Heineken to transfer brewery in conflict-hit eastern DR Congo to Mauritian firm

Heineken has agreed to transfer its brewery in Bukavu, the second-largest city in the conflict-affected eastern Democratic Republic of the Congo, to Mauritian firm Synergy Ventures Holdings Ltd. for just 1 euro, the Dutch brewer announced on Wednesday.

The handover is expected to be completed by the end of the year, according to Reuters.

The company said the move was “driven by a humanitarian objective to safeguard jobs and livelihoods, maintain vital community services and prevent misuse of the facility in a volatile security environment.”

In June, Business Insider Africa reported that Heineken had withdrawn its staff and lost operational control of its facilities in eastern Democratic Republic of Congo due to escalating conflict.

Earlier in February, the company had suspended operations in three cities after some breweries were damaged and depots looted during clashes between government forces and rebels.

Rwanda-backed M23 rebels captured Goma, the region’s largest city, in January, followed by Bukavu in February. The fighting has killed thousands and displaced hundreds of thousands more. Rwanda denies backing M23, claiming its actions are purely defensive.

Heineken said the Bukavu brewery previously employed around 1,000 people directly and indirectly. Under the transfer, Synergy Ventures will assume full responsibility for operations, employee safety, and tax obligations.

Heineken retains a buyback option for up to three years if conditions allow for viable operations.

Meanwhile, Heineken’s Congo unit, Bralima, continues to operate in other parts of the country not affected by the conflict.

Heineken’s operations in Africa are already under pressure. Social unrest has also complicated the company’s activities in other African markets such as Ethiopia, Kenya, and Mozambique.

In 2024, Heineken reported €4.13 billion ($4.3 billion) in revenue from Africa and the Middle East, one of its four core geographic segments, a 2.3% decline from the previous year. Beer sales in the region fell to 29.5 million hectolitres, down from 34.8 million in 2023.