SAB invests US$320m in supporting South African economic growth
SOUTH AFRICA – South African Breweries (SAB) has committed R5.8-billion (US$320m) investment this year to stimulate South African economic growth by expanding its production capacity and creating more employment opportunities, SAB CEO Richard Rivett-Carnac said.
South African Breweries, headquartered in Johannesburg, is a major brewery in the country, and a direct subsidiary of the Belgian multinational drink and brewing company Anheuser-Busch InBev.
This year’s investment is in addition to the R11.7-billion invested in the preceding two years. SAB invested R4.5-billion in 2022, which included a R925-million investment into its Prospecton Brewery and the R510-million into Ibhayi Brewery.
“Our big dream for South Africa is to support gross domestic product growth, create jobs and contribute meaningfully to society. Our investments in 2023 will help us reach that dream,” Rivett-Carnac said.
We remain optimistic about South Africa’s potential and are committed to playing our part in stimulating a much-needed recovery and creating a future with more cheers.”
For this year’s investment, R2.4-billion will be allocated to new developments supporting growth and cost initiatives, including a R555-million expansion of the Ibhayi Brewery, and R3.4-billion will be allocated to sustaining SAB’s operations and infrastructure.
The investment into the Prospecton Brewery is expected to create 25 000 additional jobs, while the Ibhayi Brewery investment is expected to result in the creation of 14 000 jobs throughout the beer value chain across South Africa.
“Through knock-on and multiplier effects, our R5.8-billion investment is anticipated to contribute billions to our gross domestic product (GDP), which, alongside the other investment commitments tabled at the 2023 SAIC, will provide a significant boost to an economy sorely in need of stimulus,” Rivett-Carnac added.
SAB announced the commitment during the just concluded fifth South Africa Investment Conference (SAIC), an investment drive seeking to attract R1.2 trillion over five years.
Last year’s SAIC raised R367bn (US$21bn) of new investment commitments, “bringing our five-year investment target firmly into sight,” said InvestSA, the main organizing body of the conferences. “Since the first investment conference in 2018, South Africa has attracted R1.4 trillion (US$78bn) in commitments.”
The sectors range from infrastructure development, healthcare, real estate, logistics, Agri-processing, foods and beverages, and automotive to creative and artistic industries.
The investment drive has become a key component of the Economic Reconstruction and Recovery Plan announced in 2020.
“We are encouraged by, and supportive of, the work of government, and the dialogue with government, is doing to address the energy and resource challenges, but, given where we are, more work needs to be done, and we will support initiatives that help to maintain the continuity of operations, prevent losses and support economic growth,” SAB noted.
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