SOUTH AFRICA – South African Breweries (SAB) has announced the achievement of its R5.8 billion investment commitment to enhance production capacity at two major plants.
The investment was allocated to civil works and new equipment, specifically aimed at facilitating increased local production for innovative new products, as per a statement from the company.
This significant investment, initially announced at the South African Investment Conference 2023, targeted two pivotal facilities: the Prospecton Brewery in Durban and the Ibhayi Brewery in Gqeberha, Eastern Cape.
SAB’s CEO, Richard Rivett-Carnac, emphasized the company’s dedication to sustainable investments and economic growth, underscoring the substantial contributions made by their investments over time to the South African economy.
Rivett-Carnac highlighted the positive impact on job creation resulting from the Prospecton Brewery expansion, generating approximately 25,000 additional jobs across various sectors in the value chain.
Similarly, the Ibhayi Brewery investment contributed to the creation of 14,000 jobs throughout the beer value chain across South Africa, according to the brewer.
These employment opportunities span sectors such as agriculture, logistics, manufacturing, hospitality, construction, and innovation.
In total, the estimated 39,000 jobs created through these investments have diversified the workforce, providing employment in critical sectors of the economy.
SAB, with around 5,700 employees and collaborations with nearly 3,739 suppliers, supports approximately 250,000 jobs in the beer value chain.
A subsidiary of Belgium-based beer major AB InBev, SAB prioritizes sourcing ingredients locally, with 94% of their beer production originating from South Africa.
SAB’s recent success is further underscored by robust local demand, particularly for flagship products like Carling Black Label. The company has notably gained market share from its competitor, Heineken.
AB InBev, SAB’s global parent company, reported impressive results for its South African unit, revealing high single-digit growth in beer volumes in the third quarter of the year.
Revenue growth reached the mid-teens, driven in part by strategic price increases, while global beer volumes remained mostly flat.
The positive outcomes of SAB’s investments align with the objectives of the South African Investment Conference, initiated in 2018 by President Cyril Ramaphosa to stimulate economic activity.
The conference targeted to mobilize approximately R2 trillion in new investments over the next five years, starting in the upcoming year, contributing to the nation’s economic vitality and job creation.