Heineken, the world’s second-largest brewer, started building a $100m plant in Mozambique as it seeks to compete with its larger competitor, Anheuser-Busch InBev, in the southeast African country.

The brewery, to be located in Maputo province, will have a capacity of 800,000 hectolitres and will start production in the first half of 2019, Heineken said on Monday.

The world’s two beer-making giants are expanding in Africa to take advantage of rising household incomes and faster sales-growth rates than in more mature markets.

Heineken has units in Nigeria, where it brews the country’s Star lager, and the Democratic Republic of Congo. In April, the Amsterdam-based company opened a new brewery in Ivory Coast at a cost of about €150m.

AB InBev, which last year bought SABMiller to become the world’s largest beer maker, brews the 2M, Laurentina and Manica brands in Mozambique.

The country’s economy is set to grow 4.7% this year, according to the International Monetary Fund.

Mozambique, which defaulted on its dollar debt this year, has a population of 29.5-million.


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