OnTap Magazine

SAB and HEINEKEN South Africa pledge R21.3 billion at the South African Investment Conference towards investment projects over the next 5 years On the 13th of April 2023, the fifth installment of the South Africa Investment Conference took place, which is aimed at attracting investment into the country. BASAwelcomed thewonderful news of HEINEKEN South Africa and South African Breweries (SAB) pledging R21.3 billion in new investment projects over the next five years. These investments will not only create much needed jobs for many South Africans, but will also serve as a boost to other economic sectors such as agriculture and the hospitality industry. HEINEKEN South Africa announced a R15.5 billion investment over five years, including a R3.8 billion investment for a new greenfield brewery, and a R1.7 billion investment into a maltery. The remaining R10 billion investments will be used for capital expenditure projects to expand andmaintain existing operations in South Africa. SAB committed R5.8 billion to the South African economy, with R2.4 billion being allocated to new developments that will support growth and cost initiatives, including a R555 million expansion of the Ibhayi Brewery. The remaining R3.4 billion, will be allocated to sustaining SAB’s operations and infrastructure. The beer industry is already a major contributor to the South African economy, making up roughly 1.3% of the country's GDP. By bringing in an additional investment of R21.3 billion, the industry will be creating even more opportunities for growth, economic revenue and job creation. While these bigger companies continue to drive investment into the South African economy, it is also important to also acknowledge the role that smaller craft brewers play by creating local jobs while also promoting beer tourism. South Africa currently has over 200 craft breweries with each one of these businesses supporting 6 to 10 jobs in their communities. These craft brewers also play a critical role in promoting beer culture, beer tourism and beer entrepreneurship in our country. Following a challenging few years and a myriad of economic challenges facing our country, it is encouraging to see that the beer industry is leading the way when it comes to investing in its current operations as well as its plans to expand its economic footprint over the next few years. The Beer Association of South Africa remains committed to working in partnership with the South African Government to promote beer as a drink of moderation that must be enjoyed safely and responsibly by citizens, while continuing to ensure our sector remains an economic powerhouse in the country for years to come. BASAWELCOMES THE ANNOUNCEMENT BY HEINEKENAND SAB PLEDGING R21.3 BILLION IN NEW INVESTMENT PROJECTS OVER THE NEXT FIVE YEARS ontapmag.co.za | Winter 2023 | 9