(Ecofin Agency) - South African Liquor dealer, Distell, just announced it was going to scale down its plans for expansion in Angola. As a result of oil price tumbling, Angola who accounts for 50% of the Distell’s African business exhibited a quite challenging trade environment for the company, thus considerably slashing its performances in other African nations. Distell as a result decided to scale back plans for a $40m Greenfields production plant directed toward Angola.

Switching from the 400,000 hectoliters production plant it initially planned, the firm decided to build one that would produce 100,000 hectoliters of spirit. Profits generated by the new infrastructure will be reinvested in its expansion. This approach, which Distell’s director defines as “modular” should allow the firm to mitigate risks and control consumption in the market.

The group who released its half-year results recorded an 18% increase in profit as Rand weakened and boosted export. Distell whose majority stakeholder is investor Remgro added that it recorded a satisfying performance in local market with a 16% growth of its sales revenues.

Aaron Akinocho