SABMiller measures the risk of lacking water in Africa

The brewery has a long history in the Southern African nation. Zambia has introduced some of the highest rates of economic growth on the continent in recent ten years and Zambians like a beer. For the past eight years, the growth of the SABMiller beer sales in the country by volume was 7.1%-more than double than in Africa as a whole.
Still, despite all the positives, Zambia is considered high-risk in a critical issue: the availability of water, the lifeblood of the beer industry. So, while SABMiller studies expand in the country, also warns of the possibility of having to translate its brewery in the capital, Lusaka, in view of the increased competition for resources.
"Depending on the growth rate and the volume, we can move on," said the CEO of SABMiller, Alan Clark. "We are talking now of periods of 5, 10, 15 years".
Water availability for consumers and businesses in Africa and in other developing regions has become a serious concern, amid the growth of populations and rapid urbanization, which increases the pressure on underdeveloped infrastructure and overwhelmed. Water crises are classified as the biggest world risk in terms of impact, according to the report of this year's World Economic Forum global risks.
For the breweries that's particularly crucial-for each liter of beer brewed, SABMiller needs on average of 3.3 litres of water, and in Zambia the volume is even higher, around 4 litres. For the soft drinks, the number decreases to about 1.9 litre.
"Zambia has a relatively high level of rainfall, so there's enough water over the country for the population," says Clark. "The question revolves around the how much water is available in Lusaka. How is the rendering of water, as is the condition of the water? So, there may be an area of stress around it. "
In the SABMiller brewery in Lusaka, the group used about 2.5 million hectolitres of water to produce beer in its last financial year ending in March, and 1.3 million liters to soft drinks.
To contain the risk of water shortages, SABMiller has taken measures to reduce the use of water in its breweries in more than 25% compared to 2008 volumes, including the recycling of water and measuring improvements.
In the last 12 months, reduced water use in 29 million hectolitres-the equivalent of the water used by more than 116 000 Africans each year, according to the group.
Now, SABMiller drew as a reduction target of 20% more, for 3 liters of water for beer, until 2020. "The direct impact [of water scarcity] at the moment is really about direct supply to the breweries," says Clark. "There is a medium to long-term problem with agriculture and our supply network, and the full impact of the water on our supply network."
SABMiller gets about 30 percent of their profits in Africa. Invests between $ 400 million and $ 450 million in capital in the region, with the goal of raising revenue on the continent in more than 10% over the next three to five years.
Nigeria is another important target for expansion. Clark says that increasing the number of breweries-currently, there are three-of the group in the most populous country in Africa "will be seriously in the plans.
The availability of water, however, will be in the foreground. "We are in direct competition against functional requirements [...] When it comes to an immediate comparison, people having access to drinking water or access to beer, it's clear who's going to lose, "says Clark. "Those days are over [...] simply can't go into an area and absorb resources indiscriminately ".
The problem is not confined to Africa. The supply of water is also a factor of concern for the Group's breweries in India and in the State of Texas, USA. In the Asian country, the Group had to get to the point of carrying water by trucks to their breweries