At the 2023 South Africa Investment Conference (SAIC) yesterday, Heineken Beverages announced a R15.5bn investment over five years, Photo: Reuters
Heineken and South African Breweries, the two leading beer groups operating in the country, yesterday announced a whopping R21.3 billion of new investment projects over the next five years.
Earlier this year Heineken finalised the acquisition of Distell and Namibia Breweries, which were to be combined with Heineken South Africa into a new Heineken majority-owned business, Heineken Beverages.
Yesterday at the 2023 South Africa Investment Conference (SAIC), Heineken Beverages announced a R15.5bn investment over five years, including a R3.8bn investment for a new greenfield brewery, and a R1.7bn investment into a maltery.
The remaining R10bn investment would be used for capital expenditure projects to expand and maintain existing operations in South Africa, Heineken SA managing director Jordi Borr said in a statement.
In 2019, Heineken South Africa announced a R1.6bn local investment earmarked for several projects, most notably the extension of its brewery in Sedibeng and construction of a 6.5 megawatt solar power plant.
Also at the SA Investment Conference, South African Breweries (SAB) committed R5.8bn to the South African economy in 2023. Some R2.4bn would be allocated to new developments supporting growth and cost initiatives, including a R555 million expansion of the Ibhayi Brewery. About R3.4bn would be allocated to sustain SAB’s operations and infrastructure.
SAB CEO Richard Rivett-Carnac said: “Through knock-on and multiplier effects, our R5.8bn investment is anticipated to contribute billions to GDP (gross domestic product), which, alongside the other investment commitments at the 2023 SAIC, will provide a significant boost to an economy sorely in need of stimulus.”
SAB’s R5.8bn investment commitment follows its R4.5bn commitment in 2022, which included a R925m investment into its Prospecton Brewery and R510m into Ibhayi Brewery.
BUSINESS REPORT
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