Desperados, as well as the non-alcoholic Sofi and Buckler brands.

Beyond its commercial operations, Heineken says more than 82,000 community members have benefited from its programmes. More than 4,000 people have benefited from its housing initiative, while the company says it has worked with employees and partners to restore more than 7,400 hectares of land and plant or naturally regenerate about 5.5 million trees.

Heineken Ethiopia marked its 15th anniversary on September 2 at its Kilinto brewery in Addis Ababa, bringing together customers, suppliers and business partners.

Source: FSX Business News