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Freedom Mupanedemo Midlands Bureau
CASH-strapped Kwekwe City Council has leased its opaque brewing company, Simba Breweries, with the new owner set to rebrand the product to Ngoda Beer.

Simba Breweries is wholly-owned by Kwekwe City Council and used to be the local authority’s cash cow before its closure about 10 years ago when the brewing entity started posting losses.

Acting Kwekwe town clerk Mrs Lucia Mkhandla confirmed the leasing of Simba Breweries, but declined to give further details. Sources said council leased the beer outlet to Ngoda Investments after it outbid Ingwebu Breweries, which also intended to run the beer outlets.

“There were two companies eyeing the business, Ngoda Investments and Ingwebu Breweries, said the source. The tender was won by Ngoda Investments and they have already started brewing beer.”

The source said Ngoda Investments had since changed the product from Simba Beer to Ngoda Beer.

“They have since made some deliveries into bars, said the source. If you go around bars in Kwekwe, the product is already on the market and the investor seems to be serious about the new investment.”

The source said according to the lease agreements, the local authority was set to get about $700 000 in the next four years.

Deputy Mayor Shadreck Tobaiwa said the leasing of Simba Breweries helped the local authority improve on its revenue collections.

The beer brewing company used to be the major cash cow for council and leasing it out was a step in the right direction. We have started getting some revenue out of it and when the council finds its footing again, it should run it,” he said.