The South African Breweries (SAB) has pledged to invest a further R920-million into its Prospecton and Ibhayi breweries, ramping up its total South African investment commitment to R4.5-billion.

This was announced by SAB CEO Richard Rivett-Carnac at the fourth South Africa Investment Conference on March 24, held at the Sandton Convention Centre, in Johannesburg.

“These investments will give us the capacity to not only contribute to the economy but also to be able to contribute to job creation, tax, excise and procurement spend,” he said.

Rivett-Carnac said the new investment commitment would inevitably have an impact on jobs through direct and indirect employment – adding to the 250 000 jobs sustained by the national beer sector.

To add to the impact, he said, this investment would enable SAB to continue transforming the industry by employing black suppliers such as HTP and Isanti Glass.

SAB’s Prospecton brewery, in Durban, will receive the bulk of this new investment, with a total of R650-million that will help expand its facilities. This investment is slated to provide R3.1-billion in additional tax revenue and generate 24 000 jobs through the full value chain.

Additionally, it is noted that the investment will generate R4.4-billion in additional gross domestic product for the KwaZulu-Natal economy.

A further R270-million of this investment will be committed to upgrading SAB’s Ibhayi brewery, which is in the Eastern Cape.

Considering the economic impact of the Covid-19 lockdowns, Rivett-Carnac explained that SAB’s intention was to assist with economic recovery.

“The Budget delivered by the Finance Minister in February ensured that economic recovery was prioritised by keeping the beer excise adjustment closer to inflation. This has provided us with the financial space to grow the beer category responsibly and aid our government in our collective mission towards economic recovery and growth,” he said.

This new investment pledge follows SAB’s commitment to invest R2-billion in capital expenditure projects in its 2021 financial year, which it channelled into several upgrades at its operating facilities and providing some product innovations.