South African Breweries has announced a R2.8bn investment into the expansion of its two operations in Alrode south of Johannesburg and at Rosslyn near Pretoria.
In a statement on Tuesady, the country's largest brewer said the multi-billion rand investment is over and above the Public Interest Commitments made by AB Inbev, at the time of last year's business combination with SABMiller, in which the company agreed to invest R1-billion in South Africa over five years.
“The continuous investment shows we believe in the future of our category and that there is a lot of growth still to be had. It demonstrates the company’s agenda to invest and participate in expanding the economy,” said Ricardo Tadeu, SAB and AB-InBev Zone President for Africa.
“This investment will empower our employees to do what they do best – brewing the best quality beer, innovating and ensuring that we do so in a way that will drive sustainable growth.”
Tadeu said by creating jobs and driving economic growth and investment, SAB would contribute towards the company’s Sustainable Development Goals which were aligned with South Africa’s National Development Plan. “We strive to create a growing world where everyone has the opportunity to improve their livelihood.”
Chairman of AB InBev and SAB, Jabu Mabuza, was optimistic about the investment increasing confidence and thereby growing the economy.
“Fixed investment which leads to confidence is one of the key components needed to drive economic growth in a country. In turn, this helps to create jobs and encourages foreign investment which is not going to happen if domestic investment does not take place.
“At the onset of the global business combination between SABMiller and AB InBev the agenda was one of growth and investment. A commitment was made to grow and make a real difference in South Africa and this commitment has been accelerated through this investment. It is an important vote of confidence in the beer category and the South African economy at large,” says Jabu Mabuza.
Lionel October, Director-General of the Department of Trade and Industry, said the investment is a welcome boost to the economy in terms of job creation, government’s efforts to promote industrialisation and overall investor confidence. Additional spinoffs are transfer of technology and skills development.
