Case study: Economic Impact Assessment
“Our local subsidiary Bralirwa contributes up to 15 per cent of the domestic revenues to the government. We are a role model company in Rwanda in many respects.”
Door Plantenga General Manager, Bralirwa, Rwanda
Measuring local economic impact in Rwanda
The first operating company to use the methodology developed by Heineken in a pilot in Sierra Leone in 2006 was Brasserie et Limonaderie de Rwanda (Bralirwa) SA. The main reason for this study to be executed was local management’s desire to obtain a better insight into the elements that construct the local economic impact of the company. A secondary reason was to be able to create a better understanding amongst local external stakeholders about the company’s dynamics.
“The study clearly shows that there is much more to say about our company than you would get out of our profit and loss statement and the balance sheet. As important part of the value chain, Bralirwa generates an income for thousands of Rwandans,” says Door Plantenga, General Manager of Bralirwa SA. The study shows that the way in which Heineken operates – brewing locally for the local market – has benefits for both the company and the host community. “The problem with countries like Rwanda is that there is only a small, formal, private sector that pays taxes to the government so it can invest in the development of the country. This means that with €32.9 million paid in local taxes in 2006 the tax burden is high. There is constant pressure on the level of the taxes. Broadening of the local tax basis is necessary for a sustainable national economy.”
On the basis of the Economic Impact Assessment, a number of scenarios have been developed that could enlarge the positive economic impact of Bralirwa. These scenarios are now subject to further feasibility studies.